Arizona Republic from Phoenix, Arizona on June 29, 1973 · Page 65
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June 29, 1973

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Arizona Republic from Phoenix, Arizona · Page 65

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Phoenix, Arizona
Issue Date:
Friday, June 29, 1973
Page:
Page 65
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Page 65 article text (OCR)

Kuwait drowning in oil money Associated Press KUWAIT - More money than you could possibly spend, A dream for most. But for Kuwait, earning $1.8 billion a year from its oil, it's problem. The little Arab nation with a population of about 800,000 is turning out 3.2 million barrels of oil a day. "The money is coming in faster than they can spend it," says a western diplomat. "You can't build hospitals that fast. It takes time to spend the money. In the meantime, it just keeps pouring in." Total foreign reserves al ready have piled up to be tween $6 billion and $9 billion and Kuwaitis talk of the amount reaching $25 billion or more. This is a significant amount when one realizes that with a population of 105 million, Japan's total foreign reserves are estimated at $20 billion, Kuwait's per capita income — a device used by economists as one measure of a nation's wealth — is $4,375 a year, third behind the United States and Denmark, according to the World Bank; > Kuwaiti officials say there is no poverty. There are , "limited income" people who receive help from the government, such as housing. The big wealth of Kuwait rests in relatively few hands. The country has 1,500 millionaires. According to government figures, 72 per cent of the population is classified as middle class workers whose average annual income is about $5,400 per person. Higher ranking employes and merchants make up nearly 20 per cent of the population and their average yearly income is $21,600 each. The average income of a middle class family this year is $19,000, compared with $15,000 five years ago, official records; show. All of this is clear gain for wage earners. Kuwait has no income tax. Fears also have grown that the nation's long-term wealth might be endangered if the oil is pumped out too fast. These fears have been compounded by concern over damage to foreign reserves created by the international dollar crisis. In the initial years of the Kuwait oil boom just after World War II, Kuwait sheiks built lavish palaces, took $800,000 trips to Europe, enjoyed numerous wives and bought all the air conditioned luxury cars and other expensive consumer goods thev could find. Within a few years, the nation's leading sheiks realized even they couldn't spend it all and decided to share the . wealth. Soon Kuwaiti citizens began enjoying the best financed welfare, state in the world. This included free schooling, including university e d u c a- tions abroad for those who could qualify, free telephone service, free medical care, low cost government housing and lavish government pensions. This was accompanied by massive expenditures on public facilities. Millions of dollars were spent for schools, airports, hospitals with the latest equipment, yacht clubs, ' housing, luxury apartments with swimming pools and one of the world's largest desalinization plants. Kuwait is on the Persian Gulf. Even more projects are in the works. The government has announced tenders for a new $40 million international airport. The Ministry of Public Works has ordered more than $28 million, in the construction of roads and sewers. Over $15 million is being spent on new schools and a new 1,100-hospital complex, In addition, Kuwait is getting ready to spend $500 million to $1 billion on a modern arrny and air force. Even with all this, a breakdown of this year's budget of $V.8 billion shows that 57.9 per cent is for current ex- Pfnditures, 18.9 per cent is for development projects and 2?.l per cent or over $400 million was left over for the state reserves. Foreign reserves have grown at a rapid rate. One economist estimates that overseas reserves now • include $3 billion in government funds, $1% billion held by Kuwait banks and as much as $4% billion invested * abroad by private investors. BULLDOQ Phoenix, Friday, June 29,197,1 the AHitttt Republic MIIIIIIM A- <*l< k :ir;iiuM starts tomorrow Canvas n 9 Sandal Sale • FOR THOSE WARM SUMMER DAYS AHEAD A. REGULAR $12.00 - $26.00 wow *7™- f 16" WHITE ENAMEL EARRINGS B. REGULAR $8.00-$ 13.00 NOW f 4.99 2PR;*9 00 *6.99 Polished white enamel puts the accent on Summer . . . great selection of earrings in pierced and clip styles. Sorry, no mail or phone orders. Fashion Jewelry, 20 Hurry in, save up to 50% and more . . . A huge selection of new-season styles and colors for your summer comfort, all by famous makers . . . You'll want several pair but be early .for best selection. LADY WELDON SUMMERY GOWN 6.99 Cool, easycare polyester/cotton long gown in polka dot or floral. S-M-L Shorty, 4.99; baby doll, 5.99. Sleepwear Lingerie, 24 cotton print pantdresses 11.99 Bright prints in a wide assortment of colors. In nifty pantdresses for all summer. Sketched one from a group. 8-16. Plaza Dresses, 73 '>.'" famous knit play wear 3.99 to 7.99 Orig. $6 to $14. Shorts, T-shirts, scoopneck tops, short sleeve and long sleeve tops, pants. S-M-L, 10-16. Assorted colors. Street Floor Sportswear, 65 IMPORTED SWIMWEAR 13.99 and 15.99 Reg. $22 to $24. Ours alone. Cotton swimsuits. One-piece. Two-piece. Tunics, boy-legs. Sizes 10 to 20 k Active Sportswear, 78 MEN'S KNIT SHORTIE P J 9 S 3.99 Reg. $6 Short sleeve, knee length pajamas. Colorful cotton knit with contrast trims. Men's Furnishings, 91 FAMOUS LABEL KNIT DRESS SHIRTS 5.99 Reg. $7-$8 Famous label short sleeve knit dress shirts in assorted- colors^' patterns. All noriron. Men's Furnishings, 7 SAVE 25%:' LOOK OF SOFA IN SADDLEBACK DESIGN 299.95 Reg, 399,95, Wipe-clean vinyl sofa with comfortable Dacron* polyester cushions, Allow six to eight weeks for delivery, Furniturt, 921 POLYESTER PILLOWS ALL 3 SIZES 3.99 each Head for our pillow sale and save now. Standard, queen or king size for the tame low pricei Cotton ticking, Bedding, 55 COLORFUL BOUNTY GRIDDLE, FR YPAN 2,79.4.69 Heavy aluminum, porcelain finished in gold, avocado or poppy. 8" fry- pan, 2,79; 10", 3,69; 11" griddle, 4,69 Housewqres, 39 rcal8" color compact with rolling cart 299.88 Big 18" diagonal screen. High performance chassis. Full color controls, Includes roll-about stand, Televisions, 72 SCQTTSOALi,i.QSARCQ5 7393 E. McQowell Road FASHION PARK 241 Of. Camelback Road SHOP MONDAYTHRU FRIDAY 9:30 A.M, to 9:3Q P.M. SAT. 9:30 to 6 OPEN SUNDAY 1 $> tq $ CHRIS-TOWN 1607 W, Bethany Horn* Road

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