Kuwait implements open economic principle
Sheikh Sabah makes timely, competent decisions
This is the 18th in a series of articles on His Highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, pioneer of the political development in modern Kuwait and 15th ruler of Kuwait.
Special to the Arab Times
Knowledge is power, especially when combined with wisdom and far-sight.
No government, no political system, no constitution, no charter or state is permanent, indeed it must undergo changes according to the exigencies of the time they are passing through, which prompts the implementation of innovatory alternatives for survival.
Every social and political problem is interwoven with other problems: for example problems of economy affects work, education, family life and myriad other aspects of social life; attempting to solve each problem on its own at the expenses of others, only leads to a confusion that creates more problems, often worse than the original ones.
Pondering on this fact Sheikh Sabah Al Ahmad felt that a greater cooperation was needed in making timely and competent decisions for a sustainable development in the economic and in social factors, especially when the reduction of the oil revenues prompted a vigorous response to meet the challenge.
Hence soon after he was appointed Prime Minister on the 13th of July 2003, HH implemented the “open economic principle”, meant to spur the role of the private sector and amend its inefficiency through a more congruous leadership and overcome the losses suffered during three decades of tension, open hostilities and the Iraqi invasion of 1990-91.
At the same time HH the Sheikh pioneered a diplomacy programmed to boost the economy of his country and that of the Arabian Gulf countries through enhanced regional cooperation, and integrating the activity of every ministry: foreign affairs, finance, defense, commerce, transportation, industry, agriculture and so forth, making each responsible of its own field of action.
Integration
Such an integration was aimed at producing orderly, holistic programs that could save money, resources and opportunities, instead of a confusion of wasteful, contradictory and self-canceling decisions hindering their function and causing drag in the whole system.
Fully aware of the emerging future engendered by new world views, staggering innovations and technological breakthrough, the Sheikh made good use of his political and diplomatic experience gained through his long diplomatic career, when he started his tour aimed at promoting a national economy on new grounds.
His first objective was a tour of the most technologically developed Asian countries with an infrastructure that could meet the requirement of projects verging on economic developments in government and private sectors and it had good potentials for joint investments and market exchange.
In July 2004 HH Sheikh Sabah Al Ahmad traveled to the Far-East heading to China with a large retinue consisting of the ministers of finance, of foreign affairs, of commerce and industry, and of energy.
Also accompanying the delegation were the heads of civil service agencies: the Kuwaiti Fund for Arab Economic Development, of the Kuwait Institute of Scientific Research and of the Environmental Public Authority.
Part of the group was also a delegation representing the private sector — the Chairman of Kuwait’s Chamber of Commerce & Industry, the Kuwaiti media “KUNA” and the editors in chief of the various Kuwaiti newspapers, as well as a panel of specialists in the diplomatic and economic fields.
On the 5th of July Sheikh Sabah Al Ahmad was in China carrying out bilateral agreements in the fields of economics, trade, environment and the Sheikh Sabah Al-Ahmad Al-Jaber
Al-Sabah oil, and spurring the cooperation of both countries in joint projects in trade and industrial sectors and encouraging marketing operations.
Following the talks between the GCC ministers of finance and the Chinese minister of trade, the Sheikh sponsored an economic bilateral agreement concerning trade, investments and technology, and made feasible the prospect of establishing a free commercial zone between China and the GCC.
Development
Leaving China on the 12th of July Sheikh Sabah Al Ahmad went to Japan, whose relations with Kuwait date back to the year 1958, when Japanese entrepreneurs visited the country to take part in the production and development of Kuwaiti oilfields.
During that visit, the Sheikh met his counterpart in Japan to exchange bilateral cooperation in the economic field.
Mutual cooperation was further strengthened in other meetings during which were established multi-levels economic relations that involved the exchange of specialists and investments, and strengthened the cooperation of both sides in the development of gas and oil.
During those meetings was also discussed the possibility of establishing an office for international investments in Tokyo.
Sheikh Sabah Al Ahmad was particularly satisfied with the Japanese cooperation in the field of scientific research, and with the “Japanese-Kuwait cooperation initiative” on issues concerning the transferring of technology and on environmental protection.
The next visit in his agenda was South Korea on the 14th July (2004); there Sheikh Sabah Al Ahmad strengthened mutual cooperation through agreements that encouraged and safeguarded investments on both sides.
Kuwaiti entrepreneurs invested millions of US$ in the financial and banking sectors; currently more than hundred South Korean agencies are operating in Kuwait .
The last leg in the tour was Singapore on the 16th of July 2004. There too the bilateral agreements on economic and technical cooperation signed by the ministers of trade of both countries strengthened mutual cooperation; while a mutual-aid protocol, signed by the Kuwait Chamber of Commerce & Industry with the businessmen of Singapore, facilitated joint investments in private sectors.
The result of the tour was then studied and taken in full consideration; incidentally this was the first step in HH Sheikh Sabah Al Ahmad — scheme of setting the national economy on an open, free plane of action, serving the overall infrastructural development in meeting the growing population and urban expansion.
The next objective was to benefit the national economy with a diversity of sources of income and enhance Kuwait’s role in the matrix of international trade.
Social issues relevant to the lives of his people: health, education and housing, besides the environment and the oil have always been at the top list of the Sheikh’s priorities in his weekly meetings with his cabinet of ministers and experts.
Though Sheikh Sabah Al Ahmad’s role as Prime Minister was short live, in the brief span of three years he carried out the innovation of schools and hospitals, new ones were built; the Kuwait University was radically restructured and expanded and new public utilities were put underway.