Jordan faces a new remodeling of its Government
New remodeling in Jordan of the Prime Minister's Executive Omar al-Razaz, whose decree of approval has been promulgated by King Abdullah II, due to the bad economic situation that the country is going through, plunged into a debt that exceeds 94% of the Gross Domestic Product (GDP).
The Government crisis is the fourth that has occurred since Al-Razaz assumed his position as Prime Minister of Jordan in June 2018 with the mission effectively implementing measures that solved the economic problems of the Jordanian kingdom.
The head of government is a renowned economist who has worked for international institutions to which the monarch entrusted the mission of redirecting the financial situation of the country; something that, so far, has not achieved, thus unleashing a carousel of remodeling of the Executive of the Arab country.
Al-Razaz replaced Hani Mulki, who had to resign due to widespread protests in Jordan on account of the fiscal measures imposed to overcome the economic crisis. These were imposed by the International Monetary Fund (IMF) as guidelines to reverse the economic decline of the nation; including key fiscal reforms within the new Income Tax Law, measures aimed at increasing productivity and investment, and adjusting bank interest rates. Since then, the popular rejection of the economic recipes received has been manifesting, from the moment Mulki approached the problem until he took charge of this Al-Razaz, who is accused of not entering into the true problems of society and stay only on the surface. Several experts accuse the austerity plan designed by the IMF for having worsened the status of the most disadvantaged and also harmed the middle classes, increasing the gap between the richest and the most impoverished sectors.
The country's poor economic trajectory has meant that since 2010 the public debt has grown from 69% of GDP to the current 94%. And the turn in the government team has to do with the attempt to redirect the national financial situation.
The change of government has logically affected the Ministry of Finance. In this way, Mohamad al-Isis takes over this portfolio to give a boost to the economic area and to redirect the current bad drift by correctly implementing new guidelines imposed by the IMF a month ago. Al-Isis, a former royal advisor, has left his post as Minister of Planning and International Cooperation to take charge of Finance, and has replaced him in the post of Wassam al-Rabadi. The new head of the Jordanian economy replaces Ezzeddine Kanakriya, who disappeared definitively from the Executive's plans because he failed to refloat the situation.
Another important detail of the new Government is that the Ministry of Education now has a visible head Mnaizel al-Nuaimat, who replaces Walid al-Maani after he resigned for the management of the strike of almost a month of teachers and professors, who finally agreed with the Executive on the increase in wages they claimed. Meanwhile, Foreign Minister Ayman Safadi and Interior Minister Salameh Hammad keep their positions.
Al-Razaz himself was the one who urged his ministers to resign without giving any explanation. According to government sources, the head of the Jordanian Executive wanted to "elect ministers who guarantee greater harmony in the Government and include elements capable of implementing a package of economic measures that he adopted last month."
Al-Razaz said in this regard that the remodeling is due to the "needs of the next phase", referring to the effective application of new IMF measures, which approved a disbursement of 625.5 million euros for the total of the last money grant program to Jordan.
The turn of the government team has to do with the intention of redirecting the economic situation, since the measures have not been applied conveniently and the scenario in the country is still not very encouraging.
The economy of the country still does not go back, although the Executive has indicated that this is partly due to the weight that the State supports for hosting a huge number of Syrian refugees (1.3 million, according to the Jordanian Administration, and just over 600,000 , according to the United Nations Organization), fleeing the civil war that ravages the Syrian nation for eight years.
According to the Jordanian Ministry of Planning, expenses have tripled due to the provision of basic services for refugees and the need to secure borders and strengthen internal security.
And it is that the situation begins to be pressing for Jordan, whose public debt reached 28.5 billion dollars in October 2018, more than 94% of GDP; On the other hand, unemployment stood at 18.7% at the end of last year. In addition, the general budgets for 2019 have included the forecast of a deficit of 4% of GDP.
Regarding the rest of the names that star in the change in the new Al-Razaz Executive, Muhadin Tuq stands out as head of the Ministry of Higher Education, Salé Jarabsé as Minister of the Environment, Ibrahim Shahadé, as Minister of Agriculture, Mohamed Jalaile, as responsible from the Islamic Affairs portfolio, Basim Tueisi, as Minister of Culture, Fares Braizat, as Minister of Youth, Uisam Rabadi, as Planning Officer, Jalid Saif, as Head of Transportation, and Amjad Adailé, as Secretary of State for Affairs media.