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Regression of living standards
Published in The Saudi Gazette on 24 - 01 - 2013


Abid Khazandar
Al-Riyadh newspaper


According to a local newspaper, the prices of commodities have gone up by 35 percent during the past decade.
Prices that registered 116.1 points in 2002, rose to 156.4 points in 2012. In contrast, there are no statistics to indicate a proportional rise in the incomes of citizens.
However, if memory does not fail me, the salaries of government employees were increased by 15 percent, which is still far less than the 35 percent consumer price increase. There were no increments made in the benefits of retirees and the beneficiaries of the General Organization of Social Insurance. I do not know if the salaries of private sector employees were increased though the majority of private sector employees probably did not get an increment.
Also, rent prices have increased due to the increase in real estate prices, a phenomenon particularly felt by residents of major cities. According to a recent study, rent consumes between 40 to 60 percent of citizens' incomes.
Our rapidly growing population has adversely affected the level of service the government provides in the fields of education and healthcare.The regress in the level of educational services in government schools and medical services in government hospitals has prompted many citizens to enroll their children in private schools and seek medical treatment in private hospitals or abroad. All of this is surely eating away at incomes.
Furthermore, a lack of a decent public transport system means citizens have to buy cars, pay insurance and further see their paychecks dwindle. For working women, transportation costs are even higher as they have to hire drivers.
All of these factors have convinced me that the living standards of citizens have gone down. As part of a solution, I suggested in an earlier article that a housing allowance be given to citizens who are government employees.
The allowance should not be less than 30 percent of their salaries. This suggestion may be part of a larger solution to the problem though it does not cover all citizens.
We must also fix an acceptable minimum wage for Saudis working in the private sector. And for women, they must be allowed to drive.


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