It seems the current Cabinet seeks to consolidate negative development, not positive, whereby the State leverages the potential of the people and the private sector, as well as local and foreign investment, to diversify its sources of income and strengthen its economy amidst global changes. Conversely, nations aiming to stimulate their economies actively promote individual and collective initiatives, harnessing them as a foundation for regional and international power. The relevance of this statement is that the measures appear to encourage investors to offer incentives and stimulants to the State, rather than the other way around, as we noted yesterday.
The launching of private sector projects has been hindered by a series of challenges.
Over the years, regional issues, the COVID-19 pandemic, and most recently, an emphasis on minor violations in the industrial, agricultural and service sectors, have led to project disruptions and plot withdrawals. These factors collectively serve to inhibit the successful initiation of new ventures. In all countries aiming to regulate any sector, they open the way for investors to develop their projects and then issue decisions based on what helps them succeed, because they seek for sustainable development based on reducing imports, manufacturing materials within their borders, and even making them a global commodity.
On the contrary, it leads to further depletion of natural resources, mis-allocation and deterring investment in vital sectors, food security, and even infrastructure. Undoubtedly, this contributes to increased corruption, as those who benefit from the status quo reject any serious local competition. They want to circumvent the law, and engage in bribery and other forms of corruption, because more imports mean more profits. Thus, we see, for example, a near-open war on agricultural production.
On the other hand, there is something resembling a war on local manufacturing, even if it is minimal. Similarly, the construction of roads and other infrastructure is not a development project despite their importance. Meanwhile, developmental achievements by human beings appear almost nonexistent, despite much media coverage about them.
A few days ago, HH the Prime Minister Sheikh Ahmad Al-Abdullah chaired the regular meeting of the concerned ministerial committee to follow up the implementation status of agreements between Kuwait and China. He emphasized the importance of “attracting more Chinese investments.” This is a good point. But, do the decisions issued by entities concerned with economic activity in general facilitate this? In all countries around the world, governments encourage investors in all sectors -- roads, metros, health facilities or services. As we discussed yesterday, companies are granted significant incentives through the B.O.T. system, and there are no obstacles to their success, as the benefits are shared.
In fact, if a violation is found, it is not subject to closure. In the meantime, entities do not oppose diversifying activity, as long as it serves the economy. Some neighboring countries have more than one free zone, offering significant incentives to investors. This is also true in regular industrial zones, as the goal is to strengthen national industry, even if it is a simple manufacturing process. This, in turn, reduces the import bill, which drains funds that could otherwise be invested elsewhere.
Hence, today, there is an atmosphere of fear among the majority of the private sector in Kuwait regarding dealing with the public sector due to the demoralizing decisions it issues. Our current predicament with the Council of Ministers can be compared to the words of Abbasid Dynasty poet Mansour Al-Hallaj: He threw him into the sea, hands tied, and said to him ... “Beware, beware of getting wet.”
