Public Sector Reform in Saudi Arabia - Case Study Example

Public Sector Reform in Saudi Arabia Table of Contents Introduction ………………………………………………………………………………..3 Key Reforms in Saudi Arabia …………………………………………………………….3 State Administration ………………………………………………………………………4 Economic Reforms …………………………………………………………………………5 Political Reforms ……………………………………………………………………………6 Electoral Reforms ………………………………………………………………………….7 Conclusion …………………………………………………………………………………..10 References …………………………………………………………………………………..11 Introduction The effectiveness and efficiency of Saudi Arabia’s public sector is vital towards the success of the country’s development activities. Enhanced financial management, an efficient civil service and administrative policy, efficient collection of taxes, and transparent operations which are free from any form of corruption, will all greatly contribute to the country’s delivery of public services. Over the last 50 years or so, progress in key areas in countries such as Saudi Arabia has been hampered by tension between leftist and rightist solutions. This is so because Leftist solutions are emphasizing on equality at the price of uniformity, while rightist on the other hand are dwelling on diversity at the expense of inequality. Today we are in a society whereby economies that wish to become more competitive have to provide its citizens with high quality services while at the same time embracing flexibility in order to allow for a high degree of personalization and choice (Michael, 2007). It is this combination of equity, diversity, and need for quality that has transpired as a challenge for public sector development in Saudi Arabia. As the country’s citizen become wealthier, they can be able to independently provide for their health, education and security. When public services of are low quality, the country’s citizens are always unwilling to pay taxes, and if this happens, it is very difficult for a country to maintain its necessary tax rate, whereby once the tax base crumbles, public services are more likely than not to spiral downwards as just some kind of a safety net for the poor. It is due to this background that Saudi Arabia’s king Abdullah decided to embark on some series of reforms that will enhance the image of the country’s public sector. Key Reforms in Saudi Arabia Key areas that are grossly affected by the reforms include; the state administration, economy, education, law, religion, and the electoral system. King Abdullah believes these are the main areas that need to be specifically dwelled on so that the country may regain its heritage across the globe. These reforms have already started working in some key areas whereby they have managed to loosen some arcane structures in which arch-conservative clerics have even been ousted from top posts and forbidden from proclaiming obscurantist fatwas. For instance, the police have been forced to curb their enthusiasms, women are today accorded more freedom whereby they are now allowed to drive cars. State Administration Even though the Kingdom of Saudi Arabia has attempted some administrative reforms, there are still a number of difficulties being experienced, these include; low standard of technology utilization, increasing costs in public sector services, bureaucratic procedures, and overlapping of responsibilities among others. There have been various attempts to reorganize Saudi Arabia public administration. For instance, way back in 1963 the Saudi government signed an agreement with Ford foundation to recognize all the available government agencies and institutions. The government also formed a higher committee for administration reform to control and supervise administrative reform in the country (Shahid, 1998, p.156). During the period between 1962-1979 the country underwent the most significant transformation in its history. The country had managed to create conditions which enabled the political leadership to set the agenda for the country’s development projects. The religious sector was also not spared, because even though religion retained its crucial importance in self-identity in Saudi Arabia, the state was now playing a more central role in religious affairs. In 1964 Faisal became the country’s prime minister whereby he properly exercised on his authority. He formed the council of ministers which assisted in making decision making for the country. During 1975-1980 the country drew up another economic plan which was the pillar for the country’s economic development during the 1980’s. The economy benefited from rising crude oil prices. As a result of these administrative reforms and developments, Saudi Arabia’s central government administration grew in both employee number and new governance divisions (Tim, 2006, p.55). Come the 80’s there were free education and healthcare. During the period between 1980-1985 which was also the third plan, Saudi Arabia decided to raise the rural living standard. With economic recession as a result of declining crude oil prices, the government focused on integrative state building campaign to minimize on economic devastation. It is also during this time that the country’s private sector was encouraged to finance public projects (Philip et al, 1990, p.248). As a result of state administration reforms, Saudi citizens can now access water and electricity at more subsidized rates. There has been increasing number of telephone connections, internet access, increasing hospital beds with free medical services, and also the number of medical and paramedical staff has also grown. By the early 1980’s Saudi Arabia has managed to transform itself as one of the most urbanized states in the Middle East due to its rapidly growing transport infrastructure, and state loans and grants to farmers (Stephen, 2010, p.110). Saudi Arabia’s government has also initiated a new process that will see them overhaul the civil service ministry where it is reported that there are over 75,000 posts that are filled by foreign nationals and they could be replaced by Saudi born nationals. This is so because the country’s official unemployment figure is close to 10% and that the country need to fast track the unemployment issue. The minister for finance has also distributed Billions of riyals in an effort of boosting social security, education, and housing. This initiative is likely to be positive for the poor and also assist the unemployed (Paul, 2011). Economic Reforms A number of key reforms are being undertaken in the country ; these include reducing the widening unemployment rate, stimulating both the domestic and foreign government, and the streamlining of privatization. Recently King Abdulla instructed the government departments to step up their performances by simplifying procedures and maintaining regular contact with those who receive their services. The kingdom is gradually opening up different economic sectors for investors which include; insurance, airlines, and telecommunications as the new engine for economic growth. The country is also reforming its education sector as a means of assisting on economic diversification in order to reduce over reliance on state owned enterprises. This is so because varieties of skills are needed to reduce unemployment and over reliance on foreign labor (AME, 2008). The Saudi government is embracing privatization as a tool of attracting investments in the hope of speeding up economic reforms and eventually creating a more attractive investment environment. Privatization will assist the Kingdom to deal with a number of economic challenges such as structural and demographic changes as well as foreign direct investments (Anthony, 2006, p.73). Some of the key sectors that the country has managed to privatize include; oil and gas, water and electricity, minerals and mining, telecommunications, postal services, postal services, healthcare, insurance, airlines, airports, railways, urban transportation and ports. The Kingdom has so far promoted its free market economy by privatizing some of its 20 major state enterprises, establishing 14 regulatory authorities that oversee reforms, improving on foreign direct investment laws, revising commercial laws, and implementing intellectual property rights laws in order to foster innovations (Anthony Shoult, 2006). Some of the Key economic activities that the country has undergone include: Becoming a member to the World Trade Organization in 2005 Gulf cooperation council customs union agreement and economic integration (2030) GCC common currency In order for economic reform to take root, political reforms are also very necessary and Saudi Arabia through its King Abdullah, has taken the lead in ensuring that there is political stability in the country by enacting new succession law that will ensure that there is always a smooth handover of power due to the inability of the King or crown prince to continue running the affairs of the state because of poor health (Mohamed, 2010, p.18). Political Reforms The Kingdom which is basically a monarch has managed to make some far reaching political reforms over the last few years. To begin with, on February 2009, King Abdullah dismissed the head of the powerful police force. Also the country’s senior most judge Sheikh Salih Ibn al-luhaydan who said that it was permissible to kill owners of immoral satellite TV channels was axed from his job. These reforms have so far delighted the public opinion and also increased investor’s confidence with the country. However for political reforms to take shape as required, the country has to seriously look into electoral reforms which will serve as the mother of all reforms. It is only from political reforms that issues such as corruption and dictatorship can be properly addressed. Electoral Reforms Over the last decade the Kingdom has undertaken vital and necessary steps towards reforming their political scene. Seven main initiatives were undertaken and which involved: Inaugurating new system of succession in the Kingdom Establishing King Abdul-Aziz Center for National Dialogue in 2003 Creation for the National Human rights society Enlargement of citizens to participate in domestic affairs Amending of articles 23 and 3 of shura councils statutes in November 2003 and April 2005 Restructuring government’s institutions to enhance on their efficiency and performance Widening women’s scope for work and giving them more freedom in economic activities Saudi Arabia has made significant progress towards its electoral reforms whereby in 2005 positive aspects of municipal elections were experienced. These included: Enlargement of freedom of expression These particular elections brought about some freedom of expression which enables the citizens to talk freely about Saudi society’s problems and other matters of national interest be it in public places, electronic forums, and also through press. Among the municipal election candidate’s agenda were issues such as; unemployment, poverty, anti-corruption, women’s right to drive vehicles, increase in civil service salaries, among others. There were open democratic election campaigns and even some set out criteria pertaining to free and fair elections were observed, and they included; freedom of speech, freedom of association, freedom to register as a voter or a candidate, freedom of secret voting, freedom to complain on the elections outcome. Of all this, the council met six of the seven and the only exception was freedom of association hat was not fulfilled as expected. Forging new relationship between the public and government For the first time such elections have re-shaped relationships between citizens and government officials on the basis of accountability, transparency and criticism. Citizens are more empowered and public officials are more subjected to criticism and questioning from citizens and media. Citizens in public responsibilities For a long time Saudi citizens have been barred form running public affairs and also questioning those who are mandated to run the country’s business and public life. As a result, a culture of lethargy, unwillingness, and lack of interest developed among Saudi citizens. These municipal elections therefore significantly contributed towards the running of the country by the citizens and they can now feel part of the society due to the empowering that they have received. Reinforcing public collective participation These 2005 municipal elections reinforced the spirit of public collective participation in the country’s affairs. This is so because Saudi citizens are not used to participate in public life when it comes to politics. Creation of new political Culture The 2005 municipal elections directly contributed to the development of a new culture that would ultimately re-order the priorities of the Saudi Kingdom, and because of the elections, National and internal agenda has been pushed forward and becoming the main center of interest for the society at large. In the past, foreign issues dominated interest resulting into considerable interest sidelining the domestic agenda. These elections also played a role in ensuring that the Saudi society reordered its priorities and also focusing mainly on national agendas hence priority was given to national issues while regional and international issues became secondary. Enhancing relationship between government and society With the success of municipal elections, two main objectives were achieved, the relationship between the government and the society was enhanced, and the government’s position at the international stage was strengthened because the elections led into closer working relations between the government and its citizens. Creating new dynamics in Society These municipal elections also led into the creation of dynamics in the whole society. The atmosphere that accompanied the elections was very impressive and also opened up involvement of the country’s citizens in not only the political issues but other affairs of the society in general. For instance, the media had more freedom in discussing and analyzing issues that are directly affecting the country such as escalating price of basic goods, poverty and unemployment. Building and organizing the elections on proper bases The municipal electoral experience was well organized, transparent, and procedures were performed more easily when registering candidates. This encouraged more citizens to participate and also developed a positive image of the whole process both domestically and internationally which clearly outlined the government’s determination to faithfully implement reform project s that are in line which also enhanced the credibility of the government. Government’s neutral position towards elections All the rules and regulations governing the elections were laid down so that the elections would be free and fair. This was done according to international procedures in a very professional manner that showed that the government had no single vested interest of any sort of ulterior motive. This is so because: The Saudi government neither backed nor opposed directly or indirectly any single candidate and all candidates were equally treated with impartiality and reference to all the laws and regulations relating to electoral procedures. Certain government officials such as the chiefs of districts and ministry centers were prohibited from running for elections. The electoral regulations did not bias or disadvantage any candidate but rather implanted fairness and impartiality among all the candidates. The municipal elections were managed with a lot of transparency with a lot of strictness on the time table, using qualified people to conduct the elections, and distributing constituencies within cities and villages in accordance to voters. Conclusion With the reforms that are taking place in different sectors of the Saudi Arabian economy, the Kingdom is set to experience increased trade activities as a result of investor’s appetite towards the country liberalized economy. This would in return enhance on the country’s competitiveness by new investors investing into the country and opening up more avenues in areas such as manpower development courtesy of the skill upgrading program from investors. The country will also serve as a role model from Arabian countries that have off late been mired by political unrest. This political stability is also likely to make the country the preferred investor destination because of its relative friendly political environment. References Shahid Jamal Ansari (1998). Political Modernization in the Gulf. Northern Book Center. Tim Niblock (2006). Saudi Arabia: Power, Legitimacy, and Survival, Contemporary Middle East, Rutledge. Philips Shukry Khoury, Joseph Kostiner, Massachusetts Institute of Technology, Harvard University (1990). Tribes and State Formation in the Middle East. University of California Press. Michael Barber (2007). 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