King's Letter
Date: October 25, 2001
Title: Social Economic Transformation Program
In the name of God, Most Gracious, Most Merciful
Your Excellency, our dear Ali Abu Al-Ragheb,
the Prime Minister,
may God bless you,
I extend my greetings and respects to you who have my trust and high regard.
Since we took charge of the supreme sovereignty, we have firmly believed that our dear country could achieve economic success if we provided prosperity for our people. We had no doubt whatsoever that through the people's determination and their sincere efforts and sense of fellow-feeling, Jordan , in the twenty-first century, could be a model of justice, freedom, and a dignified life. This belief encouraged us to put the improvement of the lives of the Jordanian people, by providing them with a dignified standard of living, at the top of the list of our priorities, as did the late King Hussein, may God rest his soul. An objective observer contemplating Jordan 's liberal progress would recognize its achievements, too many to recount, which have become a source of pride for all Jordanians.
Although we are satisfied with our achievements in the last century, from the time of the establishment of Jordan through its consolidation as a modern nation for whom we feel such pride, we cannot minimize the challenges still before us, especially in that the performance of some institutions vis-à-vis others has not come up to the desired standard. As a result of different circumstances, some of which are beyond the control of Jordan , the economic situation became more complex in the last decade of the twentieth century. The dearth of natural resources played a role in this, as did the uncertainty of the future of the economy and the slump in production of the public sector. The economy witnessed a noticeable slowing down on average, which led to a drop in the individual's share of the national product. Moreover, foreign debts are still a heavy burden on Jordan , and thousands of young women and men are looking out for job opportunities. The problems of poverty and unemployment from which Jordan suffers have been and still are our greatest concern since we took charge of the supreme sovereignty. We have devoted ourselves untiringly to determine ways to promote economic activity, producing job opportunities in order to attain social well-being and abundance. Many plans and programs have already been initiated to achieve this. We recently spoke to Jordanian men and women about these specifics and our pleasure with the positive indications concerning the growth achieved over the past couple of years and the decrease of the burden of public debt.
Many steps and initiatives have been taken in this respect in the past. These include joining the Free Trade Agreement among Arab nations and the World Trade Organization; reaching a Free Trade Agreement with the United States; ratifying the European Union Agreement; establishing the Aqaba Special Economic Zone; as well as forming the Economic Consultative Council, which plays an important role in strengthening the union between the private and public sectors and in researching and initiating a number of undertakings that in themselves promote the economy and increase job opportunities.
Forthright and loyal, you have always lived up to our high expectations, Your Excellency. You shouldered the responsibility ably on both political and economic levels. You and those true Jordanians who worked with you have perfected numerous achievements that are evident to every impartial observer. You also adopted several bold initiatives and decisions to handle major long-pending issues and took on, under our guidance, a number of undertakings with positive effects in promoting Jordan 's progress.
Although we view the achievements with satisfaction and respect, the road ahead is still long, and we are yet in need of your dedicated and forthright efforts and those whom you choose to work with you from among your fellow Jordanians in order to arrive at the future we envisage for Jordan . In that vision, Jordan will remain strong and invincible, prosperous and secure. We have known you a true soldier, working assiduously for the glory of the nation. As we renew our confidence in you yet again, we are certain that you are worthy of this responsibility with which we charge you today.
During the past few years, Jordanians have unanimously defined the main components of the Economic and Social Change Program, particularly during the first and second economic meetings. These are represented in human resource development— through education, training, and culture— and in the necessity of reforms in finance, administration, education, and the judiciary. They also mean underlining the private sector as the major driving force in the promotion of economic growth, through encouraging both large and small project investments and speeding up privatization with its value to the nation in importing technology, increasing job opportunities, and improving performance levels. In addition, we must include the necessity of the strategic handling of urgent matters in agriculture and development of the governorates.
We thank the Almighty that our progress continues and, in the light of the regional and international economic changes, I address you and our institutions in both the public and private sectors, as well as every man and woman in our dear country, to stress that we have decided that the time has come to implement the Economic and Social Change Program which the nation has unanimously agreed upon. We must advance with bold, comprehensive, and coordinated steps to invest in the future, in the social services and structural reforms, and in the pace of attracting foreign and local investments. In this way, we can actually achieve tangible results in improving the income of the individual during 2002. It is necessary to introduce this into the general fiscal law and into future financial plans, within a clear strategy, both long and short term. This can be done through a considered change concentrating on financial reforms and launching the implementation of a comprehensive national program.
Our insistence on the necessity of beginning this forward-looking program immediately comes in response to our sympathy with the concerns of the people, to confirm our belief that the positive results, which reflect improvement in the Jordanian economy, should yield wealth and well-being to the individual. We also see that we now stand on solid ground, which will give us the chance to speed up the Privatization Program and attract necessary investments. This will help to implement major national projects such as water and electricity, the development of Aqaba, and others, contributing to economic growth and the expansion of the job market.
Since economic and social development cannot be achieved in the absence of initiative and creativity or in the presence of the fear of change, or in not keeping up with the spirit of the age, I charge you with the responsibility of implementing the reforms agreed upon. This should be included in next year's general budgetary plans and agendas so that the measures which guarantee the quickened pace of the implementation are proportional with the magnitude of the challenges and goals.
This requires a radical reconsideration of the methods of governmental decision-making, which should be institutionalized through national programs and policies. In this way, their implementation can be based on a considered time-line that responds to changes, so that governmental decisions do not deter the implementation of these projects, investments, and initiatives.
While awaiting the Cabinet's comprehensive plan and its detailed agenda according to a time-line that defines the executive competencies and the necessary means for this, we offer our ideas and recommendations concerning this forward-looking national program, to form the general framework of your working plan. We emphasize that general investment priorities should be especially concerned with the development of human resources, of basic government services, and of the governorates; speeding up the pace of structural, financial, administrative, and judicial reforms; to attracting private investments; and setting up major national projects. In this way we expect that next year, the specifics of this program and the working plan to form a sphere of our long-term national development strategy. Following are our principal ideas and recommendations:
First: Human resources development
It is necessary that we invest in the education and training of the people, for the individual is our guarantee for the future. Should we wish to prepare an intellectually- vigorous generation, able to think and analyze, aware of its rights and duties, and attached to its Arab and Islamic identity, then we need to develop the educational curriculum, the methods of teaching, and the training of teachers to achieve our goal. This should be carried out through a clear strategy that takes into consideration all the factors involved in educational instruction. Likewise, universities, professors, students, and research at the higher education level should take into account the needs of the job market and the expansion of our national economy.
As for vocational training, the Cabinet should support the National Council of Vocational Training and establish institutes for specialized training similar to those in developed nations. This presupposes ensuring a suitable climate so that the private sector can play its very important role in this field, particularly in harmonizing the requirements of the job market and the resources of the training operation.
With respect to youth and sports, we would like to see a national policy that guarantees to put the youth issue on its priorities list, allows private investment in sports clubs, and aims at encouraging professionals. We also hope to see the Olympic Committee as the authority in charge of sports, and the Council of Youth replacing the ministry.
Second: Principal government services
To ensure the dignity of the Jordanian and his well-being remains our overreaching goal. It is our primary effort, knowing that the fruits of change cannot be felt overnight. We know that a stratum of the Jordanian society has been hit so badly by difficult circumstances as to be forced to ask for financial aid, and we are aware that they want job opportunities in order to be productive and to participate in the nation's development.
Although temporary stopgaps and urgent aid cannot offer a permanent solution, they can at least protect the individual's human dignity. These measures can continue until the effects of economic and social expansion are felt, if God wills. Therefore, we call for a comprehensive review of all legislation related to social development and to waging war against poverty.
The healthcare of a Jordanian is the government's responsibility. This to us does not only mean availability of medication, but the likelihood of making available several major factors which should be given special attention so that a Jordanian can get good healthcare services at a reasonable price. Accordingly, health insurance and developing primary health centers, as well as raising the standards of both hospitals and those who run them should be a major issue for discussion by the Cabinet.
In the field of infrastructure and public services, it is necessary to observe that the comprehensive infrastructure perfected during the reign of King Hussein, God rest his soul, is one of the most important treasures of modern Jordan and should be improved. The government should do its best to provide resources and at once to remedy any difference between the levels of infrastructure in all the regions of the kingdom.
We mentioned earlier that our mission is incomplete unless Jordanians feel the effects of economic expansion and its positive influence on their lives. Accordingly, the development of the governorates was one of the six key issues agreed upon at the second economic meeting. At that time, general guidelines for a comprehensive strategy for the development of the governorates were defined.
We stress that this desired economic expansion couldn't take place unless it is based on an economy that is marked by excellence and based on knowledge, technology, and modern science. We also recommend that a forward-looking program for the development of small projects should be launched in the kingdom's governorates, through allotting certain sums for loans and projects, and offering technical aid and advice necessary for establishing small projects and guaranteeing their success.
Third: Structural reforms
Our investment in the individual and his well-being requires an investment in essential structural reforms as well as enhancing our progress with determined steps towards a bright future in the field of financial reforms. We stress the necessity of a rapid move to exempt industrial products from customs taxes, restructuring the tax code, and lowering tax percentages in support of the individual and private sector institutions.
The time has come for us to give the retirement issue the attention it requires. All indicators point out that during the coming decade, retirement will weigh heavily on the budget. Therefore, we believe it is proper to deal with this issue on the basis of systematic studies, and in such a way as to preserve for Jordanians their full rights, without derogations. Retired people have fulfilled their duties towards the nation and we should guarantee the safeguarding of their rights and their retirement savings.
This can become a reality only if there is a suitable legal climate. The major functions of the Cabinet are to work towards facilitating the mission of the judicial functions through innovation, development, and speedy improvements so it can carry out its full duties. The Royal Committee for the Improvement of the Judiciary has made concerted efforts to raise the level of the judicial functions, and many steps have been taken to facilitate litigation procedures. Accordingly, we look forward to stepping up the pace of applying the plan of promoting the judiciary and, in particular, supporting the judicial function with the necessary expertise. We also look forward to a speedier pace in qualifying and training judges to deal with modern innovations and the challenges they present.
As for administrative reforms, there is no doubt that a change in the view of governmental functions should be effected. This means that a division between drawing up the policies and executing them should be put in place, and the role of the responsible management be strengthened so that evaluating the implementation is clearly related to goals and priorities. Since three fourths of all Jordanians are members of the younger generation whom we hope to see as active participants in the growth of the nation, it is necessary to give them the chance to be creative and to serve and support the nation with their talents. Preparing technical and administrative institutions is an investment for the nation and should be taken quite seriously and protected to ensure the continuity of the modern successful nation. The right of the individual to freedom, justice, and a better life can only be reached through comprehensive improvement of the standard of living, social well-being, and supporting the nation's revenues. Thus, we believe that the true meaning of a union between public and private sectors is not only limited to a contribution to decision-making and advice, but is based on the sharing of gain and loss.
Economic prosperity, achieving well-being, and raising both the standard of living and incomes will benefit the nation's revenues and treasury, as well as the nation in general.
Fourth: Speeding up investments
One of the main cornerstones of the working plan agreed upon is that investment should be the driving force of economic expansion and the increase in employment. Accordingly, we look to promote a vast expansion in private investment.
Information forms the basis for achieving the suitable climate we require. Broadcast and printed information is a resource no one has the right to monopolize. It is not the government's information but the nation's information, expressing the conscience of the people and their identity. We must proceed according to a working plan in which we review our points of strength and weakness, in addition to the role of the institutions concerned with investments. It is necessary to step up decision-making in order to begin implementing our major national projects: water and electricity, gas, expanding Aqaba, and others. This also includes attempting to encourage national capital to invest in them, completing the privatization program that has already begun to benefit Jordanian economy.
In this context, we should try to give media institutions some freedom. They should be administered in such a way as to fulfill the reason for their existence. These institutions should function at a high level to ensure competition in the information market. This requires a vision and philosophy in keeping with the age. We believe that necessary measures to create a Higher Council for Media should be taken. It would replace the Ministry of Information and represent the activities of the civil society and experts and specialists.
We have already mentioned what we see as our priorities next year and in the near future. We should here repeat our unchanging principles. All Jordanians are equal, enjoying equal opportunities: no one has special privileges. The government must ensure Jordanians' right to be effective members in a civic society where their safety and political freedom are safeguarded, and development and economic opportunities are accessible to all. Jordan is a nation of institutions where law reigns. It grants and respects freedom of expression and speech, and democracy and plurality are ingrained in it. It is a secure and safe nation, wherein there is no place for corruption, favoritism, or for those who are tempted to help themselves to public funds.
Jordan is part and parcel of an Arab and Islamic nation. This is reflected in its identity and colors, our responsibilities and duties. It is a second home for our brothers in Palestine , offering them support until they gain their rights and establish a Palestinian state on Palestinian soil, with the holy city of Jerusalem as its capital. Jordan believes in a just and lasting peace and is conscious of its humanitarian role based on its Islamic, Arab, and Hashemite heritage.
The working arrangement with which we thought fit to charge the Cabinet is part of our vision of the future. It is an expression of a firm belief in our promising abilities. Achieving the goals we mentioned is inevitable, though some will take longer than others. This may require the cooperation of new expertise in the government, to help draw up the programs and take the responsibility of implementing them. We give you our full support to take the measures you believe to be necessary to ensure their realization.
We mentioned earlier the principles on which you can found the management of the administration. We instruct you to use the same principles to elect your colleagues the ministers, while devoting yourself to reviewing the ministerial team and the higher management in different ministries and departments. We also recommend that the evaluation of your colleagues the ministers and responsible officials should be based on the performance and implementation of the national program we referred to. Thus, each individual who falls short of attaining the goals that fall within his responsibility should give up his position to another colleague.
Your Excellency, from the position of responsibility and leadership, we urge initiative and looking to the future with a comprehensive and objective view. We also support boldness in work and the confidence in a bright future for the whole nation, and draw guidelines and definitions for this. Yet, at the same time, we highlight the necessity of bringing to bear all the nation's energy. We encourage those who are fearful, reach out to those who are skeptic, and take the hand of those who need support in order to build a model nation.
We thank you and your colleagues the ministers for your loyalty, uncompromising patriotism, and generous efforts, and look forward to seeing you take all necessary measures, including preparing a working plan based on our above-mentioned views. We hope that the detailed plan will be ready in three weeks.
I ask God to protect our beloved Jordan and may He grant us all the ability to attain the goals of our people, development, and well-being. He is the best help in time of need!
Peace, mercy, and God's blessings be upon you
Abdullah II
Amman , Sha'ban 9, 1422 Hijri
October 25, 2001 AD