Jordan Times
Wednesday, September 8, 2004
Symposium examines IMF-guided
Economic Adjustment Programme
By Mahmoud Al Abed
AMMAN — Now that facts and figures are available, economists and experts agreed
on Tuesday that the 15-year-old Economic Adjustment Programme, completed last
June, can be evaluated objectively rather than on the basis of personal
impressions and political prejudice.
At a symposium to assess the outcome of the International Monetary Fund (IMF)-guided
programme that was triggered by the 1988-1989 economic crisis, economic expert
Tayseer Abdul Jaber said Jordan took the right decision when it sought help from
international organisations.
On the positive side, Abdul Jaber indicated that the Kingdom was able to lower
its external debt and achieve economic stability in terms of maintaining a
stable dinar and boosting the foreign currency reserves besides keeping
inflation at a low level.
He also highlighted the strong balance of payments and the adequate interest
rate level that suits investments as well as the major strides that were
achieved in privatisation, economic openness and liberalisation.
Abdul Jaber underlined the benefits of relying on market forces, giving a wider
role for the private sector and of changing the taxation system and valued
programmes such as the Socio-Economic Transformation Plan and others for
alleviating poverty, enhancing vocational training and organising non-Jordanian
labour.
However, he pointed out some negative consequences of the Economic Adjustment
Programme, especially the high unemployment and poverty rates at a time when the
growth in the workforce is high at five per cent.
The expert noted that economic growth rates were still below six per cent
annually and that the indetedness and the budget deficit remain high.
Nayef Al Fayez, deputy speaker of the Lower House, attributed the public
controversy over the programme to the fact that it was associated with IMF and
World Bank recommendations and dictations.
“Some believe that the programme came in favour of the rich and the corporate
sector, but such opinions are not built on solid facts but rather on personal
impressions,” the MP told the forum which was organised by the Jordan
Development Centre (JDC).
Yet, Fayez spoke about “side effects” that strained and overburdened the
public's living expenses.
He admitted that the sufferings caused by the policies and decisions made in
line with the programme's guidelines were inevitable, but “what counts is the
final outcome and the total cure from the ailment.”
Adel Qudah, president of the Executive Privatisation Commission, presented a
paper on Jordan's experience in selling government stake in economic projects
describing the divestment as “ a sucess story.”
Director general of the Lands and Survey Department also contributed to the
seminar with a paper on the growth of real estate investment in Jordan during
the adjustment era.
The expanding role of the private sector in economic activity was the key issue
addressed by Haidar Murad, president of the Jordan Federation of Chambers of
Commerce, in the paper he discussed at the seminar.
On Wednesday, Finance Minister Mohammad Abu Hammour will look retrospectively at
the adjustment programmes, while Jordan Investment Board Director General Reem
Badran will discuss investment-related laws.
Participants are also due to tackle the growth at the Amman Stock Exchange,
Jordan's accession to the WTO, the free trade agreements, and the Qualifying
Industrial Zone's experiment, among other issues.
JDC is a private nonprofit institution that seeks to enhance the awareness and
positive participation of the civil society, including women in the discussion
and formulation of economic policies and other issues of public concern.