Jordan’s Economic Modernization Vision 2033 was launched last Monday as a
roadmap to unleash the Kingdom’s economic potential and build a diversified,
resilient economy capable of delivering long-term sustainable growth in the
upcoming years. The vision can lead to a strategic program for local supply
chains, creating valuable job opportunities in the private sector. The strategy’s
ultimate goal is to leverage national GDP growth, enhance research and
development and advanced technology spending, increase the private sector’s
contribution to national GDP, expand the middle class, and improve living
conditions.
اضافة اعلان
The global economy is evolving, and consumer
appetites and stakeholder expectations are shifting. Amidst this uncertainty,
geopolitical tensions persist. Only by building a vibrant, high-tech, and
high-skilled domestic economy will Jordan be able to fully ensure its economic
security for decades to come. While progress has undoubtedly been made, there
is still work to be done to move the country away from its historical
dependence on international imports of goods and services.
Maximizing in-country value (ICV) is an emergent and
promising way to create sustainable and local values that remain critical to
the long-term development of Jordan’s economy and national security. ICV is an
economic localization strategy that seeks to foster and retain economic
activity and investment within the domestic economy, thereby minimizing
expenditure on foreign goods and services. ICV prompts Jordanian companies to
hire, buy, and invest locally in simple terms. This view aims to develop a
holistic definition for ICV beyond the traditional focus on local procurement
and to contract to capture the value generated by the economic sectors
entirely.
ICV is a crucial catalyst for Jordan’s economic
self-development that can bring many commercial, technological, and human
capital benefits. Principally, ICV helps drive economic growth and
diversification by boosting demand for local services and products. This helps
create a culture of innovation and entrepreneurship within the national economy
and aligns with the environmental, social, and governance strategic framework
as we aim for sector-leading local delivery.
Jordan needs to invest in local talent to build a
globally competitive and cultivated workforce, which will allow the Kingdom to
develop local supply chains that support small and medium-sized enterprises to
flourish, upskill, and train local workforces. Therefore, implementing national
programs that leave a positive and lasting impact beyond the assets would
create a win-win, more systematic mechanism that puts everyone on an equal
footing and increases competition to drive growth.
ICV is a crucial catalyst for Jordan's economic self-development that can bring many commercial, technological, and human capital benefits. Principally, ICV helps drive economic growth and diversification by boosting demand for local services and products.
These benefits would also be felt regionally within
Jordan, helping spread economic activity in areas outside existing commercial
centers such as Amman. The cascading effects of this in-country economic
activity can help enhance productivity, skills, and training throughout the
economy and its workforce, both geographically and in terms of sectoral
expertise. Indeed, Jordan’s domestic industries will continue to blossom and
thrive under the effects of ICV approaches.
As international capital increasingly seeks to enter
the Jordanian market, the Kingdom can put agreements with international
entities around technology transfer and knowledge sharing that embeds global
expertise into the Jordanian economy, heightening domestic capabilities. A
virtuous cycle would then ensue, fueling sustainable economic growth and human
capital development towards Jordan’s primary objective: a mature and
technologically advanced knowledge economy.
The economic road ahead is clear for Jordan.
Prioritizing and enhancing in-country value will have a galvanizing effect on
Jordanian economic and social development for many years to come. ICV
represents Jordan’s roadmap for growth, including the companies in commercial
decision-making also generated financial buy-in, making it more likely that the
private sector would implement ICV in a meaningful way.
Strong government leadership is critical to ensure
that ICV remains a priority, and building on the momentum by developing an ICV
governance model that finds a role for both government and the private sector
and ensures that promoting ICV would not hinder sustainable investment in the
long run.
The
writer is a board member of a Jordanian public-sector government investments
management company, and he is a regular commentator on regional energy and
industrial matters. He holds an MBA from the University of Aberdeen, UK and a
BSc in Mechanical Engineering.
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