How Can Political Factors Affect Finance In Kuwait Research Paper

How Can Political Factors Affect Finance In Kuwait - Research Paper Example The wave of democracy in this country is based on the decision to control oil companies. This is because over 35 percent of the world’s energy consumption is based oil fuels. It is believed that the pivotal factor affecting democratization in Kuwait is the production of oil. This is because the entire economy of Kuwait revolves around oil and other hydrocarbons investments. In addition, the government provides security and employment of people because of acceptance in the recent political order. However, it is also clear that royal Al-Sabah family has ruled the country with an iron fist without detaching themselves from the society and its people due to their vast wealth. The factors of democratization engage in recreation, an essential responsibility in the society of Kuwait. This means that the stronger these institutional factors are entrenched into Kuwaiti’s society the more democracy is achieved. Due to these democratic elements, Kuwait is the chosen country of res earch on how political factors affect finance in Kuwait. The investigative factors in Kuwait go beyond state model. This is because oil factor in this country together with other extreme generous welfares gives the basic reasons why the current state of Kuwait is not developed into a democracy nation. In this research paper, I will investigate how the political system in Kuwait has affected its finance and economy. Democratization in Kuwait Over the years, Kuwait has achieved a transition from non-democratic to a democratic system. However, in order to achieve full democratization in this country, some degree of liberation must occur in the economy. In addition, political liberation must be achieved in order to have economic growth and development. This means the expansion of public space through recognizing and protecting civil and political liberties. In Kuwait, the line between democratization and liberalization is always vague to an extent of confusion (Thuroczy 2010). Although Kuwait has stable political system with citizens voting for their preferred candidate in free and fair elections, the country faces some limitations on how oil is managed. This is because the government collects no key taxes from other resources and thus relies on income achieved from oil and other foreign investments. The effect of oil in this country is therefore, considered the main cause of lack of economic and political reforms. Additionally, other aspects are overlooked and play a great role in the development of politics in Kuwait (Thuroczy 2010). According to UN’s development index, Kuwait is a highly developed country compared to other countries along the Persian Gulf. Although there is no doubt that oil in this country has increased education and income levels of people in this country, there are massive troubles in the welfare of the state (Thuroczy 2010). In addition, there is no maximum guarantee in the employment of the youths in this country. This indicates tha t oil in this country is the biggest hindrance to the progress of democracy and economic growth. Political Analysis It is worth noting that common stock refers to the stake that a person or a registered company owns in a given organization. Such stake gives such a person or organization the power to make important decisions such as voting in the organization. The difference between common stock and preferred stock is that every stakeholder in case of bankruptcy has to be paid first before the common stock holder receives anything. Politics play a critical role in the success of any given organization. This can be attributed to the fact that all actions of an organization have to adhere to the