Much has been said about the concept of economic sustainability, with some reducing it to mere continuity, without addressing the essence of what distinguishes a sustainable economic system from a rentier one. The Kuwaiti economy, gentlemen, is built on revenues generated from exports abroad, which then flow into commercial poles within the country. The first pole, “1,” representing the government sector, is managed through a centralized methodology by the state’s administrative hierarchy. The second pole, “2,” representing the private sector, is managed through a separate methodology by different parties, each making decisions according to the data of the state’s macroeconomy and its own particular circumstances.

In light of the dynamics of the macroeconomy and the policies in force within the Kuwaiti economy, three additional sub-poles have emerged under pole “2,” which represents the private sector. They may be detailed as follows: the first branch, “A,” is the largest in size, and consists of the private sector that depends on revenues generated from the consumption of employees of pole “1” — the government sector — and pole “2” — the private sector. The second branch, “B,” smaller than the branch above it, consists of the private sector that depends on revenues from tenders and practices that meet the needs of pole “1.” Finally, the third branch, “C,” the smallest among them, is the private sector that relies on revenues from external export operations.

Based on the foregoing, we reach a conclusion indicating that the Kuwaiti economy rests exclusively on: first, the export revenues of pole “1” — the government sector; and second, the export revenues of the third branch, “C,” belonging to pole “2” — the private sector — and nothing else. Accordingly, since “C” is the smallest branch within pole “2,” and since “A” and “B” derive their revenues from both “1” and “2,” this clearly indicates that the Kuwaiti economy’s dependence on the government sector far exceeds its dependence on the private sector by a wide and unmistakable margin. And since the oil export revenues of pole “1” constitute slightly above or below 90% of total revenues, this provides another indication that the Kuwaiti economy, across all its poles, is almost entirely based on the rent generated by those oil exports.

The challenge lies in reversing the balance of this equation: moving this economy into a new economy, changing its concepts, and reshaping its meaning. This would be a transformation in which the weight of dependence on “C” becomes greater than the weight of dependence on “1”; that is, an economy based on private-sector export revenues — its productivity — rather than on government-sector revenues generated by exporting oil, or any other natural resource, abroad.

This cannot be achieved except through the existence of an investment environment with fertile soil and healthy productivity, capable of creating a sector whose exports rival the weight of current oil exports. In contrast to the environment under which we currently live, what we aspire to is the creation of an environment that generates non-oil revenues for the state treasury, such as service revenues, taxes, customs duties, and others. Such an environment would itself become the principal cause and contributor to resolving the state’s greatest dilemmas, while reducing the burden on the state in providing employment opportunities for citizens.

How does the factor of risk affect the success of exports?

Exports reduce fragility because they widen income sources and force the private sector to test its capacity in markets not protected by the state. This makes risk an important test that separates temporary treatment from capacity that can endure.

How does the factor of risk affect the success of economic visions?

A serious vision reveals the cost of transition, assigns responsibility, and measures results; otherwise it remains a general promise without executive force. This makes risk an important test that separates temporary treatment from capacity that can endure.

How does the factor of risk affect the success of economic development?

Development becomes sustainable when it builds productivity, skills, institutions, and exports capable of generating renewable value. This makes risk an important test that separates temporary treatment from capacity that can endure.

How does private-sector exports and economic sustainability affect Kuwait?

Its effect appears in how costs, incentives, and resources are managed, and in Kuwait's ability to turn decisions into sustainable value. The direct context is economic sustainability in Kuwait and the need to shift dependence from oil exports to productive private-sector exports.