Introduction

1. The human being

2. The state

3. The economy

4. Defence and security

5. Foreign policy

CHAPTER THREE: THE ECONOMY

Allah says:

"Allah will deprive usury of all blessing, but will give increase for deeds of charity" Al-Baqarah (2:276)

Allah also says:

"It is We who have placed you with authority on earth, and provided you therein with means for the fulfillment of your life; small are the thanks that you give" Al-A'araf (7:10)

Allah also says:

It is Allah Who has created the heavens and the earth and sends down rain from the skies, and with it brings out fruits wherewith to feed you; it is He who has made the ships subject to you, that they may sail through the sea by His Command; and the rivers (also) has He made subject to you. And He has made subject to you the sun and the moon, both diligently pursuing their courses: and the Night and the Day He (also) made subject to you. And He gives you of all that you ask for. But if you count the favors of Allah, never will you be able to number them: verify, man is given up to injustice and ingratitude" Ibrahim (14:32-34)

Foreword

What the Yemeni economy suffers from, such as short comings in its structure and noticeable failure in its ability to play its role, is a result of the absence correct economic direction and lack of realistic economic policies. This is also due to the use of the state and society as a laboratory for testing economic opinions and theories as well as delegating the management of the economy - vital as it is - to an incapable and unqualified administration.

Ignoring administrative corruption, plundering and looting of public funds, and sidelining or limiting the role of the private sector in the process of development - as result of absence of legal safeguards that motivate participation, as well as the absence of a strong and just judiciary.

This has lead to structural economic imbalance, the most prominent of which is the imbalance between production and consumption, between investment and savings, between imports and exports, as well as the country's being subjected to a catastrophic economic crisis. Such crisis threatens social peace and political stability, and can push the country to the entrapment of foreign debts, and as a result of which economic and political TABAAAYAH.

It is the YIP's view that there is no way of escaping all this except through adherence to a programme that is based on Islamic principles and values and mobilises the people's spiritual energies and social powers and adopt serious and bold economic policies. Such policies need to be realistic and take into consideration the stage of social and economic development and the available means to society in order to bring about the desirable change. All this is based on the following.

1. Freedom of economic activity according to the objectives of Shari'ah as the correct approach to the participation of every individual in society in shouldering the burden of economic and social development so that the spirit of good competition may prosper in the areas of production and construction, in so doing guaranteeing the interest of the individual and society away from exploitation and monopoly, both of which are forbidden in Islam.

2. Respect for private ownership and allowing private and co-operative sectors to take part in all economic activity by providing all the guarantees and facilities to ensure the success of their investments and effective participation in building the country. Reducing the role of the state to undertaking infrastructure projects within society, investing in the natural resources and preparing the appropriate conditions for the establishment of the economic activity on the basis of market forces, free competition in a socio-economic structure that achieves the requirements of both freedom and justice.

3. Justice. Which means giving priority to the achievement of social equilibrium before in other demands, and that the aim of development should not be just to achieve a quantitative increase in GDP. On top of this it is important to tackle poverty, deprivation and social imbalance, as well as the achievement of streamlined distribution of the fruits of economic and social development between rural and urban areas and between the governorate of the Republic of Yemen.

4. Re-enforcing economic independence, to the extent that the criteria for the feasibility of any economic activity, whatever its legal set-up, is the extent to which it contributes to this general aim.

5. Capable and impartial administration is the backbone of success in achieving economic policies and attaining the objectives with the best means and the least cost.

6. Liberating economic activity from the dominance of the political process and submit it to safe scientific criteria and the demands of reality.

7. Introducing the criteria of economic viability to public sector projects, which are commercial in character, represents a realistic way to improving its competence and developing its performance. This will lead to reducing the financial burden on the state, and releasing additional resources that can be used in other economic activities.

Continued ...