Brunei's welfare state faces a ticking clock as its oil reserves dwindle.

This video examines Brunei, a nation where the government funds nearly all public services, from defense to housing. It explores the sustainability of this welfare model as the country struggles to diversify its economy before its oil wealth runs out.

Brunei operates as a welfare state, providing citizens with heavily subsidized housing, energy, schools, and national defense. This system is currently supported by the nation's oil reserves.

The video highlights the economic challenge facing Brunei: its oil resources are depleting, yet the country has not yet successfully diversified its export industry to replace this revenue. This creates a long-term risk for the nation's ability to maintain its current level of state-funded services.

Source: This Tiny Country Built the Laziest Economy in the World