Essay on Economic Issues of Kuwait

Kuwait is the 11^th wealthiest country of the world because the country is dealing in petroleum, And most of their economy relies on the export of petroleum products all around the world. But then Kuwait is facing many issues related to his economy. Unemployment is the main issue faced by the economy of Kuwait, every year thousands of student graduated and remain unemployed, but government have to offer employement in the Government sector because it was mentioned in the constitution of Kuwait to hire new employees in the government sector, and government select 85% students through civil service commission and this would lead the government by overstaffing. And overstaffing and unemployment pay an adverse effect on the economy of Kuwait. Overstaffing reduces the output efficiency of the Bureacuracy, which means the slow-down is needed in the activities of the business and the start-up in the basics of business, and get license of business permits may take long. And this will pay a wrong impression on foreign investors to invest in Kuwait and also discourage the local and private sector and may dismiss the potential of the investors and move them toward other countries that had healthy business environment.

I suggested that Kuwait should need to increase GNP for the Kuwatian investors to invest more in other countries, by offering these situations it will help in inecreasing the GDP of the country and increase in GDP will decrease the unemployment from the country. And to fight with the problem of reduced bureaucracy and inadequate rules and regulations of the company, revised the laws and regulations of the state. The structural business reforms should be making, these reforms will encourage the investments and employment in the economy of Kuwait, and this reform will also help increase the GDP and prosperity of Kuwait. By giving an excellent start to the foreign investors, the right to create a local company where these investors may increase shares of the foreigners may reach 100% in their capital.

The government of Kuwait plays a vital role in this solution, and the government should need to pay attention to these fields to reduce the overstaffing and unemployment from the country. And the governemt is the one who applies the above solutions; the Government should setup the new rules and laws to make Kuwait as a leading financial and investment center. Moreover the Government should take the initiative to decrease the taxes on foreign investment and allocate the appropriate land for the purpose of investment. The Government should continue with the project concerning the “electronic government” to make the process easier and faster. The Governmet should provide different ways to minimize unemployment instead of doing overstaffing. And the government should make variations in the constitution; the amendment in the law will give the freedom to choose limited employes instead of overstaffing.

All the suggestions which were given above pay a significant impact on the economy of Kuwait; the above suggestions will help Kuwait in reducing the unemployement from the country, and using these suggestions will help the Government to minimize the overstaffing, and less efforts should be made in performing tasks, and this will be a cause for the betterment of economy. And by giving opportunity to foreign investors will make life easier for Kuwait. The use of these situations will be time-saving, less in efforts, and more manageable for the government of Kuwait to resolve the economic issue and increase the economy and put the country to achieve more success and become the no one country of the world.