Free food & over $3500 for Kuwaitis 17, January 2011Posted by thegulfblog.com in Kuwait.
Tags: Kuwait, Kuwait independence day, Kuwait national day, Rentier state
Sometimes it can be tricky to come up with a definition of the rentier state; sometimes not.
On the occasion of Kuwait’s 50th anniversary of its independence from the British and its 20th anniversary of its liberation from Iraq, the Emir Sabah al Sabah is giving every Kuwaiti 1000 dinars or $3560 as well as 13 months of free food rations.
Several points now come to mind:
– Given that Kuwait is arguably on the brink (again) of serious issues in its Parliament, this may be a wise decision to try to placate all sides for a (short period of) time.
– I don’t quite understand the food stamps. Aside from simply being given 1000 KD, Kuwaitis have one of the most generous welfare states on earth (guaranteed jobs, ‘free’ loans then loan forgiveness, no taxes, no bills etc etc). Why would such a population who are – let’s be blunt here – very rich need food stamps? Perhaps it is some traditional-paternal ritual that the Emir wants to keep alive.
– Overall, I fear very greatly that these kinds of handouts are harmful for the longer term. Instilling in Kuwaitis more so than is already the case that they are owed free money, food and opportunities simply because they are Kuwaitis and not because of anything that they have done is a grim precedent to set. Emir after Emir will be forced to follow suit dishing out these bonuses for (again) nothing. Eventually, as Kuwait’s oil whittles down and it has to rely ever more on its (substantial) financial investments [for there is no meaningful sign of industrial diversification yet], such bonuses will become costlier and costlier for the Government to give out. Yet a population weened on such gifts will not give them up readily. Essentially, I see Sabah giving out this cash now as storing up huge problems for his great-grandchildren when they come to rule.