Economists voice hope for better future as Kingdom marks first centennial

AMMAN — Jordan has been a symbol of stability in the changing region over the past 100 years, demonstrating capabilities in overcoming economic, political and social challenges, according to economists.

The gross domestic product (GDP) is estimated at tens of millions of dinars, facilities increased as schools, universities, hospitals rose from very simple numbers to much larger ones, economist Husam Ayesh told The Jordan Times on Sunday over the phone. 

“The Kingdom changed overtime, undergoing a building and growth process that faced many challenges, halts and regressions that Jordan has been able to overcome, marching on regardless of what happens, creating people that are able to stand up and move towards the future,” Ayesh said.

The next 100 years should focus on policies of construction, labour, economy, society, reviewing changes every three to five years in those policies, he added.

“The new political, economic and social system should be more aware about people’s needs at present but also the requirements of the future, and this requires change in policies, laws and regulations towards more development, flexibility, governance, transparency and integrity,” Ayesh noted.

Moreover, priority should be given to rid the Kingdom of the debt that overshadows GDP, the budget deficiencies and citizens’ difficult living conditions, the economist said. 

Highlighting some of the most significant economic achievements of the Kingdom over the past 100 years, Adel Bino, an economist and professor of economics at the University of Jordan, said that the Kingdom has created public and private institutions that enabled building a resilient economy and created a solid monitory system that aimed to stabilise the lack of economic dynamics like unemployment, education and foreign trade.

“We invested heavily in building infrastructure and developing human capital in the health and education sectors to the extent that they have become sources of foreign investments and remittances, boosting local employment,” Bino said.

He added that the Kingdom created a “robust financial and banking systems” that enabled movement of capital inside the country, facilitated exports and imports, and financed the development of new economic sectors, forming also long-lasting bilateral and multi-lateral agreements, such as with Europe and the US. 

“The monitory system, especially in the sixties, has picked up very well and it did in fact stabilise the economy, and the investments in the infrastructure, particularly in the health and education sector, made them main sources of cash flow to the country, whether in the form of consumption or capital,” Bino said.

“We have created the financial, banking and capital market systems that enabled movement from those who supply to those who demand, financing projects, facilitate trade processes, and also formed bilateral and multi-lateral agreements, becoming part of major alliances not only in the region but in the global arena,” the economist said.

As for what is needed for the next centennial, Bino said that “we need to recognise the recent transformations in doing business that are led by unprecedented and rapid technological changes which will leave long lasting consequences on social and economic levels”.

“It has become more important than ever that we build our own economic model that can enhance our competitiveness on a global level,” he said.

The government has to take the lead by improving the practices of public finance, including the modification of relevant economic regulations in a way that can enhance individual and corporate well-being,” Bino noted.

Economist Wajdi Makhamreh said that Jordan has been through and struggled with many challenges, including political tensions, wars, refugee crises, and the “Arab Spring” among others. 

He said the Kingdom should have new strategies in dealing with the various economic affairs to remove complications, debt and budget deficiencies in the future.