Kuwait averts crisis but reforms at risk

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Parliament Speaker Jassem Al Kharafi and Prime Minister Sheikh Nasser Al Mohammad Al Sabah exchanged warm words and hopes for cooperation after a turbulent month as the Gulf Arab state’s assembly closed for the annual summer recess last week.

Kuwait’s parliament, which has a history of challenging the government in a region dominated by autocratic rulers, is not due to meet again until October 21.

But analysts said its decision to raise state salaries for the second time since February and to help indebted Kuwaitis have undermined pledges to cut a welfare state, diversify the economy and attract more investment.

"They opened the door for more demands. It will be a long headache for the government," said Ali Al Baghli, a former oil minister. "We hope that the government and parliament will work on important issues after the summer recess."

Kuwait, the world’s seventh-largest oil exporter, wants to emulate the success of neighbouring Dubai and Bahrain, which have reduced their reliance on oil by transforming themselves into financial and commercial centres.

But despite calls by Kuwait’s ruler for both the legislative and executive branches to work together, key bills been repeatedly delayed.

 

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