Most Kuwaitis expect a well-paid, comfortable government position, and are not attracted by the long hours and pressure of corporate life. The IMF acknowledges this dilemma. Underpinning the structural flaws is the economy's chronic dependence on oil revenues. Oil and gas accounted for 45 per cent of GDP in 1999 - roughly double the level in the UAE, which enjoys similar hydrocarbon reserves and population. However, economists estimate that 75 per cent of Kuwaiti economic activity is generated by the government, which relies on hydrocarbons for most of its revenue.
Independent observers argue vociferously that reform is vital.
The IMF agrees. The government broadly shares this view, and proposed an extensive economic reform programme in summer last year, when low oil prices forced ministers to confront the reality of the situation. The proposed changes cover areas including foreign investment, taxation, privatisation, labour markets and the Kuwait Stock Exchange. Implementation, though, has been a long time coming. Kuwait's National Assembly is generally believed to be behind the slow progress.