KUWAIT IS NOT CONSIDERED AS DEVELOPEDCOUNTRY

Discuss why Kuwait is not considered a “developed” country

Discuss why Kuwait is not considered a “developed” country

Introduction

The prominence and importance of urbanized, developing and under-developed countries is personal information which is recognized on the basis of economical, political, social and societal status of a country. Although, Kuwait is rich for its mineral oil resources, its political, social and cultural status is not influential. For this reason, Kuwait is not considered to be a developed country. Kuwait does not rank competitively for various reasons. Political situation has slowed down economic restructuring and development, while long-drawn-out official events limit non-oil sector growth for both overseas and local businesses. Other issues include instability in oil prices and escalating global trade linkages as well foreign businesses cannot participate in the local market of Kuwait (Bernhagen, 2009).

Why Kuwait is not considered to be a Developed Country?

Kuwait's economy has been geared towards the development of a local market. The country's ruling privileged have also made little attempts improve the education system. The economy has not welcomed foreign investment while closing its markets. During the 1970s, high-oil prices led to an extraordinary increase in macroeconomic indicators but by the 1980s dropping oil prices had forced the government to cut back on expenditure and budget deficits. Its economy is immensely reliant on imported overseas workforce. Over, 81 percent of foreign immigrants make up the labor force in Kuwait. In other words, expatriates play a major role in contributing towards Kuwait's economy (Bernhagen, 2009).

In addition, the nature of the Kuwaiti economy does not allow employment of nationals, in the form of a serious and, in the private-sector, which means an increased burden on the government, which have to create many jobs to the labor market of people who may increase their numbers of annual 20 thousand graduates of universities, colleges and high schools or below the levels of education. The task of operating as a political tool for many members of the Council of Nation is used for the return of any of these members to seats in the nation (Brynen, 1995).

There is an important issue in the report of the IMF this year regarding the situation of the banking system and investment firms. It is the most cited in this area that the financial situation of the Kuwaiti banks improved to the point of having a good capital adequacy raised from 17 percent in 2009 to 19 percent in 2010 that improved the degree of financial support to 13 percent. But what was confirmed by data for the Central Bank of Kuwait, and the report re-clarified, was the fact that the banks could not expand much in the lending operations and finance. Despite the fact that banks in Kuwait have achieved good results in 2010 as it increased profits by 70 percent from those achieved in 2009, still before the exposure of banks, investment companies worrying (Brynen, 1995).

It is known that Kuwaiti investment firms facing structural problems require that the competent ...