There are several positive signs in these past few days, to give hope to Jordanians that things may be better soon enough, and none of these signs is to be taken lightly.
First, the International Monetary Fund (IMF) announced that the second review of Jordan’s reforms programme was approved.
The IMF’s statement carried a new tone, not to mention a lot of weight, following the protests that spread throughout the Kingdom for days just last week.
The Fund has finally taken a moment to ponder at the programme’s social implications on the middle-class and fixed income segments They explicitly acknowledged them as worrying.
Therefore, the IMF underlined, balance must be realised between the benefits of these reforms, the costs of it and the distribution across Jordan’s economic sectors. The IMF even called for focusing on the higher income segments of society, while protecting fixed-income segments.
Notably, this redefines our relationship with the Fund. Especially since they welcomed the King’s call to launch a national dialogue on the tax system, which was described by the IMF as a positive step in the right direction.
The Fund’s support will give Dr Omar Razzaz’s government the time and space needed to revisit the sensitive issue of taxation.
In fact, Jordanians have been calling for tax reforms for years, but the government has been deaf to the people’s demands, in this regard at least. And when they finally decided to do something about it, they did it wrong.
Given the sensitivity of this particular phase, it is noteworthy to underline the achievements of the Central Bank in protecting the currency. Preserving the value of the Jordanian Dinar today is of the utmost importance, as it conveys the message of reassurance and confidence in the wisdom of our fiscal and monetary policymaking authorities and the stability of our economy.
The IMF also commended the Central Bank for their good work, which has been integral to the maintenance of foreign and hard currency reserves.
Overall, the Fund’s statement, their change of tone, is greatly beneficial.
However, we are not out of the woods yet, I say.
Extensive work, internally, is required to put forward national alternatives to the IMF’s disastrous suggestions. Be it due to the shortage of precise information or otherwise, the IMF has little appreciation of the domestic situation. Either way, it all led to the unrest we saw a few days ago.
The second positive sign is the interest allied and neighbouring states showed in Jordan’s situation. This reaffirms Jordan’s important geopolitical position.
It reiterates a fact we have always known. One that should never have slipped anyone’s mind; that Jordan’s stability is integral to the entire region.
Late or not, we as Jordanians appreciate our friends’ rallying to support our steadfast stand against all the massive challenges facing us.
King Salman bin Abdul Aziz of Saudi Arabia has called for a quartet meeting with Arab allies and friends of Jordan to discuss ways of supporting the Kingdom through its suffocating economic crisis.
Our Arab allies’ leap to our support, at this point, is another comforting sign for Jordanians.
All of the above gives momentum to Razzaz’s government.
But make no mistake, this is as much a challenges as it is an opportunity.
Jordan must invest now in the Fund’s flexibility and the attention of our friends to enhance the domestic situation and build on what we have. Time is of the essence.
The government must make calculated, steady and wide strides towards sustainable development to alleviate the pressures of the current economic reality.
Meanwhile, the government must attentively work towards self-reliance.
Today, Jordan stands to receive an exceptional amount of regional and international support, not to mention appreciation of its leadership. But who’s to say it wont slip the world’s mind again at any point?
Now is the time to make our solid steps forward.
The government, theoretically, has all the space and support it needs to do the job right this time.
Jordan has another chance; a golden opportunity, and we should not let go to waste, again.
This article is an edited translation of the Arabic version, published by AlGhad.
