Call for a quote economic reform programs

2/16/2016 0:00

Baghdad Imad emirate
Called for an economist to quote the Jordanian experience and work in accordance with the requirements of the stage and the circumstances through which Iraq for the purpose of the success of the economic reform programs under the plan.

He d. Qusay al-Jabri «morning» because of endured the Jordanian economy from the crisis, foreign debt due to the decline in foreign exchange reserves, compared needed to finance imports needed for the development process, which has been reflected in the worsening of the current account deficit, Vkdammelt Jordan since 1989 on the agreement with the IMF and World Bank international to implement economic reform programs, which is this year, the beginning of a program of reform there.

According, the economic conditions that led to the application of the economic reform programs there began several stages, which were years 1970 to 1980 is the beginning of the start of the development of the Jordanian economy, as a result influenced by a range of factors.

Among the most prominent of these factors was the rise in crude oil prices and entailed positive effects, represented higher financial returns-oil Arab countries, which reflected a significant increase in the volume of aid to Arab and loans to Jordan, and the increased migration of workers to the Gulf states, which led to relieve unemployment and rising remittances from those workers , it was accompanied by an increase in average per capita income and increasing aggregate demand, which coincided with the rising cost of fuel and then a high general level of prices, which led to increased government support for each of the prices of food and fuel.

He said al-Jabri: in the early eighties broke the Iran-Iraq war, where he took a new grants impact on the economic climate of the region in general and Jordan in particular is reflected positively on the Jordanian economy through the transformation of the port of Aqaba to artery compensates port of Basra inactivated by the war, and it was for that matter a significant impact on foreign trade to Jordan and the recovery of transit through the port of Aqaba.

He continued: saw-term 1983.1988 global recession was reflected in the decline of the economic and financial performance for Jordan during the same period, and this has been evident through regional trade fell by deflationary aid implemented by countries in the region as a result of the decline in crude oil export revenues, as Jordan exports of key raw materials revenues were affected by the lack of the demand for them, and then drop in global prices for those materials, added to that decline in money flows from remittances real GDP decreased the volume of investment in Jordan and then per capita income level has dropped to 2 percent a year.

He continued Jabri: in light of the continuing decline in foreign financial returns Jordan, which was up more than a third of gross domestic product, the Jordanian government has sought since the eighties to contain the fiscal deficit and balance of payments deficits through internal and external borrowing significantly, what brought to the stage where Jordan exhausted resorting to borrowing and even lower foreign reserves Kingdom of Jordan to unprecedented levels, or internationally acceptable.

He stressed that this case without the ability to bridge the foreign debt dues at the end of 1988, and became Jordan burdened by a crisis of indebtedness stifling that reached to the gross domestic product, about 190 percent, and made ​​things difficult because of rumors about burnout foreign reserves, and the spread of a negative outlook on the Jordanian dinar exchange rate, which led to the emergence of frantic movement to get rid of assets in Jordanian dinars and the exodus of capital abroad.

He concluded Jabri on to say: Jordanian government approved the signing of the first economic reform program with the international Monetary Fund and the World Bank in 1989 because of the need to borrow and bridging the shortfall in financial resources and scheduling of debt with the Paris Club.

It was the first agreement covers the 1989, 1993, but stalled because of the repercussions of the Gulf crisis in 1990, and after quick to Jordan to pursue negotiations with the international Monetary Fund and the World Bank in 1991, and received The second agreement, which covers the period 1992.1998, and then edit the three years the last of it for the years 1996.1998 and after the expiry of the time limit for the second agreement, the third agreement obtained It covers the period 1999.2004, followed by the fourth phase of a period of 2004.2006 fifth stage for a period of 2007.2012.