Officials in the Kingdom believe we are witnessing a golden economic era which many people envy. When I view this golden era from the perspective of sustainability, the picture tends to turn gray and gloomy. Let me explain.
Current statistics indicate the following:
- Our individual and government production levels are very weak.
- Our consumption and spending are too high.
- Our population is rapidly increasing at a rate higher than normal.
- Our water is depleting.
- Our oil resources are being continuously depleted to satisfy the production needs of Western countries and to fulfill our consumers' needs. Geologically speaking, no one knows what will happen to our oil and gas or to the future price of these two products.
- We have a high rate of administrative and financial corruption.
- Transparency and accountability are very weak.
- We have a large number of expatriate workers.
- Our education system is poor; the creativity of our generations is not being tapped and our Saudizaton system continues to waste the time and minds of our young people with no practical solutions in sight in the near future.
I am very concerned about the future of each and every child in our country. I am completely obsessed with this idea and I cannot help but wonder what kind of future our children will have. I am annoyed at the increasing level of government spending and the excessive consumption of individuals. I am annoyed at the giant ships anchored in the ports of the Eastern Province waiting to fill their tanks with our oil to sell in international markets. The billions of dollars that we earn from this are allocated to the different sectors of our budget. The largest part of the budget is earmarked for consumption while the smallest part is used for productive investment.
When I look at the volume of imports in the year 2013, I find that it reached SR574.1 billion. Then I look at the increasing number of babies born every day. Fifty percent of the Kingdom's population is composed of young men and women. The increase in our population means more government spending on education, housing, health and other services.
The future of our only source of living, which is oil, is not certain. Several studies conducted by renowned institutions and research centers have cast geological, economic and political doubt on our economic sustainability based on oil.
In light of the above, I wonder how we are going to provide for future generations and where we are going to get the billions of Saudi riyals needed to import the same volume of services and commodities, if we continue to spend more and produce less. What will happen to our future generations if political and economic conditions jeopardize our revenue from the oil market?
When I look around, all I see is extravagance, squandering, laziness, little production and ever greater consumption. We do not have plans for the future. It looks as if the Saudi government and people have deleted the word "future" from their dictionaries. The way we think and act does not signify that we are preoccupied with the future. The only things we seem to care about are the present, the budget, government grants, loans, the development of land and prosperous living.
Even worse, this present with all its economic shortcomings does not provide social justice for all citizens. In other words, those with high positions get the most financial benefits while those with small positions get the least. The majority of the poor benefit little from our economy. Some would say: Why do you not look at the gigantic projects, the fast trains, the great economic cities, the huge factories and businesses, the mega banks, the multiple government funds that give loans, the housing projects, and the expansion projects of the Two Holy Mosques?
I completely agree there are huge projects being implemented on the ground. However, I have reservations about the decisions taken to implement these projects and the funds spent on them. More importantly, all of these current projects and achievements cannot be viewed as a solid human and material production base that can survive the violent earthquakes that might be caused by the unknown, or let us say the uncertain, future of oil.
At present, the individual and government production levels are poor and very weak. It is hard to rely on this present and build a production base that will guarantee the future generations a decent life, a life that will satisfy the needs of consumption, investment, defense, security, education, housing and health. I am talking about a sustainable and growing economy that provides citizens with prosperous living conditions and the country with freedom and honor.
Some senior officials, especially ministers and businessmen, as well as global financial institutions tend to envision an optimistic future for current economic plans and strategies, while the reality as many, including myself, see it is surrounded by risks.
I do not blame the general public who are busy making a living. But I fail to understand why senior officials do not revise economic, financial and oil plans and strategies. We have to make sure we are on the right path. Our national economy is based on oil only. The economy is similar to a tent that stands with only one pole, i.e. oil. If the pole breaks and collapses, everyone under the tent will be affected.
I do not claim that what is mentioned above is the absolute truth and reality. However, I have attempted to draw this gloomy picture about the Saudi economy based on statistics and economic studies.
The most effective way to deal with the problem is to focus on developing the ability of our citizens and eradicating poverty. The entire system of education and all educational institutions should be redeveloped in order to make science with all its branches the first concern and ultimate goal of Saudi citizens. By building the minds of our people, we can build creativity and positive conduct.
We should also build strong production bases in order to diversify our economy and make it grow.
It is essential that we should start making sweeping reforms at all levels of our economy without any delay. This requires strong political will that envisages future risks and develops a strategy to avoid them.
© The Saudi Gazette 2014
