How much longer this dilemma?

This news has been read 8101 times!

Ahmed Al-Jarallah – Editor-in-Chief, the Arab Times
Ahmed Al-Jarallah – Editor-in-Chief, the Arab Times

EUROPEAN countries faced a series of crises after the Second World War as a result of six years of destruction, killings and squandering of wealth. The requirements then included rapid reconstruction to provide shelter to millions of displaced and homeless people, in addition to ensuring employment opportunities for jobless soldiers.

At the time, these countries relied on the private sector to continue providing basic services like water, electricity, transportation and paving of roads among others. They asked the private sector to provide electricity, water, transportation and even management of public facilities such as airports and ports.

This step changed the nature of the national economy. It made the economy more productive, because an investor wants to make profits and knows that the quality of service increases the chances of expanding the customer base. With this background, the European countries triumphed over the crises in less than a decade. They improved the performance of their institutions whose functions were limited to maintaining internal security, defense, foreign policy, health, education, justice, collection of taxes and other tasks of the State.

The companies that took over services changed the source of income of the State as most of the profits came from management of services, while the public sector functions based on the ‘rentier’ concept by collecting less. In all communities, this concept is a breeding ground for corruption and squandering of public funds.

Since around seven decades ago up to this day, privatization has developed and has become common in all countries. However, some countries such as Kuwait, are still stuck in the merry-go-round of the ‘rentier’. Until now, Kuwait has not been able to get out of the economic crisis hole due to its total dependency on oil and monopoly of services. Other GCC-member States have embarked on a phase of relieving citizens from the ‘rentier’. They assigned tasks related to services to stock companies in which citizens share the ownership such that consumers have become owners so they will be concerned about increasing profits for their companies. Consequently, they adopted the idea of conserving electricity and water as well as maintaining public facilities because they are partners in ownership as is the case in the United Arab Emirates which has been a pioneer in this field.

The Kingdom of Saudi Arabia, Bahrain, Oman and Qatar are seeking to abandon the absolute rentier economy. It is then perplexing why Kuwait has become irregular in terms of this rule, as if agreeing to stay on the horns of a dilemma to solve the crises which would have been possible through the participation of the private sector in the management of its assets especially since the State has failed to do so. This failure is reflected in the fact that even road paving projects and improvement of public facilities are not executed within the deadline. If the excuse was the weak slogan, “Nature of Kuwaiti community is different from others,” then we have to ask if the electricity being obtained by the British, Americans, Swiss or Emiratis does not suit Kuwaiti customs and traditions, or the water there is socially different from here.

It has become necessary for the State to know that there is no exit from the crises unless there is development in the world economy by assigning management of services to the private sector. This is in addition to eliminating veiled unemployment in ministries which leads to more squandering of money, corruption and use of ‘wasta’ (influence); thereby, worsening the crises and backwardness of the country.

By Ahmed Al-Jarallah

Editor-in-Chief, the Arab Times

 

This news has been read 8101 times!

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