Localisation with a politicised flavour, and survey some of the policy ripples it has created

Until a few years ago, the Kuwait Airways Corporation was regarded as one of the most important and successful Arab airlines.

At the present time, however, it is burdened by cumulative losses estimated at $850 million (Dh3.06 billion). Of this sum, $135 million (Dh436 million) was accumulated just in 2004. The airline is laden with accumulated debts totalling $1.6 billion (Dh5.46 billion)

Consider: 50 per cent of the airline's employees are Kuwaitis receiving salaries account for 74 per cent of the airline's total expenditures on salaries.

This means employing a Kuwaiti employee costs three times what is costs to employ an expatriate.

A statistical report indicates the airline employs 1,000 Kuwaitis whose contribution to the company's bottom line is far from clear. The surplus workers cost the company at least $50 million (Dh180 billion) annually.

This situation has nothing to do with economics, nor with successful economic management. Rather, it has to do with political interventions intended to elicit approval from voters.

Indeed.