Prime Minister, maximize the role of ‘Social Security’

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WE have heard a variety of rhetoric and many slogans about improving the economic situation; but in reality, nothing has been done in this regard. However, it seems that words are the main objective, not action. This is how the picture looks like in the country, because no one — whether in the Council of Ministers or even the National Assembly — is thinking about what could be beneficial for Kuwait and to address the deficits in more than one sector.

Ahmed Al-Jarallah

For instance, for years, we have been hearing about an actuarial deficit in the Public Institution for Social Security; which has reached more than KD 24 billion, as it increases every year with the increase in the number of pensioners. The government has tried to cover some of the debt it owes to the institution by granting it land in a number of areas; the value of which amounted to about KD 2.5 billion, that is, in fact 10 percent of the deficit. On the other hand, waste land owned by the State is valued at about KD130 billion, according to expert estimates. Since ‘Social Security’ is part of the State, covering its deficit is a necessity in order to improve economic activity.

This can be done by granting the institution more land to invest in like the construction of buildings and residential houses and then selling them; as well as commercial markets, entertainment places or labor cities and other investments that will have a positive impact on a wide segment of retired Kuwaitis who will be partners in those profits. Thus, such investments are a contributing factor to the revival of the national economy.

They could even generate a lot of profits that cover the deficit, and then turn into profitability. In all other countries around the world, this type of institution invests its revenues at home; and sometimes abroad with inkind assets, to form an umbrella that protects it from deficits in the future. This is the practice in France, Germany, Norway, Britain and even some Arab Gulf states, because the primary goal is to develop the national product, not the personal interests of the so-called deep State, which does its best in Kuwait to employ everything for its interests, and to prevent any solution that could affect its local trade in real estate and others.

Apparently, the State will not fill up the institution’s actuarial deficit, and the land granted to it is a kind of bribery in exchange for the National Assembly’s approval of the KD 3,000 grant that was approved in the year 2022 as part of a political deal.

Nevertheless, it must be said that deals at the expense of the citizen and the economy always lead to more deficits. In this regard, it is possible that ministerial instability and the permanent conflict between the Council of Ministers and the Parliament could be an obstacle to putting forward any feasible ideas or developing realistic plans. Consequently, no one pays attention to improving the economic cycle, which is why the deficit continues, and thus, the decline continues, while the power of the deep State increases, as if it is the only planner and advisor to the authorities; rather it is the entire brain.

Without a doubt, filling up the actuarial insurance deficit by granting the institution more land on the condition that it is invested in whatever enhances the national product is the first step towards building a strong national economy. This is due to the fact that such move indicates seriousness in dealing with other crises; especially in creating a reliable industrial and service infrastructure, as it is being done in all other Gulf countries.

By Ahmed Al-Jarallah
Editor-in-Chief, the Arab Times
[email protected]

This news has been read 944 times!

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