Jordan Times
Wednesday, June 9, 2004
Jordan marks today 5th anniversary of King's
accession to Throne
The Monarch began reform process as an essential step to meet globalisation
challenges while sustaining economic growth and improving living standards
AMMAN (JT) — Jordan today marks the 5th anniversary of His Majesty King
Abdullah's accession to the Throne. Although the King inherited a stable and
self-confident Kingdom, he also inherited a country surrounded by regional
instability with limited natural resources, slow economic growth, high
unemployment and an external debt constituting around 111 per cent of GDP.
Therefore, economic reform was accorded top priority. King Abdullah immediately
committed himself to pursue the construction of a modern Jordan and began the
reform process as an essential step in order to meet the challenges of
globalisation while sustaining economic growth and improving falling living
standards.
Work began on all fronts in order to improve and strengthen the national economy
and overcome impediments obstructing the development process. Hard decisions had
to be made. The implementation of the International Monetary Fund's tough
fiscal, budgetary and pension reforms often had a negative effect on state
employees. Economic reforms also took the form of pursuing productive
partnerships between private and public sectors.
The Kingdom became a member of the World Trade Organisation and has signed free
trade agreements with Arab countries and the US, in addition to an association
agreement with the EU. Liberal investment legislation has also been introduced,
as a means to attract foreign direct investment and create badly needed jobs.
The results have been visible on the macroeconomic level with the Kingdom
achieving above average regional growth rates for the past two consecutive
years.
Despite the negative effect of the war on Iraq and the continuing Palestinian
Intifada, Jordan's economy has proved remarkably resilient. Economic growth for
2003, although below the 6 per cent required in order to move away from reliance
on foreign aid, was still above the 2.8 per cent population growth rate. Foreign
reserves are at record levels and budget deficit is firmly under control.
Inflation remains steady at 1.8 per cent. Economic growth is expected to reach
5.5 per cent in 2004.
The King has pushed ahead with the Socio-Economic Transformation Plan aimed at
the alleviation of poverty and unemployment through vocational training and
recruitment schemes and increasing aid to impoverished members of society.
Although progress has been made, considerable challenges remain.
The official unemployment rate stands at 13.6 per cent and 30 per cent of the
population remain below the poverty line. This is particularly significant given
that 60 per cent of Jordan's population are under the age of 30.
The first general elections in King Abdullah's reign took place in June 2003.
For the first time the King put political reforms at the top of the list of
government priorities. In the speech from the Throne, the King highlighted
“Jordan First” as a guideline to follow, and called for social integration,
unleashing the people's potential, and spreading the culture of democracy.
Some analysts believe that focusing on political development at a certain point
was always the next logical step in the King's reform agenda. The King has
specifically asked for an advanced political parties law and a democratic
elections law on the basis of which the 2007 elections would be held.
This commitment signals an awareness that economic reforms must go hand-in- hand
with political reforms, both being aimed at long term stability. The King's
vision for political development focuses on a more active role for political
parties in public life. The King has declared that the 31 political parties be
streamlined into three major groups with the prime minister eventually being
elected either by the Parliament or directly by the people.
The King has continued the legacy of the late King Hussein as a peacemaker being
firmly placed in the Arab moderate camp, and launched a diplomatic offensive
aimed at reviving the Middle East peace process — resulting in the Aqaba
roadmap. The King has also put Jordan firmly on the world map by hosting two
World Economic Forums where politicians and business and media leaders have been
able to meet in order to engage in constructive dialogue to find solutions to
the challenges facing Jordan and the wider region.
Despite the challenges, the King remains determined to bring his vision to
reality and has achieved substantial progress. The King continually stresses
that he shares the goals and aspirations of his people and his vision is that of
a prosperous country enjoying security and democracy and respect for human
rights, a Jordan that will act as a model of a democratic Arab Muslim state.
In a special supplement of The Jordan Times to mark the second World Economic
Forum, the King articulated his vision for the future stating that, “It is time
for a regional renaissance based on the rights and dignity of every human being,
a time when achievement, innovation, artistic expression, and the overall
contribution to the betterment and advancement of humanity are the primary
challenges facing the people in the Middle East, and where cooperation,
innovation, productivity and freedom are the tools by which they overcome them.”