KUWAIT CITY, July 1: The local economy does not move as expected due to the prevalence of corruption in public institutions, the absence of a sound economic development strategy, and political tyranny, reports Al-Watan Arabic daily quoting former Minister of Commerce Hisham Al-Otaibi.

Al-Otaibi argued the country does not face any money-related problems due to its financial surplus but it lacks experts who can efficiently manage its finances. He believes the marginalization of the private sector negatively affects the economy, in addition to the bureaucratic procedures that delay the implementation of vital development projects.

Alleging that the government has taken a number of unstudied decisions, Al-Otaibi warned the executive will pay a high price for these decisions, particularly the approval of unnecessary salary increments. He said most of the recruitment and disbursement procedures the authority had taken were based on political choices that had nothing to do with economic development or national interest. He stressed the need to take the required steps to end corruption and political tyranny.

Al-Otaibi confirmed the investigations into the alleged smuggling of diesel are still ongoing, asserting the oil sector is keen on distancing itself from any political deal.

Kuwait might face difficulties in realizing the vision of HH the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah to transform the country into a financial and commercial center in the region due to the instability of the political sector, reports Al-Hurriya daily quoting former Minister of Commerce and Industry Dr Amani Bouresli.

Bouresli explained the realization of the Amir’s vision is possible only through the coordinated efforts of public and private institutions, and political stability.  She recommended the formation of a supreme council for the economy to establish links between the two sectors, so they can greatly contribute to the transformation of the country into a financial and commercial hub.

In another development, Bouresli said the country may soon face various financial problems because the price of oil in the international market continues to decline. 

She asserted the country does not deal properly with the requirements and demands of the people.  She warned about budgetary deficits caused by the government’s failure to carry out comprehensive studies before taking important decisions, such as the approval of salary increments.  She added the approval of unnecessary pay raise schemes might take a toll on the State budget, up to the extent that Kuwait can no longer afford to pay the salaries.  She called for stringent measures to ensure the proper disbursement of public funds and to avoid depletion of the nation’s coffers.