Drastic Steps To Preserve Stability

August 2008 | Political Risk Alert

The deportation of around 1,000 Bangladeshi workers from Kuwait seems to us a drastic reaction to the recent riots and protests, particularly given that parliament is considering raising labourers' wages anyway. The move echoes the Bahraini one, whereby the authorities in Manama threatened to deport all Bangladeshis, and stopped issuing work permits to Bangladeshi applicants, following a murder, and supports our view that governments in the region are feeling the pressure of inflation, and are concerned about its impact on political stability. Deporting labourers will only put further pressure on the labour market. pushing up business costs further and adding

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