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| Who is pushing the stock market towards collapse? |
| | Sat, 10 Jul 2010 |
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KUWAIT CITY : ‘Oh God, we do not ask for the reversal of our fate but we beg for your mercy’. This is how Kuwaitis, who were harmed by what has been happening in the stock market, had probably been praying, especially since God does not forgive two things - polytheism and harming people. If we are not dealing with polytheism, then we are facing those who harm the people, country and public wealth, because all the ways towards a realistic and effective solution to the stock market problem have been blocked. We ask God to protect us against the minority, which has been instigating one crisis after another at the expense of all Kuwaitis. Those who have been closely monitoring our economic situation often wonder, “Who is responsible for this situation? Is it the Minister of Finance or the Central Bank of Kuwait (CBK) governor? Or is it the overlap of authorities between the Ministry of Finance and CBK?”
The big question is: “Who gives orders to whom?” In other countries, the Minister of Finance is in charge of the financial situation of the nation and people, as well as the public and private funds. On the other hand, the specialization of the Central Bank is limited to the cash overflow, government’s currency and basket of currencies. Its relations with local banks are documented, so the Central Bank bears the responsibility for any mistake in the instructions it gives while it also has to prevent banks from making false claims in case of non-compliance of its written instructions. The questions are many but the citizens are more concerned about the queries related to the stock market, which constitutes 50 percent of the national economy. Doesn’t the economic activity consist of a few production companies, real estate and other investment institutions? Aren’t most of these firms listed on the market, forming a financial cycle in the country and abroad, in which the profits return to Kuwait and the losses are announced? This should be the natural economic situation in the country. However, we have had an unusual economic situation for years.
Many countries have been through the worst crisis, but they have addressed their problems by adopting smooth and quick procedures, through the strong coordination of their presidents, governments and ministries of finance. They have not left their economic woes to the economically-cultured people who have done nothing but instigate chaos and terrify the public or utter criticisms without an accurate scientific vision. Over the last few years, we have witnessed nothing but consecutive meetings for days and months without any tangible results. We have also observed disagreements over the authorities of the ministry and CBK. People suffer daily due to the negligence of certain officials and a political move led by half-cultured people, who have pushed the country towards an endless dark tunnel. This has led to the approval of the ‘deformed’ economic stability law, which was not supposed to have been enacted in a country like Kuwait, because it submerges the people’s intentions and is similar to the laws issued by the European inspection courts in the Middle Ages. It is no more than an attempt to silence some ignorant parliamentary voices, which were loud at some stage. It would have been better for the Ministry of Finance to tread on the right path and steer our ship until it reaches the harbor safely.
There is a need for transparency in everything. Therefore, we ask the Minister of Finance and the Central Bank governor: Is there any institution full of manipulations? Are the manipulative institutions not known to the Central Bank? Why do they allow this evil to prevail? Is it not possible to adopt suitable solutions and give the people a real dose of hope, instead of an illusion?
Undoubtedly, the minister and CBK governor know the market was previously valued at KD 65 billion, a far cry from the current KD 29 billion. They also know this market is owned by most corporations, authorities, institutions and “Waqf” mutual funds, in addition to 160,000 traders. Any disorder in this market may cause huge losses to a majority of Kuwaitis, not just a few people or companies.
In line with the same transparency, we say: The issue is not about practicing what we desire and letting our emotions control us until we lose sight of the right direction. It is also not about pushing the economy towards deterioration, similar to what is happening now, intentionally or otherwise. We have to seriously search for appropriate solutions to this problem.
Most countries have risen above the economic crisis with a resolution stating that the government is the protector of the national economy. They have strongly fought the winds and reassured the people rather than telling jokes, issuing offensive statements, and rejoicing over others misfortune.
Perhaps, we should move the minds and hearts of those in charge of this matter and warn them on the dire consequences of ignoring the real situation at the stock market. Maybe, we must remind them that God Almighty does not forgive those who harm others.
We hope HH the Prime Minister Sheikh Nasser Mohammad Al-Ahmad Al-Sabah will demand a thorough evaluation of the procedures taken in the past, to determine the strengths and weaknesses. We want the premier to seek the services of a neutral authority to assess these procedures, similar to what HH Sheikh Jaber Al-Ahmad (May God have mercy on him) did when he asked the international economic experts to evaluate the measures taken to solve the first Al-Manakh crisis without the knowledge of anyone. In the end, he presented the best solution.
At the time, Abdulrahman Al-Ateeqi was the Minister of Finance. Kuwaitis are now asking the Premier to open an investigation on the procedures, so the country does not remain at the mercy of those who have been harming others.
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