Heir Jordan
One State’s Story of Economic Transformation
by King Abdullah II
From Perspectives on the United States, Vol. 24 (4) - Winter 2003
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While liberalizing and improving market conditions were leading to macroeconomic successes, they were contributing little to social development, which is ultimately critical for sustainable growth. Acknowledging this fact, the government launched a second reform program in the late 1990s that focuses on areas that directly affect social development, namely public sector reform, improvements in the educational system, an open market policy, legislative and judicial overhauls, and a modern legal infrastructure. We have also adopted new monetary and fiscal policies that will help to create a dynamic and responsive society equipped with the requisite tools for competing in the expanding global economy.

Fueling this reform program are information and communications technologies (ICT), which have become a source of wealth in their own right. Recognizing that knowledge and information can now be used as tools to drive significant economic and social reforms, we immediately set out to spur the development of industries associated with the transmission, storage, and retrieval of information. These industries have proven that they can become the agents of significant change in countries able to harness their potential. To that end, our nation established the REACH Initiative (Regulatory Framework, Enabling Environment (Infrastructure), Advancement Programs, Capital and Finance, Human Resource Development). Launched in 1999, REACH became a plan of action to bolster Jordan’s nascent information technology sector and maximize its ability to compete in local, regional, and global markets. In implementing our strategy, however, ICT needed to go beyond business opportunities. We recognized it as a tool to enable Jordan to move ahead in developing our businesses, government, and, most importantly, our citizens.

Going Online

For public sector reform, we introduced an e-government program in January 2001, reorganizing the way that we, as a government, do business. For Jordan, e-government means a new definition of government—that of a first-rate service provider for its citizens. Today, the program is creating the basic infrastructure and standards necessary to automate services and is bringing those services gradually onto an e-government portal. Connecting government agencies over a secure network is the first step. This network is being implemented in conjunction with the retraining of government employees to ensure that they effectively use these technologies. Additionally, the program has hired a world-class systems integrator to assist in the transition and is training e-government project managers who will lead change in the heart of public institutions.

Citizen involvement has not been overlooked, and we are committed to an all-inclusive approach toward participating in the digital age. As a case in point, an Information Technology Community Center initiative has been established to offer ICT access, training, and support to all Jordanian citizens.

With almost one-third of Jordanian citizens in learning institutions of some sort, the educational reform component of our program is aimed at leveraging knowledge and allowing the mind to reach its full potential. We needed a complete revolution in our educational system to ensure that what takes place in the classroom, on campus, and in society is a process of learning and creative thinking and not simply one of rote instruction. Education, in all its forms and at all levels, must promote the importance of entrepreneurship and competition through a merit-based rewards system. It must also be dynamic enough to adapt to a rapidly changing world, where what is considered new today could become obsolete tomorrow. To facilitate these requirements, we are integrating ICT into the educational process, and curricula are being updated to address the needs of today’s economy. Teachers are being trained in the necessary ICT skills to become facilitators in the acquisition of knowledge instead of mere instructors. To support this reform, a “Connecting Jordanians” strategy has set a target of connecting all of our public learning institutions to a broadband network, bringing global resources into classrooms and allowing our students to interact with the world.

As part of our strategy to build global partnerships and institutional relationships and to allow free trade and international engagement, we have secured an Association Agreement with the European Union, gained membership in the World Trade Organization in record time in 1999, and established free trade areas with the European, Middle Eastern, and US markets. In particular, the US Free Trade Agreement, signed on October 24, 2000, is intended to shift Jordan’s economy from one of dependence on foreign aid to one of self-reliance. By opening the Jordanian service market to US companies in key sectors, including telecommunications, financial services, energy distribution, tourism, health, and transportation, the Jordanian economy stands to gain expertise and technology. At the same time, legislative, regulatory, judicial, and other reform efforts have been undertaken to create the necessary environment to allow our businesses and citizens to utilize these international agreements and effectively compete in the new knowledge-based global economy.

Any ambitious reform package challenges traditional budgetary constraints. Jordan was not able to tackle all the areas that needed to be addressed while remaining within the government’s budget. As a result, we risked pursuing a potentially insufficient reform program. To combat this danger, we adopted a creative and ambitious program named the Social and Economic Transformation Program (SETP) in November 2001. The SETP is funded by external donor grants and by partial utilization of privatization proceeds, allowing us to protect the integrity of our macroeconomic stability while implementing our aggressive mandate. It calls for the adoption of a performance-based growth budget, supports and further strengthens the role of the private sector, enacts a large set of critical enablers that target more effective policies, laws, and regulations, and enhances institutional capacity building. The program itself is another indication of our commitment to creativity and persistence in overcoming all obstacles that we will encounter as we continue to move forward.

The New Economy

I am proud to say that the vision we have set is no longer merely an aspiration: it is now becoming a reality. We have achieved great progress in our continuing mission to become a country that is more adept at meeting the challenging demands of the 21st century. Within our dedicated efforts lies a cultural revolution that my fellow citizens have strongly embraced. We realize that only through a modern and integrated outlook will Jordan place itself on sound footing on the global map. Providing Jordanians with the necessary skills to compete and contribute will empower us to become a self-sufficient nation that is capable of determining its own destiny and attaining its goal of becoming an active and meaningful participant in the global economy.

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