WITH complete transparency, we say to those in charge that a clear roadmap must be put in place to enhance the national product and annual growth rate. Relying solely on oil, foreign investments, and fees collected from citizens and residents is insufficient. This approach reflects a lack of foresight regarding the requirements for economic growth and competitiveness in the region and the Arab world.
To be honest, we rely heavily on oil prices to develop our financial policies and annual budgets. This dependence has led to a recurring deficit that accumulates each year, sometimes reaching alarming levels and depleting our financial reserves. It seems we have not learned from the several crises that affirmed the urgent need to diversify our internal sources of revenues. We must also benefit from Kuwait’s strategic location and the model on which it was founded four centuries ago. I am talking about the personal initiatives that saved our society on multiple occasions.
Currently, the majority of the budget is allocated to salaries. If the state continues on this shortsighted path, these costs will rise uncontrollably due to the random hiring practices that encourage complacency. This has contributed to the prevalence of fake certificates, as the focus has shifted toward academic credentials rather than practical skills and technical expertise. As a result, the job pyramid has become inverted, with an expansion of office jobs while technical positions, which are essential for long-term development, are dwindling.
Planners tasked with boosting societal stability through a strong economy seem oblivious to this reality. In many countries, especially developing nations and those striving for self-sufficiency, technical institutes and colleges graduate young people who are prepared to enter the labor market to serve the needs of the state and the economy, rather than relying on expatriates. According to the Constitution, “public jobs are a national service entrusted to those who perform them,” and state employees are expected to act in the public interest when fulfilling their duties. The law states that expatriates may only be appointed to public positions in specified circumstances. Unfortunately, this principle has not been effectively implemented.
Reports indicate that salaries and subsidies account for approximately 81 percent of the budget, totaling KD 20.4 billion, while capital expenditures are only eight percent. This suggests that the deficit is likely to worsen. To handle this, a clear plan is necessary to reduce waste. This plan should include benefiting from the large percentage of young people of working age through vocational training and creating opportunities for personal, national, and other initiatives. This raises the question - What prevents Kuwait from emulating other Gulf countries that have embraced diverse ideas and minds to benefit from them, with some among them beginning to grant citizenship and others facilitating their residency processes? Many countries offer various residency categories - golden, permanent, and others - that boost stability and encourage residents to spend in those countries instead of transferring funds abroad.
These countries provide entertainment options, visa facilities, and opportunities for property ownership. On the other hand, Kuwait imposes several restrictions on citizens and residents. This regulatory environment has made Kuwait less attractive for both local and foreign investment, effectively repelling capital. Residents who are barred from bringing their families or relatives often find themselves with no outlet, leading them to send the majority of their salaries back home, which is a right that no one can dispute.
Similarly, citizens who cannot find opportunities to enjoy their own country may seek solace in places like the UAE, Saudi Arabia and others, where they can breathe without feeling constrained. It is evident that officials are overlooking important economic factors, which is reflected in outdated regulations related to industry, residency, trade, and the “BOT” (Build-Operate-Transfer) model, all of which are laden with restrictions. As we had previously mentioned, Kuwait seems to be a paradise accessible only to those favored by extremists. If laws are not updated and improved, we may remain confined in this locked box.
By Ahmed Al-Jarallah
Editor-in-Chief, the Arab Times
