RSS Feed MEI Podcast

Challenges of Economic and Political Reform in Kuwait

 
Event Summary
Challenges of Economic and Political Reform in Kuwait
April 03, 2006

Event Featuring:

Amer Al-Tameemi

Overview

Amer Al-Tameemi spoke on the topic of political and economic reform in Kuwait. He discussed the progressive political reforms that have been taking place in Kuwait, exemplified by the expansion of women's political rights. Al-Tameemi argued that economic reform in Kuwait is necessary to provide the groundwork for further political reform. He believes that privatizing the public sector will create a private sphere more independent of governmental influence and coercion. Al-Tameemi is confident that Kuwait will become a powerful economic competitor in the Gulf if it succeeds in privatizing its industries and creating conditions favorable to foreign investment.

Event Summary

Amer Al-Tameemi began by describing the positive political reforms in Kuwait that have been underreported by the media. He contended that people are missing a “big story taking place on the ground” as major political and economic changes are occurring in the Gulf States. Al-Tameemi argued that the recent economic and political developments in the Gulf, and specifically in Kuwait, will be viewed by future historians as “quite dramatic” shifts in Middle Eastern society.

Al-Tameemi explained that a “new team of leaders,” including a new Prime Minister, Crown Prince, and Emir, is now at the helm of Kuwaiti government and has undertaken substantive political reforms. Women were granted suffrage last year, and are now eligible to run in local elections. In addition, they will be permitted to vote in the parliamentary elections next year. Al-Tameemi projected that women may in fact outnumber male voters in the next election, as the military and police are unable to cast ballots in Kuwaiti elections.

Although these reforms are encouraging, Al-Tameemi recognized that there are formidable challenges that lie ahead. He raised questions about whether women will be able to vote independently of the males in their families and whether they will support female candidates. Al-Tameemi emphasized that Kuwaiti society is still very conservative and that not all women active in politics are members of leftist parties. Al-Tameemi explained that many Islamist parties support women as political actors, notably the Muslim Brotherhood, which historically has had strong female participation.

In order to make it easier for women to succeed in politics, Al-Tameemi encouraged the Kuwaiti government to pass legislation that would enlarge the voting districts that candidates are elected from, perhaps reducing the number from 25 to 10. He contended that enlarging the size of the voting districts would cause candidates to be elected on the basis of merit and broad-base appeal rather than on account of their sectarian or tribal affiliation. He also encouraged the Kuwaiti government to legalize political groups that have been excluded from political participation and improve governmental transparency.

Al-Tameemi’s major contention was that Kuwait must undergo major economic reforms in order to progress further with political liberalization. He described how the private sphere, economically reliant on oil revenues and governmental intervention, is unable to sustain vibrant civil society because it is susceptible to governmental influence and coercion. Al-Tameemi argued that further political reforms are contingent on “modernizing” the Kuwaiti economy through diversification and privatization, especially of the utility and telecommunications sectors. A privatized Kuwaiti economy would be heighten its competitiveness among Gulf States, and would enable it to take economic advantage of its strategic location between Iran and Iraq.

Al-Tameemi acknowledged that a policy to privatize many realms of the Kuwaiti economy would confront opposition from parts of the society hostile to changes to the status quo. Economic reform would be difficult when the government contributes 75% of the GDP, most industries are subsidized, and many depend on government-run companies for jobs. However, he argued that the threat of a reactionary response should not dissuade the Kuwaiti government from pursuing economic reforms with resolve. He proposed ways that the Kuwaiti government could ameliorate concern about economic changes, including a policy providing for early retirement with generous benefits.

Al-Tameemi praised the economic progress that has been made thus far in Kuwait, including the introduction of foreign banks, but leveled criticism at the government’s failure to reform the antiquated tax laws. He specifically addressed a decree passed in 1955 to extract 55% of foreign company profits, arguing that it was originally intended for oil companies, but is now out-of-date and should be repealed because it discourages foreign companies from investing in Kuwait. Al-Tameemi argued that foreign investment, both in the Kuwaiti economy and stock market, is vital because some aspects of the economy require the expertise and management by foreigners.

Al-Tameemi concluded that economic diversification and privatization in Kuwait should be pursued because of the economic and political benefits it will bring the country. He emphasized that “balancing the private and public sector” will enable Kuwait to institutionalize democratic political reforms.

About this Event

Amer Al-Tameemi presented this policy brief at MEI's Boardman Room on April 3, 2006.

Speaker Details

Amer Al-Tameemi is currently Chairman of United Fishery of Kuwait Company. Al-Tameemi began his career in the Central Statistics Office at the Ministry of Planning in Kuwait in 1968 and since then has held various top administrative posts or board memberships in companies including Kuwait Foreign Trading, Contracting & Investment Co.; Kuwait Investment Projects Co; United Industries Kuwait; and Kuwait Economic Society.

Attributions

Olivia Sohns prepared this summary and is an intern with the Development Department of the Middle East Institute. She is a junior at Stanford University majoring in History with a minor in Middle Eastern Languages, Literatures, and Cultures. She is participating in the Stanford in Washington program this spring.

Disclaimer: Assertions and opinions in this Summary are solely those of the above-mentioned author(s) and do not reflect necessarily the views of the Middle East Institute, which expressly does not take positions on Middle East policy.