Your Highness the Prime Minister … This is our economic situation

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IN a humorous newsletter on the American economic reality, well-known Swiss investor Marc Faber commented on the news that the American government is considering giving every citizen $600 to help them cope with the financial crisis.  He said: “The federal government is sending each of us $600 rebate. If we spend that money at Wal-Mart, the money goes to China. If we spend it on gasoline, it goes to the Arabs. If we buy a computer, it will go to India. If we purchase fruits and vegetables, it will go to Mexico, Honduras and Guatemala. If we purchase a good car, it will go to Germany. If we purchase useless crap, it will go to Taiwan and none of it will help the American economy.”

He added, sarcastically: “The only way to keep that money here at home is to spend it on prostitutes and beer, since these are the only products still produced in the US.”

A Lebanese economic response quickly came — also in a sarcastic manner: “Dear Mark, the situation of the Americans is getting worse. I regret to inform you that Budweiser (a beer brand) was recently acquired by a Brazilian company. Therefore, there are only prostitutes left.  If they decide to send their money to their children, these dollars will go entirely to the corruption leaders in Lebanon, which has the highest percentage of corrupt people in the world.”

It is true that these statements are attributed to Faber and to a Lebanese economist. Nevertheless, it is a fact that the American economy has reached the current inflation due to dependence of the majority of Americans on imported industries, so the United States is on the brink of losing its industrial base.

Based on this, American calls over the past 10 years focused on restoring industry and developing production facilities in various fields. During the current crisis, the Americans realized the need to return to supporting national production.

This prompts us to speak transparently to His Highness the Prime Minister Sheikh Ahmad Al-Nawaf about the state of the national economy; which suffers from neglect and almost absolute dependence on the outside, even in the simplest food commodities.

We have potential and large areas of land that can be exploited for manufacturing industries, rather than total dependence on oil or fees collected from citizens and expatriates as a secondary source of income.

Also, the economy cannot flourish in light of  the abundance of unplanned construction and reliance on constructing buildings in the hope that they will be inhabited by expatriates who are decreasing annually due to complex measures adopted by previous governments and the systematic ‘slashing’ of them under the slogan “reforming the demographics” without alternatives. Undoubtedly, there will be a major crisis once the expatriates leave the country.

Many other countries, especially Europe and Latin America, and even some Gulf countries like Bahrain, United Arab Emirates, Qatar and Saudi Arabia, are benefiting from visitors, even the transit passengers.

Visas are easily granted to foreigners who spend their money in such countries; while in Kuwait over the past four years, everyone has been prohibited from visiting the country, except with the permission of the Minister of Interior, and the visitor must have superhuman physical and mental characteristics!

Your Highness, as you know, the world crisis today is economic par excellence.  About 15 years ago, following the global financial crisis; many countries changed their economic and service strategies.  They opened their doors to investors in various sectors, and worked to build entertainment facilities for their citizens and expatriates.

Also, the previous government did not know how to benefit from the KD3,000 grant for retirees who spent the money in neighboring countries.

Your Highness, thinking inside the box does not build an economy; as it rather leads to more closure, which has dire security, economic and social consequences.

Therefore, the real task for you as an executive authority hoping to rid the country of the consequences of the past stage is to swiftly enhance investment opportunities, attract foreign capital, open the country, start promoting industries, especially all kinds of food products, and lay down a smart plan for food security so that we do not keep on importing milk, eggs, water and sheep tongue.  Otherwise, the country will remain inside a vicious circle.  Then, the first part of the theory of the Swiss — Marc Faber, in terms of the flight of money abroad through total dependence on imports, will be our reality as well.

By Ahmed Al-Jarallah

Editor-in-Chief, the Arab Times

This news has been read 22086 times!