Thursday 21 April 2011

ANALYSIS-Kuwait faces reform stalemate after cabinet falls | Energy & Oil | Reuters

Kuwait has mostly escaped the unrest sweeping the Arab world, but its dysfunctional politics once again risk blocking economic reform and foreign investment.

The Gulf oil producer has long lavished cradle-to-grave welfare benefits and public sector jobs on its one million nationals, who also have a parliament that is keen to protect such privileges and often quick to stymie legislation proposed by governments dominated by the ruling al-Sabah family.

The cabinet resigned this month to avoid the questioning of three ministers in parliament. Kuwait's ruler has asked outgoing Prime Minister Sheikh Nasser al-Mohammed al-Sabah to form a new cabinet -- his seventh since he was first appointed in 2006.

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