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MENAP Roundtable Summary: Reform Priorities for Yemen and the 10-Point Agenda

Introduction

The second meeting of the Yemen Forum at Chatham House, held on 18 February 2010, focused on the reform priorities for Yemen and the 10-Point Agenda. Ginny Hill, the chair of the Yemen Forum, welcomed participants and highlighted the renewed commitment to political, economic, and social reforms following the ministerial meeting in London at the end of January. She introduced Jalal Omar Yaqoub, the Deputy Finance Minister of Yemen, as the author of the 10-Point Agenda, and Michele Cervone d'Urso, Head of the EU Delegation in Yemen.

Core Content

Jalal Yaqoub emphasized the critical need for reform in Yemen, noting that the government's weakness in key areas contributes to instability and the rise of extremism. He outlined the following areas as requiring improvement:

• Job creation
• Public services (e.g., water and power)
• Rule of law

He pointed out that the civil service has become a major issue, due to its role as a last resort for employment and the resulting inefficiency. The civil service's failure to deliver effective services has undermined government credibility and stability.

Ten Priorities

The 10-Point Agenda outlines the following priorities for reform:

1. Improve civil service efficiency by attracting new talent through a transparent, merit-based recruitment process, including from the Yemeni diaspora.
2. Create new job opportunities for Yemenis in GCC member states, with the aim of boosting remittances.
3. Reduce diesel subsidies without raising fuel prices, saving $200 million annually, and redirecting funds to the Social Welfare Fund.
4. Fast-track oil exploration to reduce the concession process from three years to six months, as oil constitutes 70% of Yemen’s revenue.
5. Tackle land disputes to reduce legal cases and improve the efficiency of the court system.
6. Increase presidential involvement in the reform process to ensure high-level support.
7. Develop the Port of Aden as a regional hub.
8. Enforce government authority and the rule of law, including addressing weapons possession, kidnappings, and traffic regulations.
9. Implement the national water sector reform plan, focusing on regulating well drilling and improving qat irrigation efficiency.
10. Improve Yemen’s image in the international community.

Response

Michele Cervone d'Urso emphasized that the key priority for Yemen is tackling poverty, which is driven by economic challenges, declining oil prices, and the transition to a post-oil economy. He noted that tax revenues are below 10% of GDP and that Yemen spends less than 2% on healthcare. He supported the idea of fast-tracking oil exploration and developing Aden as a regional hub, while stressing the importance of presidential support for the reform agenda.

He also endorsed the idea of reducing fuel subsidies as part of a sequenced plan that includes public awareness campaigns and IMF support. He called for phased implementation of reforms to protect the poorest Yemenis and allow the social contract to solidify. Cervone highlighted the crucial role of the GCC in providing resources and expertise to support Yemen's development.

Discussion Highlights

Participants raised several questions, including:

• The EU's approach to poverty and social safety nets
• Corruption and how to address it
• Human rights concerns
• Whether Yemen has an active political plan to increase legitimacy
• Labour access to the GCC
• Agricultural reform and maritime security
• Funding for desalination plants

Yaqoub and Cervone addressed these issues, with Yaqoub stressing that the 10-Point Plan is a framework for broader reforms rather than a comprehensive solution. He also noted that Yemen's geographic challenges, such as its highlands, make desalination and water distribution difficult.

Cervone emphasized the need for vocational training to meet GCC employment requirements and the importance of international support to enhance political will for reform.

Conclusion

Ginny Hill concluded the session by asking Yaqoub about expectations for the IMF reform programme and Yemen’s progress in the coming year. Yaqoub expressed hope that the IMF programme would provide leverage for other reforms and that the upcoming conference in Riyadh would mark a step forward in the reform process. He anticipated more success stories in the future as the reform agenda gains momentum.