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A comparative study of the economies of the Yemen Arab Republic and the People's Democratic Republic of Yemen (1970-1988)

Ali Saleh Al-Hagari, University of Nebraska - Lincoln

Abstract

On May 22, 1990, the Yemen Arab Republic (YAR) and the People's Democratic Republic of Yemen (PDRY) were reunited under one constitution and internationally recognized as the Republic of Yemen (ROY). The reunification marked a new era of hope for achieving, among other socioeconomic and political gains, rapid economic growth and development which might lead to a rising standard of living for all people of Yemen. Although both the YAR and the PDRY had pursued deliberate development policies with measurable success since the early 1970s, they continued to be underdeveloped economies characterized by low per-capita income, low average productivity, inefficient use of resources and low levels of investment in modern industry. But the modernization of unified Yemen will be built upon its natural resources, the economic progress that the country has already attained over the past two decades and the efficiency of the new country's economic system in promoting growth and development. Four major results are obtained in this study. First, the two countries have achieved considerable economic progress since the early 1970s. Second, the Yemen Arab Republic's economic achievements outweigh those of PDRY during this period. Third, the economic structure, strategies and policies of YAR were more conducive to economic development than of the People's Democratic Republic of Yemen. And, finally, the study proposes a development strategy for the Republic of Yemen based on export-oriented industrialization with some emphasis on agricultural development.

Subject Area

Economics|Political science|Social structure

Recommended Citation

Al-Hagari, Ali Saleh, "A comparative study of the economies of the Yemen Arab Republic and the People's Democratic Republic of Yemen (1970-1988)" (1992). ETD collection for University of Nebraska-Lincoln. AAI9233390.
https://digitalcommons.unl.edu/dissertations/AAI9233390

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