Where The Government's Money is Actually Going in Kuwait

In between Iraq, Saudi Arabia, and the Persian Gulf, Kuwait lies mostly barren. Most of the country is riddled with deserts and inhabitable, except for the west coast where a majority of the Kuwaitis live. The country has had its problems like any other country, but the main issue it had was the Persian Gulf War between Kuwait and Iraq in 1990-1991. The country had bounced back fairly quickly and now has one of the highest per capita incomes in the world (Anthony 2). Kuwait’s government is also very helpful and promises a lot of help financially with subsidies, except many of the people have yet to receive their government help.

Kuwait has guaranteed roofs over their citizens heads for a long while now, but it hasn’t been as successful as originally hoped for: “Kuwaiti nationals are entitled to government-subsidized housing—usually a two-story, stand-alone villa—once they marry. More than three-quarters of newlyweds typically apply for it. High demand has contributed to an overwhelming backlog. A recent study published by the LSE Kuwait Programme notes that the waiting list is now 100,000 applications long” (Schwartz 1). Because their population is growing so rapidly, and more and more people are getting married, the demand for houses is going up faster than they can provide them. Leaving some married couples on the waiting list for up to 18 years for a home. The demand for newly-wed couples to get a home has always been high, the backup even started around the 1980s but has just gotten worse over time. Kuwait had a successful government because of their oil production. Which is something Iraq tried to take away from Kuwait during the Persian Gulf War by setting fire to most of their oil wells. But Kuwait recovered quickly and has been super successful ever since especially business wise. Most of the government subsidies goes towards big businesses instead of to the people. “By 1991, Kuwait had over $100 billion in assets and was earning more from its investments than from oil. It was being managed quite secretly though; no one except the amir and very few of his associates knew how the fund operated and how the funds were invested” (Seznec 24). The money is being held secretly which is unusual, since the citizens don’t necessarily know where all of the money is coming from and/or going towards.

The overall opinions of the subsidies seems to be fairly positive. Even though the money isn’t directly going towards the people, it is going towards things that will help them out in the long run: “Because of its vast oil wealth, Kuwait can and does subsidize nearly every part of its people’s lives - employment, health, education, housing - and even some grocery stores, The government provides a job to virtually every Kuwaiti citizen, women included” (D’Aluisio 197). The government is doing everything it can to provide for the people without actually letting them have the money, but Kuwaitis don’tseem to mind since they are all able to get jobs, even the women, to provide for their families.

Kuwait has to depend heavily on their oil production and businesses because they don’t have fertile land for farming. Their soil is quite dry and sand-like so it isn’t good for farming. They are also in an extreme drought and don’t have easy access to water. Because of this, there are intermittent water sources, but nothing is permanent. Through all of the struggles the government still does everything in its power to help its people: “Its generally conservative government continues to provide generous material benefits for Kuwaiti citizens, and, though conservative elements in its society resisted such reforms as woman suffrage, it has remained relatively stable. It has been called an ‘oasis’ of peace and safety amid an otherwise turbulent region” (Anthony 2).