31 December 2015By Abdulrahman Al-Rashed
I do not think that the pricing decisions announced by the Saudi government is
a case of belt tightening as some have said. They say that these decisions are
temporary and a response to the terrible decline in oil prices that aim to
reimburse huge losses suffered by the Saudi government. However, according to
what was announced, the pricing decisions are corrective and are not austerity
measures.
The cost of filling your petrol tank in Britain is around $100 whilst in Saudi
Arabia, it is only $10. Whether the price of a litre is cheap because of
subsidies or is priced according to the market, the price is not the issue.
Rather, the issue is the need to raise the income of citizens. The economy
needs to grow so that the country, and not only the government, becomes rich.
The financial capabilities of a family should be adequate enough to buy goods
in full without government help.
As for the politicians, it is easier for them to pay subsidies and employ the
unemployed. However, there will come a day when the state will be unable to
continue and the state and citizens will both pay the price, at which point
the pain will be more severe and implementation will be harder. Price
correction is a necessity in order to lift the heavy burden of subsidies off
the state's back. The most important thing here is that all of this plays a
part in changing the philosophy of the economy and its dynamics. Many will be
patient with what they are not accustomed to, i.e. the rising of prices as a
result of the government decreasing subsidies, on condition that there is real
economic and developmental reform. This is what the government is promising
and it is a very big challenge.
The task of reform and development is a complex operation. It requires the
correction of education from beginning to end, the provision of support,
changing inactive bank investment interests and the introduction of modern
management concepts. In addition to this, the map of industries needs to be
modified; women need to be encouraged to work in order to strengthen the
incomes of their families; social habits of depending on others must be
fought; failing governmental institutions must be brought to account and a
programme to fight corruption at all levels must be adopted.
Al Rashed is the general manager of Al -Arabiya television. He is also the
former editor-in-chief of Asharq Al- Awsat, and the leading Arabic weekly
magazine, Al Majalla. He is also a senior Columnist in the daily newspapers
of Al Madina and Al Bilad. He is a US post-graduate degree in mass
communications. He has been a guest on many TV current affairs programs. He
is currently based in Dubai.
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