KUWAIT CITY, 20 March 2008 — Kuwait’s Emir Sheikh Sabah Al-Ahmed Al-Sabah dissolved Parliament yesterday and set an election for May 17 after a political crisis that delayed economic reforms forced the country’s government to resign.
“We were hoping that our brothers in the two authorities, legislative and executive ... would achieve the aspiration of our people ... and we were patient for a long time,” Al-Sabah said in a speech.
Al-Sabah, who has the final say in the country’s politics, said repeated calls for cooperation between lawmakers and the government were not heeded.
“To protect our homeland and citizens from irresponsible conduct that has crossed boundaries and did not take into consideration past experiences ... and to safeguard national unity I have decided to dissolve Parliament,” he said.
The crisis was caused by a standoff between the Cabinet and Parliament, which has a history of challenging the government. This is the fifth time the Parliament has been dissolved in Kuwait since the house was set up in 1963.
The dissolution followed the resignation on Monday of the Cabinet, less than a year after it was sworn in, complaining of a lack of cooperation from the assembly. Al-Sabah did not say if he had also accepted the resignation of the Cabinet.
Traditionally, a new government is appointed after elections.
Reforms Delayed
The standoff had paralyzed political life and delayed key economic reforms in the major OPEC producer and key US ally. Kuwait wants to diversify its economy away from oil like Dubai and Bahrain.
The bourse rallied to an all-time high yesterday.
Al-Sabah had repeatedly urged deputies and the government to work together for the sake of the country, but to little avail.
Parliament had made progress approving long-awaited reforms such as a reduction in taxes on foreign firms and privatization of the loss-making national airline. But tensions flared again on Sunday when lawmakers demanded a new raise for public sector employees who comprise over 90 percent of working Kuwaitis.
The demands put Parliament on a collision course with the Cabinet that raised salaries in February to counter inflation.
A bill to set up a financial regulator and open up the stock market to more foreign investment has been stalled in the house.
Deputies have also forced the Cabinet to set up a fund to buy back bad debts Kuwaiti nationals incurred from shopping sprees, in a blow to plans to reduce dependence on the state.
The previous Cabinet had resigned to avert a parliamentary no-confidence vote in the then health minister, a member of the ruling family.
