Egypt is a country that clearly shows that economic, social and political foundations are more important than population growth in determining Egypt's economic growth. According to the article "Egyptian President Blames Birth Rate for Poor Economic Performance" by Brian Carnell, the problems that Egypt is facing are not due to its rapid population growth, but rather due to Egypt's economic policies that discourage foreign investment. Although Egypt is trying to shift to a market-oriented economy it has not yet been able to do so properly and the government still plays a significant role in the economic process. In fact, only "35% of the industrial production and 20% of exports originate in the private sector," Todaro points out. This still makes Egypt a highly bureaucratic country which often impedes the process of investment. Due to the badly organized administrations it can sometimes take months to receive a permit for a certain project. This definitely prevents many investors from coming to Egypt. In addition, Egypt's political structure is often important in determining economic procedures. These factors make investment a tiresome task and many investors therefore look for other options. Unfortunately, the lack of foreign investment is a problem that hinders Egypt's economic growth.
Another important aspect to consider when looking at Egypt's economic development is the society itself. One of Egypt's problems is low productivity, which can be attributed to the lack of skilled workers and unemployment. Although Egypt might offer many schools and universities, they are still not sufficient to appropriately educate the whole population. In addition, the level of education that Egypt offers is not very high and can therefore hardly contribute to the production of skilled labor. According to the book Tarek Heggy's Selected Works: Essays on Egypt's Cultural Dilemma, "Egyptian education is a closed system, detached from contemporary realities and isolated from the common cultural heritage of mankind, without which no educational system can hope to produce individuals capable of enriching their nations." Heggy clearly shows that the Egyptian Education is very poor and that it is therefore impossible to produce skilled workers. This is definitely a cause of underdevelopment and the lack of economic achievements.
Although Education is an important platform on which success can be built; it is not necessarily a guarantee to prosperity. Natural resources could also play an important role in achieving economic growth. Unfortunately, Egypt has not been endowed with many natural resources and therefore relies to a great extent on imports to supply all of its food needs; grain and seeds are such examples. This is definitely a constraint to the economic development of Egypt.
When one looks at Kuwait, however, the situation is quite different. Yes, Kuwait does indeed have a small population, which Neo-Malthusians would probably argue makes it such a prosperous country. However, a large population, if effective, must not always be a hindrance as can be seen in the United States where it is an asset. Unfortunately for Egypt, population growth means that under the ineffective political and social system, economic development will be further strained. Kuwait's small population might contribute to it being more prosperous; however, its wealth of oil is what really makes Kuwait such an affluent country. Kuwait was a country that used to rely on trade, fishing and pearl-diving. In 1938, however, oil was discovered in the desert of Kuwait; the Al-Burqan field was one of the largest and most productive fields in the world. Although Kuwait was working with foreign companies, its company Kuwait Oil Company, which was nationalized in the 70s, received the biggest share. This probably enabled Kuwait to keep an upper hand instead of being exploited. The oil also attracted foreign investment which is very important for economic development. The revenues that Kuwait gained from the oil industry could also be used to further invest in the country and different companies, oil refineries in particular, were established. The income from the oil exports also enabled continued economic growth. Nonetheless, Kuwait is not as rich in other resources, such as minerals; and industrialization in manufacturing is rather slow. In addition, it lacks skilled workers which are definitely important in order to achieve economic advance. While the oil industry remains the most important industry for Kuwait's economy, other industries continue to be small. Although the government did encourage investment through giving loans and developing the infrastructure, it places more emphasis on investment abroad and investment in education and healthcare at home. In fact, Kuwait also places much emphasis on female education and women make up one third of Kuwait's workforce. Nonetheless, the oil industry is still the determinant of economic growth and makes Kuwait one of the richest countries in per capita income. This shows that it is not the size of Kuwait's population that enabled economic development, but rather the discovery of oil.
The Neo-Malthusian Theory might prove right when applied to other countries; however in the case of Egypt and Kuwait there are other factors that hinder or encourage economic development.
Bibliography
Carnell, Brian. "Egyptian President Blames Birthrate for Poor Economic Performance." 1 December 2003. 30 March 2004 <http://www.overpopulation.com/print/articles/2003/000081.html>.
Heggy, Tarek. Tarek Heggy's Selected Works: Essays on Egypt's Cultural Dilemma. 23 April 2004 <http://www.heggy.org/books/egypt/contants.htm>.
"Kuwait." AllReferReference. January 1993.24 April 2004 <http://reference.allrefer.com/country-guide-study/kuwait/kuwait29.html>.
Todaro, Michael P. Economic Development. London: Addison Wesley Longman, 2000.
