Introduction
Higgins (2013) argues that as we continue to approve our reliance on the earth’s available wealth, perhaps we have failed to acknowledge the interconnection between earth and the economy. The intensity of such reliance has been obscured by our perpetual search of happiness through economic growth and materialism; or perhaps, people would fail to understand what to do if their countries came short of attaining greater GDP. This paper seeks to explore the economic and industrial development of Kuwait, and its effects on the ecosystem. The issue of worsening of the already existent stress environmental degradation due to weaknesses in policy, legislation, and failure of institutions will be will be highlighted.
Impacts on the Industrial and Economic Growth
As a manufacturing center, Kuwait has many competitive edges over its neighbors. Located atop of the Gulf positions the country nearer to some of the largest economic regions in the Middle East and with an eased access to other GCC member nations. The country is located amidst the affluent European economic regions and the rapidly growing markets of Asia and Africa (The Oxford Business Group 2016b). The wide capital base, vast oil reserves, a young population, and government investment all place the country at a cutting edge position (Nasser 2013).
Buoyed by a surge of oil revenues, a growing young population, and robust public finances, Kuwait is making a robust move towards economic growth after a strong rebounding from the 2008 financial crisis (The Oxford Business Group 2012). In efforts to diversify its economy, Kuwait has moved to invest in its infrastructural capacity. Programs aimed at boosting oil production enrolled by the country have stimulated the growth of construction, plastics and petrochemical industries. Alongside continued efforts to improve the country’s labor force, as well as nurturing of small and medium-sized enterprises, the country’s industrial growth is set to rise in the decade.
The production of chemicals is one of the leading lights of Kuwait’s industry and therefore significant economic contributor and one of the major export earners. The industry has emerged as the center for the country to diversify its earnings and boost the value obtained from the rich mineral background. Whereas the manufacturing sector is not as large as its neighbors- partially due to the small populace, the industry is a vital contributor to the country’s economic magnet for investment and a source of non-oil export earnings (The Oxford Business Group 2016b). While oils, mineral fuels, and related products are Kuwait’s largest export earners, manufactured goods have overwhelmingly grown to one of the highest income generators in the country (The Oxford Business Group 2016b, par 3-4). Chemicals generated $1.71bn in 2014, making them the second-biggest export earner in the country. Plastics brought $1.09bn and became the third most significant export income generator, then electrical and electronic equipment ($172m), iron and steel ($201m), machinery ($294m), fertilizers ($329m), and vehicles at $1.02bn (The Oxford Business Group 2016b, par 3-4).
Air Quality
The oil industry of Kuwait and processes thereof produce significant amounts of air pollution from the burning of fossil fuels while fracking and drilling, processing, storing and exporting oil (Mostafa & Tawfik 2015). Oil fires after the First Gulf War and pollutants released from continued mining have thereof caused damage to people within the country as well as the neighboring areas (Nasser 2013). The inhalation of ashes has linked to a significant rise in cases of bronchitis, asthma, shortness of breath and even death in some cases. Such effects continue to pose systematic threats to the country’s economy since people spend more on healthcare as well as taking health leaves from work.
The country is extremely dependent on oil, thereby perpetuating the problem of air pollution. Whereas efforts have been amassed toward reliance on more renewable energy sources, the global and domestic dependence on oil has continued to perpetuate production. The government has taken measures to mitigate air pollution associated with oil drilling, including stricter standards for the emission of pollutant gasses in addition to developing an emissions trading program with the industry’s primary customers. Policy proposals including taxes on oil plants that emit greenhouses gasses above the pre-2010 levels and well as subsidiaries for industries utilizing green technology.
Effects on Biodiversity and Agriculture
Nasser (2013) explains that climatic changes have adverse effects on hydrological, biochemical and biological functions of wetlands. Most land in Kuwait is arid; its deserts are home to several varieties of annual plants that constitute of over 90 percent of the plants in the country. The productive marine ecosystem and the comparatively lack of depth of the Persian Gulf thereof supports several varieties of a loft generative and fertile coastal ecological niches comprising mangroves, algal beds, intertidal mudflats, coral reefs and seagrasses which support several fish species, with some becoming endangered (Nasser 2013, pp. 6-13).
The greatest negative ecological impact will be on the already worse aquatic life within the country’s coastal stretch as a result of anthropogenic activities (Carlisle 2010). The rise of seawater temperatures will have an adverse impact on the reproduction of shrimp and fish and has the potential of causing a large-scale exodus of aquatic life to other areas, thereby causing negative consequence for the Kuwaiti and neighboring GCC fishing industries (Nasser 2013). The migratory routes of bird will also be negatively affected. Desertification and unpredictable rainfall patterns may also result in the loss of plant cover, thereof floods and runoffs. Cherniwchan (2012) posits that agricultural production is forthwith reliant on the prevailing weather and climatic changes. The possibility of changes in precipitation, carbon (IV) oxide concentration is expected to have an adverse impact on agricultural production.
Water Shortage Problems
The International Monetary Fund (2015) explains that the geographical location of the country in an arid area alone is a disadvantage regarding water availability. Exacerbating this issue is climate change. The state’s natural water per capita availability is among the least in the world. Compounded to this is the per capita consumption of water averaging at about 450 liters per day, whereas the available water is less than 100 liters per day – a figure that is steadily plummeting.
According to Carlisle (2010), the country’s lack of permanent lake or rivers means that it has to rely heavily on the ground and desalinated water to meet its industrial, domestic and agricultural requirements. More than half of the country’s water is obtained through desalination, positioning Kuwait as one of the highest per capita desalinated water producing countries. With the unprecedented issue of climate change, fears arise as to the balance of water demand and supply becoming a difficult hurdle for the government. The over pumping and overexploitation of exhaustible groundwater and non-sustainable policies on water management are major factors leading to depletion of groundwater resource in the country.
As the water was significantly polluted by the First Gulf War, domestic and international scientists believe that there exist no significant ways to clean Kuwaiti water sources due to the presence of highly diluted chemicals (Carlisle 2010). The continued mining and expansion of the oil industry poses a significant threat to the already meager and trite precious but poisonous water sources (White 2013). The country still continues to store millions of oil in wells proved to have leakages thereby resulting in seepage of chemicals deep into the earth. These chemicals are continuously being pushed into the nation’s aquifers that continue to depreciate. Carlisle (2010) empathizes that for these issues to be addressed, the government notably has not taken significant steps, regulatory or political to prevent further pollution of water sources other than public education on ways to identify polluted water sources; neglecting systematic issues associated with pollution.
Cost of the Damage and Long Term Effects
Information from the social, economic and environmental damage from the drilling of oil from the region is limited. After the 1991 Gulf war, the devastating damage and environmental terrorism inflicted on Kuwait’s oil industry continues to haunt the country. Iraq forces are documented to have used the scorched earth policy to destroy more than 800 Kuwait oil wells, spilling over sixty million barrels of oil (International Monetary Fund 2015). Nasser (2013) posts that the release of over 10 million barrels of oil into the Gulf affected a coastline of 1500 km and costs over $700 million to clean up. The cost of environmental contamination and pollution approximately calculated at $40 billion.
The destruction of sewage treatment plants in Kuwait led to the discharge of 50,000m3 of untreated sewage per day into the Kuwait Bay (The Oxford Business Group 2012; The Oxford Business Group 2016a; The Oxford Business Group 2016b). Based on the International Monetary Fund report (2015), inhalation of smoke, smoke droplets and the consumption of contaminated water has the possibility of causing an additional half a million cancer deaths over several decades. Exposure to oil contaminations and other radiological materials associated with oil drilling has been acknowledged to cause neurodegenerative disorders, respiratory, bone and lung diseases, congenital disabilities and chromosomal abnormalities.
The Hurdles
The Oxford Business Group (2016a) reports that Kuwait stands as the only country within the GCC with a fully elected legislature; the country has a unique culture of public participation and is projected to continue growing. Even so, critics continue to argue that the country has a liberal but somewhat confrontational political system that has stymied national development and efforts thereof concerted toward environmental conservation of such endeavours. Such turnover has discouraged foreign investment and stalled several fundamental reforms (Carlisle 2010). The proposed collaboration between the US-based Dow Chemical Company and the Kuwait Oil Company to create the world’s largest polyethylene manufacturer – a $17 billion project was scrapped horribly in December 2008 at the insistences of parliamentarians who balked at the cost of the investment (The Oxford Business Group 2016b). Although political uncertainties within the country continue to throw doubt over development projects, the is a common sense of urge among lawmakers and ministers that it has indeed come to the time to collaborate and ascend the country’s interests.
Efforts to Clean-Up: Stakeholders
Carlisle (2010) notes that the water and oil operator of Kuwait – Kuwait Oil Company (KOC) – approached several international consultants to design a master plan undertaking to remedy environmental damages caused by the 1990-1991 Gulf War and the effect thereof of drilling. The project is a significant second shot by the Emirates at rehabilitating some of the 100 Km2 of Northern Kuwait stippled by over 2,500 oil lakes padded by concentrated salt debris and dirty oil that have combined with desert sand (par 3). The country’s unsightly oil lakes resulted from fire crews using seawater to thoroughly put out oil well fires (par 3-5).
The assemblage of the lakes 25 years later have infiltrated deep into the earth, thereof contaminating the country’s fresh water acquirers, and killed flora and fauna within the delicate desert ecosystem. The Kuwait National Focal Point (KNFP) was launched to oversee the implementation of environmental undertakings in the country. In 2007, the KNFP tendered a contract similar to the KOC’s contract but disastrously failed to award it (par 6). Carlisle (2010) 0elaborates that the Canadian Oil Recovery and Remediation Enterprises is one of such companies contending to be awarded contracts to clean-up Kuwait. The Toronto-based environmental services firm with offices in Dubai has teamed up with the waste management contractor termed National Cleaning Company of Kuwaiti bid an estimated $3.65 billion of remedial projects expected to be launched by Kuwait in the next decade (par 5-6).
Environmental Standard and Policies of Environment Public Authority
According to The Oxford Business Group (2016a) report, concerns for the environment has no doubt become one of the most important Kuwait plans and priorities. The subject of preservation that governments elsewhere have been demanded upon by global organizations such as the United Nations and other civil organizations to address the worsening environmental lethargies that pose a threat to life on the planet. The government of Kuwait has undertaken several significant milestones.
The Public Authority for the environment was established under the enactment of Executive Regulation Law No. 21 of 1995 – later amended by Law No. 16 of 1996 (Environmental Public Authority 2016). The Kuwait government in pioneering the areas of environmental protection has issued a decision to the No. 21 in 2001 with regulations of the Act Establishing the Public Authority for the Environment, defining 89 articles of the law with requirements and obligations to be followed to maintain the external and internal resources free from pollution. (par 2-3).
Conclusion
The continued recognition of our dependence on the earth’s resources, perhaps, has made us fail to realize the interdependence between earth and the economy. The intensity of such dependence has been graved in search of happiness through economic growth and materialism. The importance of the long embraced but superficially addressed interdependencies are that there exist limits as to the earth’s natural resources and thus to any economic growth dependent on them, if not honored, will significantly influence the future. But amid all these, existent is a need to strike a balance between adverse developmental effects and the benefits thereof accrued.
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