During my MBA studies I've made research on Kuwait's Privatization Law. The
research is in 29 pages. I selected the Conclusion and Recommendation part of
it to put it hear. If you want the whole research I will provide you with it.
Conclusion and Recommendations
Privatization law in its current
form is not sufficient to achieve privatization benefits. The competition will
be limited lowering the quality of goods and services while prices will soar
without an added value to consumers. The law is not well aligned with other
laws and that will create many conflicts between laws. Kuwait had history of
weak law enforcement and privatization law is not different from them.
Therefore, the faith of success implementation of laws in Kuwait does not
exist.
As seen from what I have discussed
above that the major issues of the privatization law is not related to the law
itself but it is related to the whole system of regulatory framework and the
implementation of the privatization in coordination with this framework.
However, to be part of the solution
(not the problem), I have plotted my recommendation in a comprehensive work
process with a continuous improvements emphasis shown in figure 2. The write up
of the recommendations as follow:
1.
The Kuwaiti government
should develop a clear economic vision. The vision must specifies what is
Kuwait’s economic future should look. This should be support by a media
campaign identifying the benefits for the nation to enhance the awareness of
public and reduce future potential resistance.
2.
Planning then follows.
Planning has two aspects; the Strategic Planning and Regulatory Framework:
2.1.
The first step of the
strategic planning is to define the economic strategy. The economic strategy is
the overall plan of implementing the economic vision.
2.2.
After setting the strategy,
economic objectives is developed in a specific span of time.
2.3.
Then the model and
structure of the economy is developed. The model will include the privatization
as one of the means of the economic vision. The structure must follow the
strategy for success implementation.
2.4.
Now we switch to the
regulatory framework. At this point only, the government will develop the
privatization that is aligned with the economic vision and strategy.
2.5.
After developing the
privatization law, the government must review other laws and revise them (if
needed) to ensure that all laws seamlessly integrated with the new law and
support it.
3.
Implementation of the
privatization law will have the following steps:
3.1.
Assign Privatization Panel to carryout the
implementation of the law.
3.2.
The panel then will develop the executive
rules and detail procedures of the privatization law.
3.3.
The panel will be responsible to develop
monitoring framework of the implementation and compliance of the law. This
monitoring process should be based on criteria driven from the economic
objectives (step 2.2.)
3.4.
Implement the law. Here is the step where the
law goes live and economic agents start using it.
4.
Monitoring the law
implementation is critical element that ensures that the law is getting the
benefits expected from it. Monitoring should be in two aspects:
4.1.
Monitoring the
effectiveness of the law and it is getting the economic objectives that is set
for it.
4.2.
Monitoring the performance
of the privatized companies. This monitoring based on the prices and quality of
goods and services provided by the companies. In coordination with other
related laws.
The
monitoring process should provide feedback to the planning process. If the
feedback was negative, the planning process will be re-activated following the
subsequence steps. The penalties need to be elevated to discourage lawful
actions.
5.
Finally, the privatization
should be gradual going through the phases shown in figure 3. Privatization
phases is crucial for the success of the project as Kuwait system is close to
social system and it should move slowly from public to privatization.
Therefore, gradual privatization is the safest way to implement privatization
in Kuwait, as we need to walk before we run.
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