The Head of State’s Economic Compass

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The Speech from the Throne, delivered by His Majesty King Abdullah II last Monday at the opening of the third ordinary session of the 20th Parliament, provides a clear foundation for an economic approach that should guide the work of governments.اضافة اعلان

Under this approach, development is measured by the improvement’s citizens experience in their living standards, opportunities, education, healthcare and their children’s future. This understanding places a direct responsibility on public institutions to translate economic objectives into tangible social outcomes and to enable citizens to discuss policies and assess their effects from this perspective.

This approach regards people as the ultimate purpose of economic activity. Growth, investment, increased production and stronger public finances are essential to expanding the capacities of the state and society. Their full value is realised when they improve people’s lives. Assessing government performance therefore requires examining the gap between improvements in macroeconomic indicators and improvements in the circumstances of individuals and households and understanding why the benefits of progress reach some groups and regions faster than others.

This gap is shaped by policies themselves, the sectors that grow, the quality of the jobs they create, wage levels, the fairness of the tax system, and the effectiveness of public services and social protection. Ensuring that the benefits of growth reach society requires deliberate policy choices and institutions capable of implementing them. Fairness in the distribution of opportunities and benefits thus becomes part of economic policy design from the outset, and a criterion for judging its success.

Placing citizens’ interests at the heart of decision-making requires moving beyond treating them as a “statistical average”. A decision may appear to impose only a modest cost when measured against average income yet consume a substantial share of the income of low-wage households.

On this basis, impact assessment should begin before a decision is taken. The government should identify the problem it seeks to address, the groups concerned, the expected outcomes, the costs and the alternatives, then publish indicators that can be reviewed after implementation. In the labour market, for example, these indicators should include job stability, wages and workers’ social protection coverage. For public services, they should include quality, the cost of access and waiting times. Measurement would then become a means of correcting and improving policies.

This royal approach also gives more precise meaning to the call to accelerate economic modernisation projects. Speed is needed to reduce the costs of delay and respond to pressing needs. It must be accompanied by clear public benefits, efficient spending and the project’s capacity to support local production and employment.

The same spirit applies to the economic and social legislation currently being amended, including the Social Security Law, the Labour Law, the Societies Law and others. Any legislation that redistributes rights, obligations or opportunities deserves to be debated on the basis of its expected effects on people, their lives and institutions.

Limited resources may impose difficult trade-offs, and sustainability may require decisions that do not deliver immediate gains for everyone. This underscores the importance of disclosing costs, distributing them fairly and protecting those least able to bear them. Trust grows when citizens understand the reasons behind a decision, see that alternatives have been examined, and know that the sacrifices required are matched by clear accountability for results.

The economic philosophy at the heart of the royal address is therefore closely linked to its affirmation of the right to debate public affairs. Freedom to discuss economic and social choices is essential to improving them and revealing effects that official assessments may overlook. The public space must allow room for dissent, criticism and alternative proposals, without unjustified restrictions or sensitivities that obstruct dialogue.

The head of state’s economic compass sets a clear test for the government, what has changed in people’s lives as a result of its decisions? A convincing answer requires measurable impact and citizens who can freely debate those decisions and help correct their course.