Yemen is an Arab nation situated in Southwest Asia. It is the second largest state in the peninsula occupying 203970 sq. meters. Its freedom score is 55.5 placing its economy in the 123rd position in the 2014 index. Koszinowski indicates that Yemen is developing at a slow pace that is almost tending towards stagnation (290). It is at the semi-periphery economic position. The claim is evidenced by the 0.1% growth rate and the 0.8% compounded annual growth rate in the past five years (Koszinowski 290).
Ghanem notes that petroleum production is the major source of revenue that accounts for 25% of the GDP and 63% of revenue (402). The country exports major products to China, South Korea, India, Switzerland, and other countries. Therefore, it contributes substantially to the economy of the world. China being one of the biggest economic giants in the world relies on Yemen for some of its oil supplies. Hence, a portion of the world's economy relies on the economy of Yemen.
Friedrich’s idea of protectionism for growing industries is eminent in Yemen. Colton observes that the government exercises strict regulations in its industrial sectors, majorly oil (415). The judicial systems are unfair for foreign investors. Due to this, the foreign investors cannot venture into the private sector to compete with national corporations. Specifically, the oil industries are strictly manned by the government through the provision of large subsidies. It is because the government of Yemen needs to maintain their control of oil exports. Yemen also need to reduce competition in its oil sector. Through controlling the countries to export to, Yemen can control the world's economy and determine its economic allies.
Works Cited
Colton, Nora Ann. "Yemen: A Collapsed Economy." The Middle East Journal 64.3 (2010): 410-426. Print.
Ghanem, I. "Yemen: Recent Cases." Arab Law Quarterly 15.4 (2010): 401-404. Print.
Koszinowski, Thomas. "The Yemen Arab Republic And The People's Democratic Republic Of Yemen." Lo Spettatore Internazionale 15.4 (2010): 285-302. Print.
