CR IP TI ON BS SU
WEDNESDAY, OCTOBER 2, 2013
Nearly 1,000 Iraqis killed in September
Dar Al-Shifa excels again; Conference addresses obesity
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Venezuela expels US diplomats
Asia cage-fighter strikes blow for region’s women
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Shopping malls to install metal detectors, cameras
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www.kuwaittimes.net
THULQADA 26, 1434 AH
MP wants statues banned, removed conspiracy theories
Big countries, big budgets
By Badrya Darwish
badrya_d@kuwaittimes.net
T
his is the beauty of American democracy: The president cannot force anything on the nation. The biggest illustration for my words is yesterday’s shutdown of the US federal government after the Congress rejected the budget. Since Obama’s first term, the president has tried to implement a healthcare reform. We all know that the US healthcare system is controlled by influential insurance companies. If you lack an insurance, you will be deprived of many healthcare services. This means that the poor are deprived from proper healthcare. It is amazing how the biggest and strongest country in the world does not provide healthcare benefits to its people. But this is not my major point. That is an issue of concern to American citizens. The brawl that lead to the shutdown yesterday was related, in one way or another, to the debate about the Patient Protection and Affordable Care Act known as the Obamacare. This was not the first federal government shutdown. I remember the last time the federal government closed was in 1996 during the Bill Clinton era which cost US $1 billion. The reasons for the closure were different. In US politics the budget always causes big disputes. The estimate for this closure is even higher (around $30 million a day). Wow! That on its own is the budget of a small country in the eastern hemisphere. Anyways, America is a big and strong country. Such an amount is not so big for US. Just for comparison, the war in Iraq has cost around $1.5 trillion, according to a study. That was money well spent for a good cause introducing democracy to Iraq and Iraqis. The US really did exactly that. After the discovery of this staggering cost, I was depressed to check what was the cost of exporting freedom to Afghanistan. Of course, I am not going to even start searching the continuous defense aid given to Israel. I think that such amounts of money can do miracles to help with the US budget shortage. But then again, when we are talking about big countries, we are talking big budgets.
KUWAIT: Motorists pass under a pedestrian bridge linked to the Marina Mall shopping plaza in Salmiya. The Cabinet has reiterated the need to address the increase in crime rate in Kuwait including murders - the latest of which happened at the Marina Mall last Thursday.
Max 39 Min 20º High Tide 09:29 & 22:53 Low Tide 03:48 & 16:38
KUWAIT: The Cabinet reiterated the need to address the increase in crime rate in Kuwait including murders the latest of which happened at the Marina Mall last Thursday. The latest crime was a main topic of discussion during the Cabinet’s weekly meeting Monday during which Deputy Prime Minister and Interior Minister Sheikh Mohammad Al-Khalid Al-Sabah gave a briefing regarding the incident, as well as the mechanism of coordination to be established with malls managements in order to provide security personnel and surveillance cameras at each shopping center. Those updates were published by Al-Qabas yesterday quoting a government source familiar with the Cabinet’s meeting. Meanwhile, the Interior Ministry released a statement yesterday announcing that managements of local malls and shopping centers have already been contacted and informed about procedures they are required to adopt in order to improve safety and security conditions there. The statement explains that the conditions include installing CCTV cameras inside and outside a shopping mall, as well as installing metal detectors at entrances and providing an adequate number of alarm and communication systems. As per the new conditions, malls would also be required to put signs at entrances that list all kinds of banned weapons and items as well as penalties for smuggling MP Al-Jeeran those items inside the mall. In another development, a Kuwaiti lawmaker has urged the government to remove statues sold in local Continued on Page 13
Kuwait urged to rein in spending Strengthen non-oil income: IMF KUWAIT: Kuwait must rein in public spending, especially on wages, and find new sources of income if it wants to keep its fiscal position strong, the International Monetary Fund said. The OPEC member should also push ahead with its 30 billion dinar ($106 billion) development plan to diversify its heavily oilreliant economy, boost foreign investment and create jobs, it said. Kuwait has so far enacted little of the plan. Kuwait’s budget surplus is forecast to drop to a still robust 27.4 percent of gross domestic product in the fiscal year that began in April from 33.4 percent in 2012/13, the IMF said in a statement following regular consultations in Kuwait. But in view of recent sharp rises in current
spending and relatively small non-oil revenues, government expenditure is set to exceed oil revenues by 2017/18, raising the risk from any sustained drop in oil prices, it said based on its projections. “The mission underlines the need to contain current spending, especially in the public wage bill, to provide fiscal buffers in the case of an oil price shock, and to continue to save for intergenerational equity,” the Fund said. Kuwait’s fiscal buffers were large even before the oil price needed to balance its budget rose to $70 per barrel in 2013/14, the IMF said. Brent crude is forecast to hover around $107.5 this year in Reuters’ September poll. “In the medium term, fiscal restraint of about 8 percent of GDP through lower current spending
Saudi strengthens anti-Qaeda group
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World holds breath; US shuts down WASHINGTON: Monuments closed, offices fell silent and 800,000 public servants were told to stay at home yesterday as Washington’s perennial political crisis forced the first government shutdown in 17 years. The effects of the budget battle ranged from the poignant to the symbolic. A social program that provides food to poor women and children was hit and the Statue of Liberty was closed to visitors. Under the Capitol, where rival clans of lawmakers failed overnight to find an eleventh-hour deal to pass a federal budget, the National Mall was sealed off by a sign marked “area closed.” Prospects of a swift resolution to the crisis were unclear and economists warned that the struggling US economic recovery could suffer if the shutdown drags on for more than just a few days. In a zero-sum battle typical of the divided US political system, Republicans tied new government funding to attempts to delay or dismantle President Barack Obama’s signature health care reform.Each time, their effort was killed by Obama’s allies in the Democratic-led Senate, leaving the government in limbo when its money ran out at the end of the fiscal year at midnight Monday. “This is an unnecessary blow to America,” a somber Senate WASHINGTON: A group of art students take up the staircase of the National Art Gallery as it is Majority Leader Harry Reid said on the closed due to Federal government shutdown in Washington, DC yesterday. — AFP (See Page 21) Senate floor. (See Page 21)
growth and higher non-oil revenues is required to reduce the non-oil deficit gradually,” the Fund said in the statement posted on its website late on Monday. “The implementation of the proposed measures to contain the non-oil deficit should, however, commence in the near term, since delays would result in the widening of this deficit and require larger adjustment in the future,” it said. On the expenditure side, scaling down electricity and fuel subsidies is needed, the IMF said, as they are taking money away from the much-needed infrastructure investments. Like other wealthy Gulf states, Kuwait provides a generous welfare system and does not collect income tax. Continued on Page 13
Gulf’s Islamic banks profitability waning
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GCC uneasy over US-Iran détente US dramatic turn frets Gulf DUBAI: Gulf Arab states are uneasy about the unexpected overture between Washington and Tehran, fearing any rapprochement will come at the price of concessions to their regional rival, analysts say. The six oil-rich monarchies have “fears and apprehensions” about the dramatic turn in US Iran policy signaled by last week’s historic telephone call between presidents Barack Obama and Hasan Rouhani, Gulf Research Centre chief Abdul Aziz Saqr said. “For the countries of the Gulf Cooperation Council, a thawing in the US-Iranian relations could contribute to regional security, but they have reservations over the secrecy that surrounded it, and the nature of concessions,” he said. “There is no rapprochement without concessions,” said Saqr, who is close to government circles in Saudi Arabia. Iran would seek to “widen its regional influence and meddle further in the affairs of its neighbors,” he predicted. Saqr said there was already “mis-
trust” between the Gulf states and their US ally over Washington’s failure to deliver on its threat to take punitive military action against the Syrian government over a chemical attack in the Damascus suburbs on August 21. The Gulf states are staunch supporters of the Syrian rebels and some have provided arms as well as funds. Saqr said that Iran’s determination to take part “actively” in a planned peace conference for Syria in Geneva was a sign of its ambitions. Gulf Arab disappointment at the US change of tack has been evident in the Saudi-owned panArab press. “Just as we waited the strike that he promised to punish the Syrian regime, Obama went and hit his allies,” complained columnist Abderrahman Al-Rashed in Asharq Al-Awsat. “We do not understand why Obama decided to open the door, which had remained shut until now in the face of a regime that (former) US presidents considered as evil.” Continued on Page 13