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Ammon News - By Yusuf Mansur

The economy is not doing so well. This is the result of a seemingly careless attitude towards growth and development of the incumbent economic management, combined with the fear to take decisions, which is presently apparent and which gives a negative outlook of the economy.

Furthermore, the economic team seems to be acting as a non-team. The consequences should be worrisome.

Major economic decisions have been swinging back and forth, and there is fear and paranoia in the public sector. Instead of continuing the work of previous Cabinets, important projects such as the BRT (Bus Rapid Transport) was first canned, days later placed under scrutiny, and then went into hiatus or limbo. Now we don’t know if it is coming or going.

The economic dialogue that was started by a committee is obviously impotent; suggestions that emerge from tired debates are low in quality and scope, and, most importantly, tardy.

Months of debate cannot simply produce such weak suggestions that follow no frame of reference nor one school or train of thought. The suggestions are not timed and non-committal. Words such as “study”, “evaluate” and “consider” fill the blank in the phrase “The government will…”.

Obviously, most of the suggestions made so far stall decision making and are designed to placate the uproar over a growingly depressed economy. Furthermore, they will not rise to the level of the more comprehensive and qualitatively superior National Agenda.

Even the fight against corruption seems to have departed from going after those in the public sector to prey upon corruption in the private sector. The paralysis and lackluster performance in the public sector gas led to an overzealous pursuit in the private sector, the latter being an easier victim of the two. But the public still wants to know who the corrupt public officials are and see them punished.

It is, therefore, not surprising that the economic growth rate was forecast at 2.5 per cent (after accounting for inflation) by the IMF, months after the minister of finance announced it would be 3 to 3.5 per cent in order to pass the budget. I tend to believe that the growth will be even less.

Given that the population growth rate is 2.8 per cent, real wages will fall under the current ministerial Cabinet by more than 0.5 per cent, which will have adverse consequences on all.

Moreover, since the beginning of the year, the stock market value has fallen by over JD1 billion, thus reducing the wealth of every Jordanian by JD167 in less than a year, and the year is not over yet.

Economically insensitive decisions and witch hunts are causing further downfalls of the stock market. Furthermore, the balance of payment deficit is rising; industry losses are mounting and I believe unemployment will be rising - it has risen already in past two quarters. In other words, the current economic management team is not doing so well.

Lack of care for the economy, which in itself is dangerous, does not, however, justify making untimely and wrong decisions, or negative rhetoric from those who are supposed to guide our ship into safe harbours. And they have already begun sowing fear in the street of the pending world recession, forgetful that as a net importer of food, energy and machinery, Jordan could gain from world misery with cheaper inputs and imports.

We do not want to believe that our economy, which has the potential to be great, will remain vulnerable to every sign of turbulence in the world. This is not acceptable.

With neither compass nor rudder, something has to give. Let’s hope it will be the economy. It has already suffered enough.

ymansur@enconsult.com