Enhancing the macroeconomic model for planning and the housing care program

The 2014/15 Knowledge Sharing Program with Kuwait aims to enhance the macroeconomic model for planning and the housing care program. Kuwait launched the first five-year development plan (2009/2010-2013/2014) to achieve the country’s long-term state vision “Kuwait 2035.” The five-year development plan plays a crucial role in realizing this vision. After completing the first plan, Kuwait prepared the second five-year development plan (2015/2016-2019/2020) and recently kicked it off. The first 2014/15 KSP project is integrally connected with the five-year development plan. The second five-year development plan has quantitative targets which are mainly based on the macroeconomic model. However, the ME model which was utilized in the first five-year plan has to be revised, since the old model is now inadequate in performing certain policy simulations. The model is too simple to explain the structure of the Kuwait economy and consequently needs major improvement. (The rest omitted)