Our Youth and Sovereign Wealth Funds
30 May. 2017
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A call for rigorous legislative drafting, urging young reformers to close loopholes and design laws that resist future corruption.
The maturation of citizens’ thinking in assessing the value of national issues has made the adoption of bold economic causes an inspiring direction for those in their thirties with political ambition. Youth gatherings have become filled with discussions about the effectiveness of sovereign fund investments, and whether repealing Article 8 of “Law No. 47 of 1982 concerning the establishment of the Kuwait Investment Authority and its management of those funds,” which conflicts with “public disclosure,” may be the beneficial step for improving the performance of those investments and managing their risks.

Public certainty regarding the ferocity of the resistance that would confront any project to amend the Authority’s law has inspired these young people toward another direction: adopting draft laws that gradually “pull the rug” from under the Kuwait Investment Authority through investments managed by new funds established under those laws. One example is the creation of a fund similar to the Small Projects Fund, but dedicated to megaprojects, in which citizens, the government, and foreign investors all participate.

Theoretically, one must assume good faith on the part of those who oppose a project to “amend” any law. The reason is that assuming bad faith on the part of those who originally called for “enacting” that law was essential. It is through that assumption, and only through it, that refined provisions can be extracted to confront issues related to conflicts of interest and administrative corruption. If the provisions of those laws are not capable of optimal confrontation, this is clear evidence of shortcomings in the study and analysis that should have been carried out intensively before legislation. Thus, good faith in today’s opposition is nothing more than a defense of a law that successfully passed a prior assumption of bad faith toward those who demanded its enactment.

Our religion certainly encourages us to assume good intentions on the part of these young people. Yet the exact opposite assumption is what professional rigor requires of us, especially when the matter concerns amending an existing law or legislating an entirely new one. This assumption is what will compel those young people to work diligently to justify every article in detail, limiting corruption built on internal regulations that commonly exploit vague legal provisions. It is also what will turn them into researchers aware of all possible assumptions, closing as many loopholes as possible that may be exploited in the future by others whose intentions do not align with theirs. In doing so, they create a future deterrent against any official resorting to the familiar phrase: “If you have something, file a lawsuit.”

Take, for example, a law whose article states: “Priority in financing shall be given to projects contributing to economic development.” This is clear evidence of weak drafting and of how easily such a provision can be exploited through internal regulations that favor one group over another. Replacing it with: “Priority in financing shall be given to projects that achieve the greatest increase in exports and foreign direct investment, and the greatest reduction in imports,” would limit the exploitation of amendments to internal regulations governing the criteria for funded projects. This would inevitably confront administrative corruption driven by the personal interests of individuals who may lead the competent entity in the future, and it would visibly weaken any fierce resistance to such laws.

The dedication of young people to intensive and professional detail, whether in a project to amend an existing law or to enact a new one, together with their assumption of good faith toward those who oppose them on substantive grounds, are both essential to avoiding the enactment of laws through the traditional methods witnessed in political work during the 1960s and 1970s — methods whose negative effects are visible to us today, and which we must strive not to leave behind for future generations.

Abdullah Al-Salloum
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Answers
How can governance and reform move from a general idea to something measurable?
Governance makes reform executable because it defines responsibilities, closes loopholes, and links decisions to accountability. When accountability is ignored, the idea becomes a limited procedure that does not change the wider path.
How can institutional reform move from a general idea to something measurable?
Institutional reform becomes difficult when interests, administrative habits, and weak accountability accumulate; it needs lasting rules, not scattered decisions. When accountability is ignored, the idea becomes a limited procedure that does not change the wider path.
How does legislative drafting and anti-corruption reform affect the economy?
Its effect appears in how costs, incentives, and resources are managed, and in the economy's ability to turn decisions into sustainable value. The direct context is for rigorous legislative drafting, urging young reformers to close loopholes and design laws that resist future corruption.
How can legal loopholes move from a general idea to something measurable?
Legal loopholes give corruption a safe path within the text of rules, so reform needs precise drafting and institutional oversight. When accountability is ignored, the idea becomes a limited procedure that does not change the wider path.
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