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Volume :3 Issue : 12 1977      Add To Cart                                                                    Download

FACTORS CONTRIBUTING TO INCOME EQUALITY DISTRIBUTION IN KUWAIT

Auther : Jassim K. Al-Saadon

 

         This study deals with factors contributing to income equality distribution in Kuwait.  Theoretically speaking, income distribution coefficient in Kuwait should be low because there are certain factors that make of Gini index in Kuwait resemble that in the advanced capitalist states.  These factors are:

1-   The absence of rural and urban division and the problems of traditional and modern sectors resulting there form

2-  The lack of real development and economic progress during the early periods of oil era.

3-  The individual’s income level which exceeded the 500 U.S. Dollars level at which the process of improving income distribution should begin, and the important role played by the public sector.

         The writer adds that it was possible to keep Gini coefficient at a low rate by following suitable policies since the beginning of oil era when that coefficient was low.  He also notes that such coefficient was relatively high in 1972-1973.

         The writer explains that the reasons that lead to the rise of this coefficient are based on a group of theoretical factors which had practical effects on it i.e. people characteristics in the initial stages of oil era, the biased policies of public expenditure, taxes and the economic and social skeletal structure of Kuwait.  Such factors, the writer concludes, worsened the process of income distribution greatly.

         Finally the writer confirms that ill distribution income will certainly result in bad effects on the society.  Furthermore, not any group of society would continue forever to have the nest advantages by less cost and at the same time shift the majority of costs and burdens to the group which receives the least of these advantages without having caused several problems for the society.

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