THE government, with its chain of precautionary measures aimed to protect the local economy, has touched the nucleus of the crisis the country is experiencing, just like the entire world, due to the coronavirus pandemic. There is no doubt that these steps require more procedures to assist the private sector establishments that continue to play their role alongside the public sector in combating the current crisis through further support.
In addition, it is essentially imperative to ensure factors for continuity of the national industries, as done by many countries that granted this important pillar of the national economy numerous facilities to encourage growth in their role.
This package came in the absence of parliamentary frictions, and the government did not mind the endless theorization in the social media platforms and blogs. It seems as though the bloggers are connoisseurs of global economists, when in reality they don’t know their right from left. Yet, they continue to interfere in sensitive issue. Because of this, the ministers are on the right path for ignoring the circulation of their blogs, especially those related to financial recommendations.
It is true that the massive financial reserve will help Kuwait withstand the crisis for more than five years, and the oil reserve will provide more money, even if the price of one barrel of oil falls below $20.
However, this does not mean frequent escape from facing the factual admonitions presented by the local and international specialized financial institutions. In a way, that cannot happen without imposing taxation on wealthy persons, big companies and luxury goods. This action has become inevitable after exiting the coronavirus crisis, but it must be exhaustively studied to avoid overwhelming the national economy or public finance.
For the first time, government decisions favor small enterprises and motivate further work. It is not spending money wrongly, and long-term loans for various types of establishments will no doubt move the wheel of production in the right direction.
Kuwaiti economy has proven to be strong in the past decades, even during the most trying period, and it has massive immunity to absorb shocks. Therefore, the current catalysts are not forever, based on the principle that “Your white shark will be useful to you in the dark day”. It is even unacceptable in the dark day to convert expenditures into wastage of public fund or for government to be submissive to the lawmakers or bloggers who used to challenge the ministers at will in the past, while the latter would succumb or stage unfair campaigns against them to the level of using constitutional tools. The government should rather remain resolute in its position to deal with the crisis based on clear vision in accordance with expert opinion.
By Ahmed Al-Jarallah
Editor-in-Chief, the Arab Times