ABSTRACT
The methodological issue is one of how to evaluate the role of the oil sector in the economic development of Kuwait. Such an evaluation is made possible through the analysis of available data, which allows the relative importance of different contributions from the oil sector to be shown. Each contribution represents a channel or an economic variable contributing to the growth of the whole economy. These contributions can be grouped into three basic categories: product; factor; and market. Kuwait entered the field of foreign aid early in its economic development. It has extended this aid to others through three main channels: the Kuwaiti Fund for Arab Economic Development (KFAED); the General Authority for South Arabic and Arabian Gulf States; and state reserves and the government budget. This authority began in 1962 under the title Gulf Permanent Assistance Committee (GUPAC) and was intended to provide grants to the Gulf Trucial States, mainly for social projects such as health and education.
