As we’ve said before, Jordan currently doesn’t need an
economic plan as much as it needs an economic executive program, which is what His
Majesty
King Abdullah directed the government to set up as soon as possible,
within clear objectives and set timelines.
اضافة اعلان
We must ask, why the Royal directive now in particular? And
why the expediting of the economic executive program?
The answer does not require much analysis and in-depth
views; economic recession has prevailed over the majority of economic
activities, both public and private, and governments have become hostages to
the variables of the pandemic, which flipped financial balances and constituted
a real nightmare for the country’s stability. This was due to the shutdown of
many sectors under the Defense Law, which imposed full and partial curfews, as
well as heavy losses suffered by the Treasury, which exceeded JD1 billion in
2020. That number accounted for the lion’s share of the doubling of the budget
deficit, which reached JD2.25 billion, twice as much as forecast.
This tied the government’s hands in regards to any economic
stimulation measures, and it was left to wait for epidemiological developments to
address events as they happened. This is in addition to feeble public economic
initiatives due to limited financial resources, and the absence of financial
surpluses for the government to support the various troubled sectors.
This explains why the government is moving without any clear
economic direction that would be able to address the post-pandemic challenges,
now that the pandemic is relatively in recession.
An economic executive program means that the government is
required to act immediately to resolve the issues from which economic sectors
are suffering due to the pandemic, and ensure their gradual recovery and return
to pre-pandemic levels at the bare minimum. After that, the government can move
towards stimulating economic activity and putting sectors back on track for the
economic growth required for creating new jobs that contribute to addressing
poverty and unemployment.
The Royal directive to the government to launch an economic
executive program means that the program is executive not diagnostic, as time
does not allow for pontification and resonating speeches to the media about the
crises and challenges facing the economy. We have many of those, on top of
enough plans and proposals to stimulate the economies of the entire region, let
alone the national economy, which is in dire need for quick action to stop the
bleeding in some key sectors.
However, the efficiency and effectiveness of the economic
executive program depends on the partnership between the government and the
private sector, which the King stressed in his directives to the government,
because, in principle, the private sector is the main engine for economic
growth. Therefore, there must be a mutual understanding of steps for practical
solutions that the government must complete through a comprehensive package of
measures, supported by set timeframes, be it in relation to legislation,
regulations, or even training and capacity building for administrative bodies that
deal with the private sector, for the purpose of enhancing the local business
environment.
In fact, the national economy does not have the luxury of
time; it is in dire need for quick economic surgical interventions to stop the
bleeding, protect troubled sectors from collapsing and vanishing, and enhance
promising opportunities that are still waiting for someone to bring them into
existence.
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Opinion & Analysis
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