Jordan moves toward more interventionist economic governance
Jordan’s economy is under pressure as a result of changing global circumstances. In addition to internal economic pressure, remittances sent home by Jordanians working elsewhere such as in the once booming Gulf economies have also dropped considerably. Up until recently Jordan’s government was economically conservative advocating minimal involvement but king Abdullah’s patience ran short and he abruptly ended the conservative parliament’s life in mid-term.
In am lurch not dissimilar to the US, Jordan has moved to a government more philosophically amenable to more centrally controlling the economy. However, despite this move seen by many to be a positive step by many Jordanians, politics there is complex riddles with tribal loyalties and an ongoing concern how best to accommodate the powerful Palestinian lobby.
The Parliamentary body is seen as a stronghold of tribal support under a new electoral law that reduced the representation of the largely Palestinian-dominated cities, which are Islamist strongholds, in favor of rural and Bedouin areas. Many Jordanians are increasingly aware of the political empowerment of their countrymen of Palestinian origin, a majority of the country’s six million population, for fear they will settle permanently in the kingdom with no prospect of a return to the Palestinian territories. Whether dissatisfaction with economic conditions and a desire for a change of direction will combat these political fears is yet to be determined.
Jordan’s King Abdullah, a close ally of the United States, swore in a government on Monday headed by the scion of a powerful political family and charged it with speeding reforms before parliamentary elections next year.
Samir Rifai, a 43-year-old former palace aide-turned businessman and son of elder statesman Zaid al-Rifai, was asked by the monarch to take over from Nader Dahabi, who quit having led a much-criticized government for two years.
The king has told Rifai to improve governance and push for genuine political reforms ahead of multi-party polls scheduled at the end of 2010, officials said.
The cabinet line-up was dominated by conservative politicians, tribal loyalists and technocrats who held sway before the outgoing government of Western-leaning pro-reformists.
Mohammad Abu Hamour became finance in a new 28-member cabinet in which the posts of foreign and interior ministers remain unchanged, the state news agency Petra said.
Abu Hamour, who was finance minister in a previous administration, replaced Bassem al-Salem, a liberal businessman who had pushed an austerity budget to curb runaway government spending that sent public debt to record levels.
Rajai al-Muasher is a prominent businessman and vocal critic of the liberal reformists and supporter of a wider role for the state in the economy. He becomes deputy prime minister and is expected to have a big say in shaping reforms, officials added.
