Jordan- The country's serious crisis


(MENAFN- Jordan Times) The government of Fayez Tarawneh is facing a critical dilemma. To deal with a grave economic crisis, which existed long before it has taken up office, it has to continue to apply a series of stringent economic measures intended to address the rising budget deficit. That simply means higher energy prices, and that implies almost everything else. The problem is that Jordanians are not prepared to accept such measures. It is not because Jordanians are irrational or unaware of the economic difficulty the country is facing. In fact, the Jordanian society is rational enough; it understands the seriousness of the situation and has proved sufficient willingness to adapt to reasonable austerity measures. The deeper issue is that Jordanians have lost confidence in their successive governments. They do not believe what the government says; they do not trust its figures about energy cost and the size of the government energy subsidy. Many Jordanians think that the government exaggerates to justify repeated price hikes. This does not apply to this current government alone. It has been the case with its many predecessors. Yet, instead of addressing the issue of confidence and trust, every new government has resorted to decisions that gradually led to widening the gap of suspicion by repeating the errors rather than first addressing the basic issue of trust. There has been steady erosion in the integrity of the state, as well as in its credibility in the eyes of its people. Under such circumstances, it is going to be difficult for this government to function. It will not be able to pass the necessary measures objectively and urgently needed to address the deepening financial and economic difficulties. At the same time, the country will not be able to manage without such measures. To be fair, the Tarawneh government has managed to enact drastic measures to either check the economic deterioration, at least, or initiate long-term remedial measures, at best. But rather than staying the course of dealing with the pressing economic priorities, it unnecessarily engaged in other matters that accumulated the damage, broadened the gap of mistrust and eventually led to the current crisis. That is one reason why the latest decision to once more raise the prices of gasoline and diesel fuel was confronted by a near popular revolt. His Majesty King Abdullah was absolutely right to overrule the government and stop the measure. He aborted what could have been much riskier. The economic situation is much like that of a patient who needs a life-saving surgery, but his frail health may not allow the badly needed surgery. Instead of enhancing the patient's condition to prepare him for the medical necessity, the government thoughtlessly rushed the country into the operating room. The King's intervention came just in time to rescue Jordan from the surgeon's lethal lancet. In less than four months in office, the current government managed to get away with a number of unpopular decisions. It raised the price of gasoline twice, after raising the electricity tariff quite substantially at the very beginning of its mandate. The finance minister announced a five-year correction plan which, the prime minister once said, would involve regular price hikes of energy derivatives and other related services. That, the government rightly said, is needed to just partially reduce the deficit, and it therefore should be understandable. What went wrong then this time? The sudden decision to raise the prices of gasoline and diesel came at a very bad time; therefore, the straw that broke the camel's back. It came just when people were fed up with a series of other unnecessary government actions that only aggravated an already strained relationship with large sectors of the society. On top of the raging controversy over the Elections Law and the speculation on whether there will be elections soon, the government added oil to the fire by introducing the draft media law, which is generally viewed as an attempt to restrict freedom of expression, particularly with respect to electronic media tools. The government also engaged in a series of undue moves changing executives in some ministries and other financial institutions, but particularly in the Social Security Corporation and its Investment Unit. Coming at such critical time, these sudden changes stunned observers as reflections of government performance that has either lost its compass or is engaged in shady favouritism. Coming from a prime minister who has hardly been considered a reformist or a corruption-combatting leader, such top office reshuffles brought to light people's deeper frustration and trepidation. Most enunciated is the Jordanian grievance that the economic crisis is, after all, the result of either state mismanagement or corruption, or both. Many Jordanians ask why poor innocent citizens should pay for official incompetence or corrupt practices. So far, no adequate official action has been taken to convince the people that the various governments' claims to track down corruption and recover looted national assets have been taken. Until such a prerequisite is met, no government will be able to successfully address the economic crisis and bring the country to the shores of economic safety. The current government may or may not stay much longer in office, but that is not the point. It has run out of options. It had decreed a raise of the electricity tariff, but retreated under popular pressure. Hesitant action normally blunts government's effectiveness and power. By failing to implement its economic correction plan rightfully, by messing it up with other unnecessary rulings and by turning a blind eye to pressing people's calls and remonstrations, the government is facing a serious dilemma. It will not be able under the circumstances to implement its economic programme that essentially requires regular price rises if the budget deficit and the debt problem are to be drastically addressed. Neither will it be able to run the country with the economic crisis worsening by the day. Change of personalities has not proved to be the way to deal with the country's problems. What is needed is a national strategy based on consensus that should also determine the type of competent leaders who can steer the country out of uncertainty. That means an urgent national convention of all the country's components under the patronage and the guidance of the King.


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