Pension funds around the world vary widely in how they are managed and how their assets are handled. While some funds are efficiently run and prudently managed, delivering strong annual returns, many others suffer from persistent deficits caused by inefficiency, poor management, or corruption. However, adopting strategies from others is a sign of strength rather than weakness. Sound management practices, including those related to pension funds, along with effective legislation, have been successfully shared and implemented in many countries.

In countries such as the Netherlands, Japan, and Switzerland, pension funds have become major contributors to national economic output. Their success lies in diversifying investments rather than relying on a single model, enabling them to generate substantial annual returns despite a growing number of retirees. A vision for comprehensive development is needed to eliminate the persistent actuarial deficit in social security systems, a problem for which no lasting solution has yet been found. These structural problems are not unique to any one country. With assets exceeding KD 45 billion, the Public Institution for Social Security has substantial capacity to invest locally. Such domestic ventures generally carry lower risk than foreign investments, some of which have resulted in huge losses, including the refusal of banks in Lebanon to return two deposits totaling USD 347 million.

By focusing on local investments and benefiting from strong leadership and expertise comparable to those managing successful pension funds worldwide, the institution can strengthen the national economy through a range of strategic projects. These include housing projects such as building complexes suitable for small families, as well as infrastructure projects along highways that could generate toll revenue. It can also invest in state-granted land allocated to address the actuarial deficit, which is yet to see any development. Furthermore, constructing warehouses and rental shops could stimulate commercial activity and benefit the national economy.

Kuwait faces a growing challenge as the number of retirees, currently estimated at around 200,000, continues to rise. This necessitates a clear and proactive investment plan, including seeking international expertise, if necessary, to avoid a future deficit caused by weak financial management. The institution’s performance in past decades has been severely undermined by deep-rooted problems. These harmful practices include outright embezzlement, which became one of the major scandals of the 20th century, as well as nepotism in appointments based on favoritism, persistent interference from influential figures and members of parliament, and the notion that public employment is an entitlement rather than a responsibility. This notion, often described as the citizen’s “share of national wealth,” represents a particularly harmful form of corruption that has affected not only the Public Institution for Social Security but state institutions as a whole. As a result, the fund has been rendered largely ineffective, despite the urgent need for it to function as a strong economic engine. In contrast, other countries have strengthened similar funds, realizing that their financial stability depends on diversifying income sources rather than relying on the sale of a single commodity such as oil. Unfortunately, Kuwait continues to issue statements without translating them into tangible outcomes.