Agricultural subsidies in the GCC between cost and benefit: The case of Kuwait

Kuwait has to review the current and prevalent agricultural subsidy program, in order to present a strategy to its restructure agricultural subsidies

Agricultural reform has become of pivotal interest for many governments in response to the requirements of globalization and economic liberalization, which are embodied in the World Trade Organization (WTO). In Kuwait agricultural reform, which is essentially a reform of the subsidy program operated by the government takes on an additional simultaneous objective - and that is in fact designated as one of the priorities for the government – to increase the productivity and efficiency of the sector’s utility of the subsidies that are allocated to the agricultural sector, which today exceed, K.D 100 million, a 25% increase over the previous year.

Hence, it has become essential for the concerned authorities in the State of Kuwait to review, evaluate and reconsider the current and prevalent agricultural subsidy program, in order to present a strategy to restructure agricultural subsidies that is constructive to the agricultural sector in Kuwait and permissible by the WTO since Kuwait is a member. Integral to this process is a thorough economic impact analysis of consumers and producers, in order to consider the expected economic and financial impacts of various reform scenarios on these groups before introducing reforms.

Last updated Tuesday, May 21, 2013