Interview: Yousef Hussein Kamal: The view from the ministry

Yousef Hussein Kamal could be taking things easy these days. With the economy on track to double in size by 2011, government finances in exceptionally rude health and the infrastructure upgrade programme in full swing, the long-serving finance minister would be justified in sitting back and reflecting on a job well done.

But Kamal, who in March took on the additional portfolio of economy and commerce, has no such thoughts. 'In life, you have to have a challenge and constantly ask questions,' he says. 'You don't want to go to bed at night knowing that you will have nothing to do when you get up in the morning. We have a lot of challenges to face.'

Those challenges are today very different from the ones posed in the late 1990s, when government finances were stretched and the economy was stagnant. Many - such as capacity issues and the need to upgrade systems and procedures - result from the economy's meteoric growth. Others revolve around how to realise a modern and sustainable economy.

The government's current five-year business plan focuses heavily on building capacity and infrastructure. The plan, running up to 2011, calls for the completion of the $130,000 million energy and infrastructure investment programme, a new port and airport to be in operation, logistics centres and free zones to be established, the opening of state-of-the-art health and education facilities, and new systems, procedures and laws to be in place. Says Kamal: 'Everything is in the pipeline. The cash is there, the contractors are there. We are putting a target date of 2011 for completion.'

The headlong rush to modernise has created serious bottlenecks and capacity constraints. It has also fuelled inflation. 'The lack of capacity has led to inflation. But if you have an economy growing by 25-30 per cent a year, inflation of 6-8 per cent is not a problem. Strong growth without inflation: now that would be something,' he says.

Kamal argues that the capacity issue is easing, while inflation is at its peak. He also contends that the decision to pursue multiple projects simultaneously is the right one, even if it can cause extensive disruption and provoke loud complaints from Doha residents. 'It's better to close 50 per cent of the roads for 18 months than do 30 per cent over three years. It's short-term pain for long-term gain.'

Other core policy goals will take longer to achieve. Establishing a modern education system capable of meeting Qatar's growing needs has become a top priority for the government.

Late last year, the Planning Council in co-operation with the World Bank published a comprehensive report on the Qatar labour market, which highlighted a number of deficiencies. Among the findings of the Labour Market Strategy Report were the poor links between the education system and the labour market and the need for an aggressive drive to educate more Qataris.

In projects such as the flagship Education City, where leading foreign institutions set up campuses on the outskirts of Doha, the government is looking to nurture the talent desperately needed by a booming economy. It also hopes such initiatives will instil a high work ethic.

Fears are often voiced that soaring per capita income - it now stands at above $50,000 - and government largesse act as strong disincentives to a productive workforce. 'We may have the money, but if people don't work, they will not get it,' says Kamal. 'It is the education system, from the elementary levels upwards, that will convince people to work. We also have to make sure we meet people's ambitions and expectations. Part of our investment today is to provide suitable jobs for our graduates.'

Diversification is also high on the government agenda. In one sector, energy, diversification has achieved some impressive results over the past 15 years, with Doha adding liquefied natural gas (LNG), gas-to-liquids (