Time for LED

Jordan faces stubborn challenges when it comes to local economic development (LED).

With the gap growing among governorates, the need for a strong and coherent implementation of reform in LED is ever present. 

Following are points raised in a detailed discussion at a new economic show called Malna, which is Internet based.

Urbanisation and concentration within three governorates (Amman, Irbid and Zarqa), where 71.4 per cent of the population resides, places tremendous pressure on the public services (education, health, roads, and water and sewage networks) systems within the urban areas.

Consequently, as well, differences in income among governorates are sometimes astounding: income in Amman can be 68 per cent higher than in Madaba, which lies 30 kilometres away

It is no wonder that 40.5 per cent of the labour force is in the Amman Governorate.

Poverty is much lower in Amman than in Ajloun, Balqa, Jerash and Aqaba, where poverty rates exceed 20 per cent, almost double the poverty rate of Amman.

Unemployment in Amman is around 10 per cent, but higher than 17 per cent in Tafileh.

The number of companies per 1,000 citizen is highest, of course, in Amman at 2.75, and lowest in Ajloun at 0.04. Ajloun has only six companies while Amman has 80 per cent of all Jordanian companies.

There is real need for decentralisation, whereby revenue and expenditure decisions are moved from the centre, Amman, to the governorates.

There is no escaping this if Jordan is to employ LED as a model for development.

Furthermore, there is the added benefit that decentralisation is a good first step towards democratisation, as people come to learn how to use the voting mechanism in the management of their own affairs.

At the same time, bureaucracy decreases with decentralisation.

Better decision making also emerges as economic decisions are better informed. Take, as an example of this last point, how so many investments were turned away from Ajloun because the decision maker thought Ajloun was all trees, when in fact only 17 per cent of its land is wooded areas.

Governorates need to become closer in terms of income, facility provision and competitiveness. There is no reason for continuing and growing disparities.

Needed is a designated long-term institutional champion and a perfected governance framework.

To restate the obvious, it is time for LED.

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