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ARAB AND WORLD

Sun 26 Mar 2023 10:45 am - Jerusalem Time

Kuwait's political crises hinder its quest to catch up with the growth of its neighbors

Kuwait is the most open country in the Gulf in terms of the political system, but it is witnessing frequent political crises that hinder its desire for reform and widen the gap between it and neighboring oil countries.


Kuwait's population of about 4.5 million people complain about the deterioration of infrastructure and public services in the country, which owns about 7 percent of the world's oil reserves. Its sovereign wealth fund is one of the largest in the world.


Kuwaiti businessman Ahmed Al-Sarraf says, "I am not reassured, and I feel great anxiety about my family, the future of my grandchildren, their education, and my health, because hospitals do not provide adequate treatment, even though I am financially capable."


These complaints contrast with the situation in neighboring countries such as the UAE or Qatar, where the quality of life has improved significantly in recent years thanks to the influx of foreign investment.


"The state's identity was liberal when Kuwait was creative and open in the eighties," Al-Sarraf recalls with regret, adding, "While we went out, countries grew around us."


In an indication of its declining attractiveness, Kuwait ranked last among 52 popular destinations for foreign expatriates in the annual survey of the International Organization in 2022, while its neighbor, the UAE, ranked sixth.


In contrast to other Gulf states, Kuwait enjoys an active political life and a strong parliament, though the keys to power remain primarily in the hands of the ruling Al Sabah family.


Ministers are often appointed from the royal family, but some soon face questioning in parliament amid accusations of mismanagement and even corruption.


These constant tensions between the executive authority and parliamentarians, which led to the change of many governments and the dissolution of parliament several times, impeded any attempt at reform and reduced the appetite of investors.


Researcher at the Arab Gulf States Institute, Christine Diwan, believes that the problems of governance in Kuwait are reflected in "the failure of planning and the increase in social difficulties."


Gulf economist Justin Alexander notes that the country has "very little debt, the world's largest sovereign wealth fund as a percentage of GDP, and the world's largest oil reserves per population."


However, "the political imbalances in recent years prevented it from taking the necessary measures to control the increase in spending, generate non-oil revenues, and diversify its economy," according to the expert.


The country, which suffered from a large budget deficit during the Covid-19 pandemic, has rebounded with the rise in oil prices, which account for 90 percent of its revenues, in the last year.


As Kuwait, led by 82-year-old Crown Prince Mishaal Al-Ahmad Al-Jaber Al-Sabah, struggles to implement a reform plan approved in 2018, neighboring regimes, led by a new generation of officials, are multiplying projects to diversify the economy and reduce dependence on black gold.


The last government promised to deal with important issues such as development projects and the fight against corruption, but it resigned on January 23, after only three months of its formation, and then this month the parliament, which the opposition occupied the majority of its seats, was dissolved due to “mistakes” in the decision to dissolve the parliament that preceded it. .


Parliament was preparing to pass a controversial bill requiring the state to cover consumer and personal loans contracted by Kuwaitis, to the dismay of the government, which considered the measure too costly.


"As in many Western democracies, Kuwait's semi-parliamentary system suffers from social divisions and populist demands," says Diwan.


Kuwaiti analyst Bader Al-Saif wrote on Twitter, "The Kuwaiti street is exhausted," denouncing the "permanent stalemate."


"Politics in Kuwait needs to be reset," he added, calling for "a national dialogue and a new constitution."

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Kuwait's political crises hinder its quest to catch up with the growth of its neighbors

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