Challenges facing Kuwaiti economy - Authority hosts symposium on economic reform programs
KUWAIT: There is imbalance in Kuwait's demographic structure that puts enormous pressure on Kuwait's financial resources and infrastructure, an official said yesterday while discussing challenges facing the Kuwaiti economy.
"One of the challenges is the demography of the labor force and the educational level of expatriate labor, where 40 percent of the workers do not hold university degrees," said Abdulwahab Al-Rasheed, Deputy Head of the Board of Directors of Kuwait Economic Society. "Furthermore, there is a need to create jobs as soon as possible, and the market's needs must be linked to educational output."
Rasheed made his statements during a seminar held by the Kuwait Anti-Corruption Authority (KANCOR) yesterday on 'economic reform programs and their impact in combating financial and administrative corruption'.
Financial disclosure
Assistant Secretary-General of KANCOR Salem Ali Al-Ali started the seminar by discussing the financial disclosure clause and its impact on strengthening the economy of Kuwait. "The categories required to provide financial disclosures include the executive authority, legislative authority, judiciary, cooperatives and sports bodies and companies to which the state directly contributes 25 percent," he said.
Ali stressed that this makes an employee practice control and monitor their actions, thus fighting corruption and bribery and protecting state funds. He explained that the financial disclosure also contributes to the reduction of tax and customs evasion and create an attractive environment free of financial corruption and bribery, reflecting positively on attracting foreign investors. "When the investor feels confident in investing in Kuwait, there will be macroeconomic reform," he added.
Meanwhile, Rasheed spoke about 'reforming Policies and Improving the Competitiveness and Transparency of the Kuwaiti Economy'. "There are many challenges facing the Kuwaiti economy, such as the administrative system, where there is a lack of a strategy for administrative reform and the continuation of administrative obstacles - a lack of efficiency and the rigidity in the application of laws," he said. Rasheed also pointed out to Kuwait's economic dependence on oil, no taxation, and lack ongoing reform effort, which pose challenge to the Kuwaiti economy.
No implementation
Salah Mohammad Al-Ghazali, Founder and President of Kuwait Transparency Society, explained 'the role of civil society organizations in economic reform'. He said a lack of an effective implementation strategy between the technical team and the political team has resulted in a mess, where most of the programs are excellent but not implemented, which leads to large penalties. Ghazali pointed out a lot of projects were canceled and cost the state millions, especially at Kuwait Petroleum Corporation, adding that the State Audit Bureau released 14 pages of a report full of violations in the oil sector. He hoped the government will address these irregularities and imbalances.
By Faten Omar