KUWAITI voters are now capable of choosing candidates based on their qualifications and ability to represent their constituents in the Parliament, says MP Ahmad Lari. Lari also expressed his satisfaction over the results of the elections which, he believes, is an indication that people are keen on the implementation of political reforms. He feels his success in the last elections, as well as that of Adnan Abdulsamad in the First Constituency, is a result of the wise decision of voters. “The five constituency system was approved to pave the way for bringing the entire country under a single constituency, which is aimed at ending electoral corruption and strengthening Kuwait’s democracy,” Lari opined, adding that the single constituency is the most ideal system.
Lari stressed Kuwaitis are hoping the incumbent government will not repeat the mistakes of its predecessors and find effective solutions to the current problems of the country. Besides the political system in the country, Lari also touched on a number of issues, particularly the effect of the global financial crisis on Kuwait’s economy, during his interview with the Arab Times.
Q: As member of the parliamentary budget, finance and economic committees, you are aware of the effects of the global financial crisis on Kuwait Stock Exchange (KSE). What steps were taken to address this crisis?
A: Based on reports published since the end of 2007 till date, the drop in the KSE index is very minimal compared to other stock markets. KSE has, so far, declined only by about 5 percent while the Tokyo, Japan bourse fell by 45 percent and some bourses in GCC like Saudi Arabia fell by about 30 to 40 percent.
We cannot deny the fact that the Kuwaiti bourse was affected by the global financial crisis but it will never reach the point of ‘collapse’, as speculated in some reports.
A number of proposals were presented to address the crisis, such as the merger among local banks – similar to what other countries have done. Calls have also been made to use Islamic banks in this situation. Many developed countries have seen that Islamic principles are safer and surefire tools in any economic transactions. Several people are also keen on depositing their money in Islamic banks to safeguard their capital. Traditional banks should benefit from the experiences of Islamic banks to lessen the impact of the global financial crisis and overcome their problems safely.
Q: Do you believe the Kuwaiti economy is strong enough to weather this crisis?
A: The Kuwaiti economy and its financial markets are based on strong principles. The Central Bank of Kuwait (CBK) has a continuous and contemporary monetary policy. It takes the right measures at the right time. Our economy is strong enough to rise above the crisis.
Q: What should Kuwait do to prevent the recurrence of the KSE crisis in the future?
A: The passage of the financial market authority law is important but it will not completely solve the problem. It is also vital to create an administrative board for the bourse because it is currently managed by one person – the KSE director.
Q: The international market is suffering from a credit crunch. How did this happen and what steps should be taken to protect Kuwaiti banks?
A: Due to inflation, the international credit line stopped moving while the local banks also suspended granting loans after the value of lending among Kuwaiti investment companies totaled $3.5 billion dollars. The state should intervene to ensure that the international credit line is working, invest in this field in case these credits are cancelled, and protect private companies.
Q: Many people believe the fourth refinery project will boost the economy. Why are some MPs against its implementation?
A: The problem lies in the legal aspect of the project. Technically, it is a feasible project touted to boost the economy but we have to look at it from a wider perspective, particularly the current situation in Iraq. There is more to it than meets the eye. We need to take a lot of things into consideration and carefully study all aspects of the project before giving the green light.
A number of controversial issues were raised on the legal aspect of the project. Some parties insist on referring the project to the Central Tenders Committee (CTC) while others believe it should go through the concerned ministry in accordance with the existing laws. If we take a closer look at the issue, we will realize that the problem is just a conflict of personal interests. Despite all the noises created over the project, the government is bent on pursuing it and everything seems to be falling in the right places.
Q: Kuwait’s financial surplus is increasing steadily due to an earlier upsurge in the prices of oil in the international market and it now stands at KD34 billion. Why is the government hesitant in addressing the problem of the soaring prices of commodities by granting salary increments to all employees as demanded by some MPs, instead of increasing the salaries of Kuwaitis by KD 50?
A: According to law number 49/82, the government should increase salaries every two years. Under this law, salary increment is related to the current living standard (inflation). We had earlier discussed this issue in the parliamentary Financial Committee and talks are ongoing with Minister of Finance Mustafa Al-Shamali in this regard.
Q: It looks like there is no cooperation between the Parliament and the government until now. Why?
A: The country has yet to embrace full democracy as well as the Parliament to form a government from a majority of MPs but some MPs are still working individually.
With regards to the government, it was formed without approval from the Parliament, widening a gap between the two authorities. The previous government is stronger than the current one, which seems to be gearing towards different directions, making it difficult to strengthen ties between the legislative and executive authorities. It is not surprising to hear that some people in the government are themselves trying to weaken the authority, resulting in confusion and instability.
Sadly, we also see the same scenario in the Parliament as MPs are also headed towards varying directions. Sometimes corrective measures are necessary to stabilize the situation but most of the time these measures are not enough.
Q: Is there a possibility that grilling will lead to a political crisis in Kuwait?
A: We have to accept the fact that grilling is a constitutional right of all MPs. However, it should be done for the sole purpose of calling the attention of erring ministers. However, this is not the case in most parliamentary inquests. Most of the time grilling happens due to a minor conflict between the two authorities or to settle political scores and this actually creates political upheaval in the country.
Q: Should we expect the grilling of some ministers in the next legislative round?
A: Earlier, there were heated discussions on the plans of some MPs to grill several ministers in the next legislative round but these talks were silenced by the financial crisis being experienced in the whole world. Obviously, this takes precedence over all other issues.
Q: Is there a possibility that the current Parliament will last until the end of its term?
A: Tension between the Parliament and government over a number of issues in the past recently calmed down due to the global financial crisis. Without putting much thought into it, both authorities somehow forgot their differences and are now working hand-in-hand to address the crisis. I hope this coordination will continue until the tenure of the incumbent Parliament ends.
Q: What are your views on human trafficking in Kuwait, considering it was under Tier 3 of the latest Trafficking In Persons (TIP) report from the US State Department?
A: MPs have deliberated on the issue in previous parliamentary sessions. Three months after the last session, we are still waiting for the government’s proposed measures. Once these measures are ready, we will meet with the government again to see if it has taken into consideration the recommendations of the Parliament.
Unfortunately, just like other issues, you can see some are working for their personal interests either in the economic or labor aspect, especially those who are engaged in human trafficking.
Kuwait is a democratic country that respects human rights. I hope the executive, legislative and judiciary authorities will work together to combat human trafficking, ensure that the law prevails, and protect people’s rights.
Q: Some expatriate workers, who participated in demonstrations staged earlier to demand better pay and working conditions, were deported to their home countries. Is this the right thing to do under such circumstances?
A: Everybody has the right to air their grievances. However, the workers went overboard this time. Some of them resorted to violence and destroyed properties. The government acted in the interest of the nation. The situation called for harsher measures on the part of the government to maintain national security. The workers should have used peaceful means to voice their complaints.
Q: The government fixed a KD 40 minimum wage for expatriate workers. Is this enough or there is a need for a further increase, considering the rising cost of living in the country?
A: Compared to previous wages, KD 40 is better. Kuwaitis are demanding a salary increase due to inflation and soaring prices of commodities, how much more for the expatriate workers? Salary increments normally undergo a gradual process. Expatriate workers deserve better pay in accordance with the current economic situation, not only in Kuwait but all over the world.
Q: How can the government solve the problems of Bedouns?
A: We should look into the legal and humanitarian aspects of the issue. On the humanitarian part, we have presented a draft law to grant human and civil rights to Bedouns, which includes the right to education, health, and employment. On the legal aspect, we need to evaluate the naturalization procedures to ensure that the Kuwaiti citizenship is granted only to qualified applicants.
Q: Should the government cancel the sponsorship system?
A: Personally, I believe the sponsorship system should remain but the government needs to closely monitor it to protect the rights of expatriate workers and ensure that the sponsors will not abuse them, especially the housemaids. However, others think it is better if the government sponsors the workers and recruit cleaning or security workers directly for its institutions, such as Kuwait Municipality and Ministry of Education.
Q: Why did women fail in the last elections?
A: Women just seemed unlucky in the 2006 and 2008 legislative polls. The dissolution of two successive Parliaments led to early elections and this worked against the women. In 2006, the odds were low for them because it was the first time they were allowed to exercise their political rights and many women lacked the required knowledge to gain political success. They fared better in the 2008 elections with one female candidate emerging in the 11th position. I hope they will finally succeed in entering the Parliament in the next elections.
Q: Has the lack of political parties negatively affected Kuwait’s democracy?
A: Political parties don’t fit in our system. Even if we have these parties, they will not contribute in implementing political reforms or achieving the desired objective. We acknowledge the fact that these parties are part and parcel of a democratic system but they just don’t fit in our political system. We have parliamentary blocs acting as watchdogs on the performance of the government. This is the real essence of democracy.
Q: What are your views on the status of Kuwait’s educational sector?
A: The standard of education in Kuwait has continued to deteriorate due to the absence of a sound educational strategy. A committee tasked to look into the educational system has yet to complete its task. The concerned authorities must take serious steps in this regard. We need to raise the standard of education in the country because it is the pillar of economic development.
Q: Does this imply that graduates from universities and colleges in the country don’t satisfy the needs of the labor market?
A: Yes. We hope the government’s five-year development plan will include steps to improve the quality of education – an important measure in preparing our graduates to meet future challenges and satisfy the needs of the local labor market.
Q: Should Kuwait adopt a more open economic policy to attract foreign investors, create more jobs and achieve national development?
A: An open economic policy is very vital to development but we have to be cautious in adopting this policy. Let’s take Dubai as a point in case. It has indeed opened its market to all and sundry but it incurred huge losses due to the current financial crisis in the international market because a huge percentage of the ‘hot monies’ or foreign currencies have gone out of the country. It is now facing a real financial crisis due to a drastic decline in its bourse and this is a result of too much openness to foreign investors.
We should come up with a comprehensive and carefully studied plan to determine the level of openness we need to adopt. In fiscal 2006/2007, Kuwait’s population increased by 400,000 and 320,000 of whom are non-Kuwaitis. Most of them are marginal workers. Kuwait is now struggling to reduce the number of marginal workers, who took advantage of its openness and flocked into the country, posing a grave threat to national security.
Q: Is Kuwait heading towards the realization of the Amir’s vision to transform it into a financial and commercial hub in the region?
A: Yes. It is included in the five-year plan of the government. I believe we will see the realization of this dream provided the government comes out with a suitable plan.
Q: What measures should the government take to develop the health sector amid allegations on the continuous deterioration of health services in the country?
A: Health issues are usually related to environmental concerns. Kuwait is grappling with environmental pollution, particularly gas emissions, residues from oil wells as well as the remnants of the Gulf War and an attack on Iraq by coalition forces led by the US. Most Kuwaitis are suffering from diseases caused by pollution, hence, we cannot put all the blame on the health sector.
Admittedly, there are pressing issues in our health sector. It has been 20 years now since Kuwait built a new hospital. The population has doubled but the five hospitals built in the 1980s are still serving the public. We are in dire need of additional medical services. We should also privatize a huge part of the health sector through the establishment of insurance companies to offer health services, especially those related to overseas treatment.
Q: The Overseas Treatment Department (OTD) is saddled with a multitude of problems and complaints. Some people have accused the department of giving preferential treatment to influential overseas treatment applicants and this practice has cost the state huge amounts of money. How can the government solve this problem?
A: The government should establish health insurance companies and grant full health insurance policies to all Kuwaitis. In this way, the insurance companies will handle overseas treatment issues and shoulder the expenses. If the private sector is given an active role in the issue, all problems related to ‘wasta’ and favoritism will end, sending only qualified applicants abroad for treatment.
Q: Kuwait enjoys strong ties with the US but the US administration had earlier issued a decision to freeze the assets of the Revival of Islamic Heritage Society (RIHS) – a Kuwaiti charitable society – based on allegations that it is funding terrorist groups. Please comment on this issue.
A: How do we define terrorism? The US and other western countries have, until now, failed to give a clear definition of the word. It seems that anyone, who is against their interests, is a terrorist. Before declaring that a group or individual is a terrorist, we should first sign an international agreement on the parameters of terrorism. Once these parameters are clarified, we can evaluate the acts of groups and individuals to determine whether they are terrorists or not. We should also respect the sovereignty of other nations and their social pillars to reach a certain level of cooperation in serving the interests of all countries around the world.
Q: Islamic preacher Sheikh Yusuf Al-Qardawi and General Secretary of Al-Salafi Movement Bader Al-Shubaib recently attacked General Secretary of the Shiite Clerics in Kuwait Mohammed Baqer Al-Sayyid Al-Mohri, as a Shiite MP what advice can you give to these Muslim scholars?
A: I don’t want to see conflicts amongst Muslim scholars. As Muslims, we deal with the same issues, such as those concerning Al-Quds and the liberation of Palestine. The US is putting pressure on many Islamic countries, including Afghanistan, Iraq and Lebanon. Shiites and Sunnis should unite to protect their existence, entity, security and stability against any Zionist attack. Zionists had repeatedly tried to control our wealth but their attempts went in vain. However, we should take the necessary precautions and we must not give them a chance to play their last card – the so-called ‘divide and rule’ card – by instigating sectarian conflicts. I don’t want to take sides. We should all focus on major issues.
By Abubakar A. Ibrahim
Arab Times Staff