Your Highness the Prime Minister, the economy cannot thrive, nor can the gross domestic product (GDP) grow, if there are barriers to commercial, industrial, service, and investment activities. The secret to stability lies in the exchange of benefits, especially between the public and private sectors. It is the private sector that should take the lead in development, exercising the freedom needed to propel the economy forward.
Empowering citizens to improve their livelihoods and increase their incomes is the cornerstone of social stability. However, this can only be achieved if the right policies are in place to create a strong state. The exchange of benefits depends on the opportunities provided by the state through exchange projects. This is where the concept of “B.O.T.” (Build, Operate, Transfer) comes into play. Countries like Vietnam, which emerged from a devastating war that lasted for decades, have used this model to drive economic growth. Today, Vietnam stands as a growing economic power, much like Singapore and many other successful nations. The governments of these countries do not compete with business owners for their livelihoods. Instead, they support struggling businesses, either through partnerships that enhance their strength or by providing energy and services at subsidized rates.
These governments also facilitate employment procedures in the private sector to help reduce unemployment. When faced with a budget deficit, they increase fees to serve the state’s best interests. In many countries, governments provide land, what we refer to in Kuwait as “plots”, for industrial, agricultural, or service purposes, based on a system of mutual benefit, and sometimes in partnership.
If a project requires development, the government helps boost investment activity or facilitates the inclusion of a partner to strengthen the project. These countries adopt an important principle - if a commercial project is hindered, the state does not benefit. It loses. However, when the government supports development, it is the first to gain, as it results in increased income and revenue from fees and taxes. In these countries, there is no room for envy, narrowmindedness, or obstruction for personal reasons. The prevailing philosophy is simple - “Let it pass, let it operate.” Markets are allowed to regulate themselves. Adam Smith emphasized the importance of allowing markets to operate freely without government interference, believing that markets self-regulate through the forces of supply and demand.
The benefit is mutual between individuals and the government. Citizens pay taxes and fees in exchange for services and efficient procedures. When the government imposes overly strict regulations, it creates challenges for businesses, leading to losses for everyone. As inflation rises and unemployment increases, it harms the country as a whole, not just individuals. In Kuwait, some government institutions have taken the opposite approach by revoking licenses and obstructing projects. Certain projects were initially granted to investors as desert lands, with significant investments made over 40 or 50 years of production.
Others faced difficult periods but managed to overcome them, with the beneficiaries consistently meeting their obligations by paying fees and annual rents. We must realize that global and regional conditions negatively affect businesses, as capital is inherently cautious. Despite these challenges, many countries encourage national investors, operating under the principle - “When you hear the roar of the cannons, start planning and building.” Other countries, such as Saudi Arabia, the United Arab Emirates, Qatar, and Egypt, have achieved stability and financial prosperity by launching successful economic renaissances.
Your Highness the Prime Minister, Kuwait’s industrial zones hold many opportunities, but they require support, reduced burdens, and a halt to impulsive decisions that serve neither the government, the investor, nor the citizens. Many factories and farms contribute to the national economy, yet they need stability, not a series of obstructive decisions. These workers need a helping hand in the event of a slump.
With its prime geographical location, Kuwait has the potential to become an economic paradise if the Cabinet supports business owners and provides them with more incentives. Some countries grant citizenship to investors, establish free zones, and encourage citizens to invest in all sectors. When a country interferes with people’s livelihoods and projects, it condemns its economy to decline. Socialist countries have abandoned nationalization after its proven devastating and stifling effects on markets. Your Excellency the Prime Minister, perhaps the Ministry of Finance and the Ministry of Commerce and Industry should form teams to explain to the Cabinet the obstacles facing the national economy due to poorly considered decisions and their negative impact on both citizens and investors.
The consequences of these decisions are akin to a slow death. His Highness the Amir of Kuwait has launched several initiatives, such as the tree planting campaign, which have greatly delighted Kuwaitis, who also witnessed a noticeable change in the country’s path toward progress.
Therefore, ministers, each in their respective roles, should harness these Amiri directives to promote the national renaissance. Leadership is not achievable without a strong and competitive economy. Your Highness the Prime Minister, I apologize for sharing these observations. My comments come from a place of deep patriotism and a genuine desire to see Kuwait regain its leadership role, as His Highness the Amir desires. Finally, Your Highness the Prime Minister, if the government recognizes a mistake in any area, the proper course of action should be to correct it through partnership, not by suspending business operations.
