Economic Recovery and Livelihoods Program (ERLP) FY2021 Q4 Report

This component aims to strengthen the capacity of key institutions, including the Central Bank of Yemen (CBY), the Ministry of Finance (MOF), the Customs Authority, and the Port Authorities. The primary objective is to restore macroeconomic stability, enhance fiscal management efficiency, and increase international trade flows. Monetary Policy Development and Implementation is a subcomponent of Improved Macroeconomic Functions of Key Institutions. It provides effective macroeconomic management advisory services within the current crisis environment. The subcomponent undertakes coordinated action with the CBY to control monetary growth, stabilize price and exchange-rate expectations, enhance the functioning of the payments system, and improve financial sector regulatory oversight. The goal is to help gradually restore confidence in the financial system. During the fourth quarter of FY2021, ERLP upgraded the CBY's institutional capacity and provided technical assistance to improve its monetary policy development and implementation. The program also worked with the CBY to enhance the functioning of the payments system and improve financial sector regulatory oversight. These efforts aimed to support the CBY in its efforts to control monetary growth, stabilize price and exchange-rate expectations, and restore confidence in the financial system. Improved Fiscal Policy Development and Implementation is another subcomponent of Improved Macroeconomic Functions of Key Institutions. It aims to strengthen the capacity of the MOF to develop and implement effective fiscal policies. The subcomponent provides technical assistance to the MOF to improve its revenue policy and administration, tax administration, debt planning and management, budget planning, and budget implementation. The goal is to enhance fiscal management efficiency and support the MOF in its efforts to restore macroeconomic stability. Strengthened Trade Facilitation Policy Development and Implementation is a subcomponent of Improved Macroeconomic Functions of Key Institutions. It aims to strengthen the capacity of the Customs Authority and the Port Authorities to implement effective trade facilitation policies. The subcomponent provides technical assistance to the Customs Authority and the Port Authorities to improve their trade facilitation policies and procedures. The goal is to increase international trade flows and support the ROYG in its efforts to restore macroeconomic stability. The Economic Recovery and Livelihoods Program (ERLP) supports Yemen's journey to self-reliance by focusing on improving critically important macroeconomic stabilization and private-sector competitiveness enhancement conditions and outcomes. ERLP lays the institutional groundwork for sound macro-financial policy, addresses trade barriers that limit the flow of commercial and humanitarian assistance, promotes sustainable livelihoods, raises competitiveness, and generates employment opportunities in key high-potential sectors of the economy. ERLP Component 2 - Improved Microeconomic Conditions - seeks to strengthen the capacity of small and medium enterprises (SMEs) and promote sustainable livelihoods. The component aims to improve the business environment, increase access to finance, and enhance the competitiveness of SMEs. It also seeks to promote sustainable livelihoods by supporting the development of key sectors, such as agriculture and agribusiness, and fisheries. During the fourth quarter of FY2021, ERLP continued to support the development of SMEs and promote sustainable livelihoods. The program provided technical assistance to SMEs to improve their business environment, increase access to finance, and enhance their competitiveness. ERLP also supported the development of key sectors, such as agriculture and agribusiness, and fisheries, to promote sustainable livelihoods. The Economic Recovery and Livelihoods Program (ERLP) has made significant progress in improving macroeconomic stabilization and private-sector competitiveness enhancement conditions and outcomes in Yemen. The program has strengthened the capacity of key institutions, improved fiscal management efficiency, and increased international trade flows. ERLP has also promoted sustainable livelihoods, raised competitiveness, and generated employment opportunities in key high-potential sectors of the economy.