The Republic of Yemen has experiencedsteady development in the recent past and its Gross DomesticProduct (GDP) per capita is approaching US$1,000. By manyaspects, Yemen is unique. It is still a rural country (withmore than 70 percent of the population living in thecountryside). It has about 140,000 villages and smallsettlements spread out all over the territory, many of whichstill need road access and harbor most of the country'spoor (40 percent of the total population). Given the unevendistribution of population, transport demand variesenormously between different parts of the country. It ishighest by far in the densely populated mountainousnorthwest part of the country and generally very small inthe vast low density eastern part. Transport is essential toensure that the rural areas participate in the main streamof economic and social life. Transport is also essential fortrade, which is a key to the future of the economy. This isreinforced by the fact that most of the population islocated away from the coastal areas, including the capitalcity, Sana'a, in some of the most difficult terrain onecould find in any country of the world. This reportcomprises three main parts: (i) a broad assessment of thesituation of the Yemeni road sector and a comparison withcountries similar to Yemen; (ii) an analysis of thesector's main issues; and (iii) an agenda for reform.
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