Directive and plan

The King’s letter to the government, concerning the economy blueprint, consists of four main components and albeit not detailed, as such letters of directive should be, is comprehensive.

It embodies a consistent vision that His Majesty has espoused and presented repeatedly over the years and specifies the guidelines to follow in order to ensure proper implementation.

The four components are: a) enhancing growth through competitiveness, which entails maintaining the gains achieved thus far, ensuring that change will be effected within a framework of stability, and conducting competitiveness enhancing measures, such as improving the business environment, further developing financial policies, encouraging innovation, sector development, improving investment promotion and supporting SMEs; b) improving the efficiency and effectiveness of the social safety net through better targeting and concentration; c) bettering the quality of the public sector, focusing on education, training and health, and supporting the decentralisation drive through, among other things, the creation of development programmes; d) focusing, through a comprehensive grid, on augmenting national security in terms of food, water and energy, and implementing major strategic projects.

The government’s response, a plan of action, should be formulated through discussion with the stakeholders, implementable and binding work plans, together with schedules, benchmarks and responsible parties. 

Realisation of the plan should be accountable and transparent. This is not to be “another plan” that is shelved, but a timed programme with discernible actions and results.

I believe that the timing of the letter is perfect; it comes days after the IMF approved another tranche of SBA and gave its sanction of the measures already taken.

And while the IMF-agreed measures focus on improving the fiscal position of the government, they offer little hope that the economy will recover from the 2.8 per cent growth rate of last year.

Hence, the true directive of the King’s letter is a timely message for the government not to forget the economy.

“Austerity” as per the IMF does matter and the country is committed to it, but the economy, and the welfare and livelihoods of Jordanians matter most.

In other words, if implemented, we should see a return to that optimistic dialogue, the one that departs from the pessimism of busying everyone with how to settle the growing debt of the government.

The King’s directive should be the start of something good, and if done well, it should bring great results.

Virtuous cycles should emerge to enhance competitiveness, improve welfare, decrease poverty and unemployment, and reduce government fiscal deficit and debt, both in absolute and relative terms, and buttress stability.

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