‘Kuwait financial status stable’

‘Things to improve after crisis’

“I WOULD like to speak very briefly, because economics is a heavy burden for some people,” columnist and Kuwaiti former ambassador Ahmad Al-Dawas wrote for Al-Seyassah daily.

“Recently, a rumor has spread among citizens and expatriates that the salaries are at risk because Kuwait’s revenues have decreased due to the drop in the price of oil, after the outbreak of the corona epidemic.

“However, following the outbreak of this epidemic in China, the airlines were physically affected, as people no longer boarded aircraft and demand for oil receded, so oil prices decreased, but after the epidemic has subsided and removed, there will be high demand for oil, and its price will rise to its previous state, to about $60 a barrel, and perhaps more, because airlines and other factories will be thirsty for more oil, as they were in the previous period were closed and achieved huge losses.

“The other thing I would like to talk about is that the International Monetary Fund rushed and asked Kuwait to impose taxes on companies and the wealthy and fix wages.

“But it is needless to say the advice of the IMF is not always right or sound, as there are defects in the performance of the international institution and the World Bank.

“In this context it is known that the IMF was established after the destruction of the Second World War, to ensure the financial stability of countries, its economic growth and stability of exchange rates, and to remedy the imbalance in the problems of balance of payments and international financial crises.

“However, the IMF members consisting of 189 countries and its financial balance are $667 billion, but its reform programs have failed with respect to Argentina and Ecuador and it has found difficulty in negotiating a program for longterm stability in Ukraine, that its austerity measures were protested by the people of the world, and that the countries that implement its programs deteriorated when their domestic spending diminished.

“Meanwhile, we would like to say here that the IMF policy towards Greece and Argentina has been mistaken, and there are analyses that believe that the dictates of the Fund and the World Bank were the causes of high prices and widespread poverty and unemployment.

“The British magazine ‘The Economist’ says that the chairman of the fund is Bulgarian Kristalina Georgieva. She took office in October 2019, and she witnessed the huge inflation in Bulgaria in the nineties which swallowed her mother’s savings within a week.

“However, Georgieva became the head of the IMF as she was considered worth managing the fund but a few months after her presidency, she dismissed two competent employees, and decided to end the work of David Lipton, a good management director.

“The magazine says ‘It is strange that the new president has traditionally not worked on administrative changes. The reforms of Ms. Georgieva give the opposite of the desired results, and perhaps it comes after the sacked Mr. Lipton is succeeded by a person who is less efficient than him, and that the performance of the fund will be weak if the performance of its employees is poor.’

“I know that there was a meeting between the Organization of Petroleum Exporting Countries (OPEC) chaired by the Kingdom of Saudi Arabia, with so called ‘OPEC Plus’ on April 6, 2020, online in which Russia and America took part but the economic situation will improve after the corona crisis is over, as previous epidemics in history, and Kuwait’s financial situation will improve accordingly.

“We conclude from this that the country’s financial situation is stable, God willing, but we are still looking forward to get out of the plight of the corona epidemic with lessons that benefit society, such as the necessity of establishing pharmaceutical and food industries, and reduce the huge number of expatriates, as it shows how important certain professions are to the country, and the good role of Kuwait’s youth in serving their homeland.”

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Al-Dawas

“In a previous article we had said that the Public Debts Law which was referred by the government to the National Assembly to allow the government to borrow up to KD 20 billion is rejected by us unless the government clarifies its policy how the prospective loans will be disbursed and what are its plans and future economic visions without touching the salaries of the citizens, because the latter has no source of income except these salaries,” columnist Zayed Al-Zaid wrote for Annahar daily.

“Unfortunately, many readers don’t know that the problem of the State budget, the stipends and the drop in oil prices, because in the State of Kuwait it is the recurring problem because this problem surfaces during every economic crisis or in the wake of a drop in the oil prices, but this problem disappears immediately following the soaring of the price of a barrel of oil barrel which is the nation’s sole source of income.

“Anyway, this problem is linked to the government mentality because it lacks the long term planning, and this mentality is based on reaction that surfaces when any ordeal surfaces.

“And if the government is involved in planning, its first objective should be directed to the pocket of the poor citizen who depends on the salary for everything and in accordance with the policy of the ‘veiled unemployment’ which entails that the state must employ all those it does not need motivated by the state policy of distributing the wealth among citizens to meet their expenditures.

“But if the government has a bit of planning policy or respect for the citizen, then it would have implemented what was recommended by some consultants who the government paid millions of dinars for advice including the former British prime minister Tony Blair who was shocked about the volume of the wealth of state in addition to the major and successful which he said could represent a second source of income for the state.

“Or if the government hastens to resort to the solution which all governments in the world resort to from East to West – the imposition of a fair tax on the country’s big firms which benefit from the State rendered facilities without paying tax or forcing them to employ a sufficient number of the citizens.

“But if the government wants to contain the ‘veiled unemployment’ where it alleges that the latter is the reason for inflation of the salaries item, then it must set up integrated economic and educational plans that are capable of comprehending the big energies of the country’s youth and direct this energy in the field of investment and the industrial sectors supported by the government. But the question here is, is the government serious in this regard? Anyway, I would like to leave the answer to the respected readers.

“In conclusion, I want to point out that the history in Kuwait always repeats itself sarcastically. However, this presumed crisis can be handled in two ways – the first by following the soaring oil prices and the second by resorting to borrowing and buying more time, until the oil prices soar again to allow the situations to remain unchanged.”

“In light of the critical circumstances in the world due to the repercussions of coronavirus pandemic, all the countries have started taking various preventive and remedial measures, and the citizens’ share in it is prominent,” Fahad Abdul Rahman Al-Mojil wrote for Al-Seyassah daily.

“Kuwait, like other countries in the world, today stands ready to protect citizens and residents in order to preserve their health from this mutated virus.

“In this regard, everyone, both inside and outside Kuwait, praise the measures implemented by the State represented by all its ministries particularly Ministry of Health and Ministry of Interior. Citizens involved in this battle against the virus have played a prominent role, both in raising awareness and committing to the health and preventive advice, and in participating in the volunteering programs initiated by Kuwaiti men and women.

“Therefore, the State has played its role, and is determined to accomplish its work with a high degree of distinction. It issued a set of precautionary decisions aimed at protecting citizens and residents and limiting the spread of the virus. It suspended studies for all academic levels, canceled events, and monitored prices of commodities, ensuring availability of necessary medical devices. Also, movie theaters, wedding halls and all places of gathering have been closed.

“Based on this concern for the health of citizens expressed by the State through these procedures, the role has come for the citizens to support its efforts in facing this urgent health situation by exercising their national role. It begins with limiting gatherings for social occasions such as condolences, merriment and attending burial ceremonies. This is because they all constitute a kind of gathering that would negatively affect the efforts exerted by the State through the preventive measures.

“Kuwaitis form a small community whose people are closely related by blood, tie and relations. Therefore, funeral occasions are usually crowded with mourners, as well as occasions of joy. Undoubtedly, this is good and desirable; but in light of the current health conditions, wisdom requires a review of these social customs, and organizing attendance in a way that ensures health and safety of all.

“We know that limiting social duties in Kuwait is an issue that may be difficult for most people, but the current conditions are stronger and greater than courtesy at the expense of the health of individuals and citizens.

“I hope this article is not misunderstood or considered as an invitation to cancel condolences, God forbid, or stop weddings, but it is an appeal to everyone to consider the fact that the entire world is witnessing a frightening outbreak of this virus, and Kuwait is no exception.

“May God protect Kuwait and its people from all evil and hatred. May He protect you and me from the events of the days and their disasters. May you all remain healthy and well.”

“The coronavirus (COVID-19) pandemic took us by surprise and led us along an endless path, to the point where the question, ‘how did you do before the corona era?’ is being asked, similar to the question asked after the era of the horrific invasion: how are you before the invasion and how are you after it…,” columnist Professor Ghanim Al-Najjar wrote for Al-Jaridah daily.

“Professor John Barry of Tulane University, New Orleans, and one of the leading historians of epidemics such as the 1918 flu pandemic, maintains that overcoming the pandemic is by persuading people with two things: social distancing, and transparency and honesty in communicating the information.

“In other words, medical procedures in the case of corona, the unknown virus, are important and basic but without the cooperation of the people and silence of the politicians, agitators and ignorant people, such procedures will not succeed in stopping the spread of the disease.

“Bearing in mind that what has been said about fatal errors in allowing freedom of movement and not stopping aircraft and arrivals, which the government has neither denied nor confirmed, has unfortunately turned into an exchange of credal and sectarian accusations, which has no place in this framework.

“There are three factors that led to the abhorred sectarian retreat. The first is the government taking a leading role and assuming responsibility consistent with the World Health Organization’s guidelines, which left people unbelievably amazed that it is the same government that is do so.

“As for the second factor, the escalation of the crisis internationally, the infection rate of major countries and their shortcomings became clear. Consequently, the issue went beyond a simple evaluation of a small country like Kuwait. The third factor is the transformation of the issue to a national situation around, in which people rally in defense of their community.

“The honesty and transparency of information is no longer a marginal issue, and even if the authorities resort to harsh measures such as curfews, the people cooperate. When we say honesty, then the authority (whatever its name) must tell the truth even if it is frightening, without filtering or diplomacy.

“Martial law is more comprehensive than curfew, and Kuwait remained keen not to announce it, even in the darkest circumstances such as the explosions in the eighties and attempted assassination of the late Amir of Kuwait Sheikh Jaber Al-Ahmad, or the 2003 war.

“Such step was announced only twice in Kuwait’s constitutional history, the first during the 1967 war for only three months, the second is after liberation for only four months, and finally lifted on June 26, 1991.

“Curfew within a limited legal framework to preserve the health of people must be accompanied by a greater flow of information to address rumors, because measures of this nature will depend primarily on the cooperation of people.”

“Weaknesses and strengths were revealed to us after the sudden invasion of ‘corona’, in addition to the appearance of accumulated corruption, useless perceptions and rigid legislation. Nevertheless, it also led to the discovery of promising energies and upward volunteer action,” columnist Qoutaiba Al-Saeid wrote for Al-Rai daily.

“Governmental measures and popular campaigns contributed to resisting this epidemic and limiting its evils, especially the curfew and its severity. Despite that, we say ‘the pleasure and thrill of victory will erase the harshness of the curfew’, but what if we had, in addition to these preventive measures, a solid and well-equipped health system to deal with disasters?

“From this standpoint, we have the social responsibility to stand up to this crisis and its consequences, as the government has the highest task to deal with these accumulations that led to health and economic shock. Since the crisis generates vigor as it reaches the summit and preservation of the nation, the crisis requires skillful management and national cooperation. Therefore, we must invest in this.

“In spite of our optimism, the State must expect the worst and spread of the disease. This, in turn, requires new solutions, such as adding various types of preventive protection, including the establishment of health examination centers in all regions, allowing factories to maximize their capabilities to manufacture medical and preventive equipment, and allocating agricultural areas for the production of basic crops to achieve food security and self-sufficiency.

“One of the requirements of the current stage is to pay attention to private sector employees, as they face reduced salaries and termination of services. Where is the justice? Their wages must be guaranteed in the same way as government employees, either by spending what has been reduced by companies as Saudi Arabia has done or issuing a special law to guarantee full treatment for them.

“As for the future, the State must contribute, for example, to investing in successful sectors in order to create job opportunities for them, because caring for the individual is a way of saving the country from failure and revitalizing the economy.”

— Compiled by Zaki Taleb