Kuwait's economic reforms at stake in polls

Kuwait: Kuwaitis go to the polls on Saturday hopeful that new faces will help end endemic political feuding and revive a moribund economy, but fearing little will change after a campaign dogged by intimidation and vote-buying.

Kuwait's Emir Sheikh Sabah al-Ahmad al-Sabah dissolved parliament in March to end a crisis with the cabinet that had delayed economic reforms.

The bourse initially rose on hopes the new chamber would be more business-friendly than the last.

But the two-month campaign has since been marred by protests, arrests and confusion after the state redrew electoral districts to ensure a more balanced representation in a parliament that has tended to be dominated by Islamist blocs and tribal alliances.

Kuwaiti tribesmen stormed a police station this month in an attempt to free men detained for holding illegal primaries.

The authorities, hoping to encourage campaigning based on policy issues, have tried without success to stop primaries, where tribes pick consensus candidates to boost their ballot chances.

Candidates have been arrested on vote-buying allegations and, under the new rules that have cut the number of constituencies from 25 to five, no one can predict who will win.

"I'm pessimistic, we are just hearing promises," said voter Hussein Abdullah after listening to a two-hour election rally. "There are always many grillings for this and that minister."

The last assembly focused on questioning ministers over their conduct, forcing some to resign. Last year, the cabinet resigned to avert a no-confidence vote in the health minister, who is a member of the ruling family.

The crisis persisted despite repeated pleas by the emir, who has the last say in policy, for the legislative and executive branches to work together for the good of the country.

"We are hearing the same talk but until now we haven't seen any accomplishments... I see that history repeats itself," said Amani Bouresli, a professor of finance at Kuwait University.

Cradle to grave

Kuwait, which sits on 10 percent of the world's oil, wants to wean its economy off energy exports and emulate the success of neighbours such as Dubai, Qatar and Bahrain which have
transformed themselves into financial centres and tourist destinations.

But Kuwait's political standoff means even a long-awaited bill aimed at attracting foreign investment has yet to pass.

Oil comprises over 90 percent of Kuwaiti government revenues and half of gross domestic product (GDP), Global Investment House said. That compares to 3 percent of GDP in Dubai.

Analysts say there is some room for hope. Politicians appear to be waking up to the reality that Kuwait is falling behind.

"Many candidates regret what happened in the last assembly when deputies focused on grillings," said Ali al-Baghli, a former oil minister and critic of government and parliament.

"They are promising to focus more on economic issues and what people care about."

The Islamist Constitutional Movement, a leading Islamist bloc that was behind last year's questioning of the health minister over his policy, has pledged in its election programme to cooperate with the next government.

The Liberal Democratic Alliance, a technocrat group, said it will back a long-delayed bill to set up a financial regulator.

Other liberals such as Rola Dashti, a woman economist who is running for the second time, promise privatisation to shift Kuwait away from its cradle-to-grave welfare system.

But part of the problem is that ordinary Kuwaitis oppose reforms that would cut their benefits and push them into the private sector. They pay no taxes and are content with public sector jobs, free health and schools and state handouts.

Reforms will be even harder to push through with global food prices rising and inflation at a record 9.5 percent.