Canada Global(Web News) Unlike many other countries in the world, neither the economic crisis nor the pandemic nor the war in Ukraine has been able to have a significant negative impact on the economy of the small country of Brunei. During the Corona epidemic, the world The big countries were forced to use the money allocated for the welfare of the people to deal with the epidemic, so even then Brunei was the country whose debt ratio was very low compared to the gross national income. It is only 1.9 percent. But a low debt-to-GDP ratio does not necessarily indicate a country’s healthy economy. Many developing countries also have low debt-to-GDP ratios, but this is
because It is said that the debt level of these countries is low, but this is not the case in Brunei. Thanks to the abundant reserves of oil and gas, this small state has one of the highest standards of living in the world. It is the fourth richest country in the world. According to Ulrich Wolz, professor of economics at Brunei’s School of Oriental and African Studies, a former British colony, Brunei is a petrostate (a state whose economy depends on oil and gas revenues). ). Crude oil and natural gas production account for about 90 percent of its GDP. Brunei’s oil reserves were estimated at 1,100 million barrels as of the end of 2017, which is 0.1 percent of global oil reserves. While the country also has 2.6 trillion cubic meters of gas reserves, which is slightly more than 0.13 percent of the world’s gas reserves. Located on the northern coast of the island of Borneo in Southeast Asia, Brunei borders Malaysia and Indonesia. Members of its royal family, headed by the head of state, Sultan Hassan Al Bolkiah, own a great deal of wealth. No income tax is charged to citizens of Brunei. provides free education and health care up to the level of . And the capital of this country is a clean and peaceful city.
Apart from this, the Sultan of Brunei, who is quite popular among the people, has been distributing plots and houses to the deserving citizens under various government schemes from time to time so that the citizens do not face any housing problem. It is a small country in terms of population. However, its population is less than 500,000 and the total area of the country is limited to 5,700 square kilometers. One reason for Brunei’s low debt is the revenue from the sale of hydrocarbons.
According to Ulrich Wolz, due to this situation, Brunei has built large financial reserves in the country over time, which provide financial support to the government in difficult situations and the government does not go to get loans. “In simple words, the economy of Brunei is quite “Brunei runs a large current account surplus thanks to its fossil fuel exports,” says Professor Volz. This means that the country is a net lender to the rest of the world, but on the other hand it does not need to borrow. While the rest of the world has to rely more or less on financing from foreign creditors, the government of Brunei runs its own system with loans from its banks. The beneficial aspect is that you do not need to buy foreign currency to pay off your personal loans. And on the other hand, the government and its economy keep profits and taxes within its economy. Efficient financial management has been a constant priority for the government of Brunei, and it minimizes the financial burden on its citizens and businesses. All things considered, Brunei has consistently run a current account surplus that has helped finance its external debt. Borrowing costs have remained relatively low in recent years, allowing the nation to keep debt service to a minimum without resorting to austerity measures to reduce public spending. “The country’s heavy dependence on the gas and oil sector can have a profound effect on the country’s functioning as the global energy model is constantly changing. Sultan Hassanal Balkiah of Brunei belongs to the oldest dynasty of absolute monarchs. It should be noted that Brunei gained full independence in 1984, before it was a British colony. Sultan Hassanal Balkiah of Brunei belongs to the oldest family of absolute monarchs, and is one of the few remaining countries where the monarchy is still practiced today. Sultan Hassan became king after the abdication of his father Haji Omar Ali Saifuddin in August 1968. After the independence of Brunei in 1984, he appointed himself as Prime Minister and in 1991 introduced a concept called the Malay Muslim Monarchy. , Brunei became the first East Asian country to adopt strict Islamic Sharia law. But in 2019, after facing strong international criticism and boycotts, Brunei decided to punish those convicted of crimes such as homosexuality and adultery by stoning. Backtracked on their decision. Although the death penalty is still in place for some crimes in Brunei, no one has been executed since 1957.
