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Monday, September 01, 2025
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Maximizing the gross domestic product requires quick decision

publish time

31/08/2025

publish time

31/08/2025

Maximizing the gross domestic product requires quick decision

FOR the first time, observers could sense ministerial discipline within the Cabinet. This is crucial for the wheel to move according to plan on the path toward the long-awaited development, especially since the government no longer faces obstacles to the implementation of the plans of His Highness the Amir Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah regarding the advancement of Kuwait and the restoration of its leadership status. Indeed, in the past, several obstacles prevented the executive authority from achieving its goals unless they were consistent with the wishes of MPs or those they represent, or did not meet the goals of voters. We witnessed a significant decline in all development projects as a result of the traps set for ministers and the entire government.

This caused many laws to languish in the drawers of the National Assembly for years, while legislation that served certain groups was passed. This burdened the State budget, making it fall into a huge deficit. At some point, everyone noticed the announcement of the Cabinet that liquidity was nearing depletion due to unreasonable spending under the slogan, “Do not touch the citizen’s pocket.” On the other hand, there was an indirect hit to the budget through the economic contraction and limited commercial activity, which raised inflation rates and left citizens with a huge deficit, particularly since around 85 percent of the citizens are working in the public sector. Despite warnings about the surplus of random hiring, this trend continued, with the first chapter of the budget reaching a figure exceeding the salary of a major country.

Yet, there were no attempts to boost the gross domestic product (GDP) and stop from relying solely on oil as the primary source of income.

Meanwhile, no development was made to plans for sovereign wealth funds and other funds which, if properly utilized, could have been the primary source of national income. We have written several times about the fact that salaries have not increased for 16 years, while the retirees’ voices are rising regarding the insufficiency of their pension. In the meantime, the Public Institution for Social Security (PIFSS) has a financial surplus in spite of the actuarial deficit. The number of retirees increases annually, hence, the need to search for ways to provide these people with the capacity to spend, taking into consideration that oil prices are declining, with a loss of about 40 percent in recent years. This necessitates exploring other sources of income to bolster public finances.

The Social Security Fund and other funds are important arms of the development process, provided there are capable minds to put funds into investments with lucrative returns -- first domestically and second externally as long as they are guaranteed. This is similar to the Norwegian Pension Fund, which has become the largest sovereign wealth fund in the world, thanks to the management mindset of preventing its exploitation, whether for employment or otherwise, so that it can continue to grow as planned.

In Kuwait, we must acknowledge that things are different due to outdated slogans, which lay the foundations for negative development, not positive. Slogans, such as “This is our son,” have opened the door to the exploitation of all State institutions and resources for direct and indirect plunder, as if the nation is just a temporary stopover. This has led to corruption extending to traffic violations and drug smuggling, along with the lack of conscience.

Therefore, when the Ministry of Interior announced today the discovery of fraud networks and other activities, it is no longer surprising. The government has the opportunity to implement major development projects and utilize local funds to establish an effective economic system, while eliminating those who hinder progress. It must lay down good plans to train citizens in professional skills to eradicate the overabundance of public sector employees, as the case in civilized countries. All of this is possible if the intention is sincere and the government takes advantage of the ministerial discipline.