Jordanians must be patient to get the fruits of reforms as benefits of change take time

Jordan Times by Omar Obeidat

May 29/5/2012 - DEAD SEA –– Jordan on Monday urged the European Bank for Reconstruction and Development (EBRD) to support the Kingdom’s economic priorities through financial and technical assistance.

In a speech delivered on behalf of Prime Minister Fayez Tarawneh by Planning and International Cooperation Minister Jafar Hassan at the Transition to Transition (T2T) initiative, the premier called on EBRD to play a tangible role in boosting investments in competitive sectors.

He said Jordan needs to double the current gross domestic product growth to over 6 per cent in order to reduce unemployment and create job opportunities to thousands of university graduates.

Among other priorities, the premier added that Jordan needs to achieve inclusive and sustainable economic growth to protect marginalised and underprivileged segments of the society.

Tarawneh indicated that Jordan is working to implement strategic water, energy and transportation projects of regional dimension, noting that the Kingdom needs to generate at least 200 megawatt of renewable energy every year in order to achieve the 2020 national energy strategy.

The T2T initiative is a framework within which the EBRD is facilitating and developing a peer to peer exchange of transition and reform experience between the bank’s current countries of operations, central and eastern Europe (CEE), and countries of the southern and eastern Mediterranean region.

At the meetings, held yesterday on the eastern shores of the Dead Sea, dozens of public and private sector experts from Jordan had the opportunity to hear from their peers in these countries that have successfully implemented transition.

According to EBRD, the meetings aim at understanding short-and medium-term priorities for Jordan, particularly the private sector.

At a plenary session on understanding the economic challenges facing Jordan, through transition and reform insights from central and eastern Europe, Ivan Miklos, former deputy prime minister and minister of finance of Slovak Republic, said his country came through difficult years during the transition period after its independence in 1993 but stressed that the political will to implement reforms worked out in attracting investments.

Due to economic and political reforms, Miklos said Slovakia’s economic growth picked up after 2000 and the credit rating of the former communist country improved, enabling the country to be one of the top car manufacturers in the world.

Jan Krzysztof Bielecki, former prime minister of Poland, said geography has served his country well during the transition period as Poland was well-fitted to the German economy.

Asked how Poland was able to escape the recession that hit Europe, Bielecki credited labour costs for keeping Poland’s economy competitive and an attractive destination for investors.

“Incomes and wages of many emerging European countries, such as Greece, have grown sharply in the past years which hit their competitiveness,” he explained.

Meglena Kuneva, former European commissioner for consumer protection and former minister of European affairs of Bulgaria, said Jordanians must be patient to get the fruits of reforms as benefits of change take time.

She urged decision makers in Jordan to consult the people in drafting policies that aim to empower them and improve their lives.

Indicating that political and economic reforms in Jordan are underway, Hassan said the government seeks to gain the confidence of the people through political and economic reform.

“This goal, if achieved, will encourage local and foreign investors to carry out development projects in the Kingdom,” he said.

The minister added that in mid 1990s income per capita in Jordan was similar to those in Turkey, Croatia and Slovakia, but due to increasing productivity and innovation in these countries, incomes of people more than doubled those of Jordanians in the past 16 years.

According to EBRD, the benefits of moving to a more open and accountable government and economy are attractive to many stakeholders of society, but they may only materialise in the medium and longer term. During the period of transition, uncertainty can cause slowdown in investment, and political and economic challenges can emerge in the immediate term, the bank suggests.

Session in the T2T meeting include topics about promoting growth and employment through development of small and medium enterprises, modernising the agribusiness value chain and investing in food security, preparing for a sustainable energy future and financing private enterprise to support competitiveness, innovation and inclusive employment among others.