Why Kuwait’s political infighting is leaving its economic plans on ice

Why Kuwait’s political infighting is leaving its economic plans on ice

Political infighting between the parliament and government has forced the resignation of two cabinet ministers in less than a month and threatens to draw in more of their cabinet colleagues.

June 15, 2012 6:25 by Reuters

Kuwait has posted fiscal and external surpluses for thirteen years in a row and can absorb the current fall in the oil price despite its large spending plans. Crude traded under $100 a barrel last week.

But analysts say this level of comfort means it lacks a sense of urgency to implement the development plan and longer-term reforms.

Kuwait is not translating its healthy fiscal position into economic progress, said economist Jassem al-Saadoun, director of the independent al-Shall Centre in Kuwait. (editing by Ron Askew)

By Sylvia Westall and Ahmed Hagagy

Pages: 1 2 3 4

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1 Comment

dismanirie on June 16, 2012 1:18 pm

Why is a parliament required if the emir can pick the prime minister who then appoints the cabinet? What a waste of energy and money.

Either move to a fully democratic system, where the emir remains head of state and the government is elected by the voters, or revert to the old “benevolent dictatorship” model, and convert parliament into a sort of Shoura Council, which can give opinions reflecting electorate concerns but is powerful to influence decisions.

Kuwait has lost decades of growth and development as a result of its poorly conceived “democracy”.