Kuwait grants every citizen 50 thousand dollars annually ... a fair scheme for the distribution of wealth

[Mary B]

Kuwait grants every citizen 50 thousand dollars annually ... a fair scheme for the distribution of wealth

2020-10-06

Yes Iraq - Baghdad

Kuwaiti press reports revealed a recent working paper proposing to replace all types of support provided to Kuwaiti citizens with a fixed salary of about 50 thousand dollars annually for life for all citizens of working age.

According to the Kuwaiti newspaper, Al-Qabas, the purpose of this step is to distribute wealth in a more equitable manner and to reduce waste in the subsidy bill, allowing the government to break the bottleneck and restructure the national economy.

The report, citing the Kuwait Impact website, which specializes in studies on public policy in Kuwait, stated that the final result of the wealth distribution review will reduce the burden of employment on the government, reduce expenditure waste directly, and push Kuwait towards a more sustainable economy.

Specialists said that the proposal would relieve the burden of creating unproductive office jobs from the pressure on the government to accommodate citizens in ministries "choked by bureaucracy."

The experts added that the effective and feasible solution for Kuwait is to simplify the mechanism for distributing oil revenues.

The proposal aims to provide an unconventional solution to confront the "eternal problem in the Kuwaiti economy" that satisfies all parties and ensures a minimum level of political opposition reactions.

https://yesiraq.com/الكويت-تمنح-كل-مواطن-50-الف-دولار-سنوياً/

[Mary B]

Kuwait ... 50 thousand dollars annually for every citizen

• TUESDAY, 06-10-2020, PM 4:01
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Kuwaiti press reports revealed a recent working paper proposing to replace all types of support provided to Kuwaiti citizens with a fixed salary of about 50 thousand dollars annually for life for all citizens of working age  so that the distribution of wealth is more equitable and to reduce waste in the subsidy bill, allowing the government to get out of the neck The bottle and the restructuring of the national economy.

The Kuwait Impact website, which specializes in studies on public policy in Kuwait, published a new paper entitled "New Ideas for Kuwait" by the investment advisor, Ali Al-Saleem, in which he says that the final result of reviewing the distribution of wealth will reduce the burden of employment on the government and reduce the waste of expenses directly. And pushing Kuwait towards a more sustainable economy.

And it deals with the structural imbalances in the Kuwaiti economy, which have generated accumulated deficits in the public finances since 2014, and led to the depletion of the public treasury, as it has become difficult to achieve parity in the general budget of Kuwait due to the decline in global oil prices and the increase in public expenditures, but the main problem is inflation. The public sector because of the constitutional responsibility towards the government to provide jobs for all citizens, which further complicates the reform by Parliament’s refusal to undertake any economic reforms that might affect the current wealth distribution mechanism.

 

Various solutions

In his paper, the writer Ali Al-Saleem presents different and unconventional solutions to the dilemma of the Kuwaiti economy and its financial implications, which is to expand the area of beneficiaries of labor support currently provided to workers in the private sector, to include the total national workforce with an annual salary of $ 50 thousand regardless of employment status. All Kuwaitis have a basic salary that guarantees the optimal distribution of wealth in accordance with the constitutional provisions, and reduces the burden of creating job opportunities in the public sector, and creating this new incentive for citizens will open the way for the government to undertake structural reforms of the economy, including privatization, reviewing subsidies, and liberalizing the economy from restrictions.

Instead of creating fake jobs and creating more bureaucracy, Al-Saleem proposes adopting a radical policy that would be logical to give Kuwaitis the option not to work in the government while still paying their salaries from the state. The state, adding that the proposal “is based on the largest possible number of existing laws, and takes into account the restrictions imposed by the Kuwaiti constitution.

If the solutions are properly implemented, the country will have the ability to radically reform the country's incentive structures and liberate greater economic dynamism in a politically viable way.

Al-Saleem says that the proposal "will reduce the burden of creating unproductive office jobs from the pressure on the government to absorb citizens into ministries that are already stifling due to bureaucracy," adding that the effective and feasible solution for Kuwait is to simplify the mechanism for distributing oil revenues.

In his paper, writer Ali Al-Saleem aims to present an unconventional solution to confront the eternal problem in the country's economy and prompt readers to think of innovative solutions that satisfy all parties and ensure a minimum level of opposition political reactions in a country facing great doubts about securing its economic future.

http://non14.net/public/128699