King Abdullah and Jordan's Economic Up-Turn

From International Business Wiki

[edit] Education and Professional Background of King Abdullah

• Eldest son of the late King Hussein and Her Royal Highness Princess Muna Al Hussein, born in Amman January 30th, 1962. [1]
• Primary education at the Islamic Educational College in Amman [1]
• Continued education at St. Edmund's School in Surrey, England. [1]
• Secondary education obtained at the Eaglebrook School and Deerfield Academy in the United States of America. [1]
• 1985 to 1993 - served in the Armoured Corps (3rd Division) [1]
• November 1993 - took full command of Jordanian Special Forces [1]
• October 1996- Assigned the re-organization duties of Jordanian’s Special Operations Command (SOCCOM) [1]
• May 1998- Promoted to the rank of Major General in the Jordanian Special Forces [1]
• February 7th, 1999 - Assumed constitutional powers as Monarch of the Hashemite Kingdom of Jordan. [1] (the day his father, King Hussein, passed away)

[edit] Key Milestones of King Abdullah

King Abdullah II has been determined to pull Jordan out of crisis and turn his country into a practical model in the region. Sustainable development, economic growth, and social welfare have been at the top of Abdullah’s priorities, and his fight to implement these actions has drastically improved Jordan’s economic and social status. Jordan’s economic issues were named Abdullah’s Top priority. Outlined above, Jordan was in drastic need for economic reform. His efforts have contributed to minimizing the country’s unemployment and poverty, heavily cutting national debt, strengthening economic ties with Arab countries, and join together with the new global economy.

• April 11, 2000 – King Abdullah had been pressing for membership into the World Trade Organization (WTO) since taking over reign in Jordan, which allowed his country to be the 136th WTO. Major economic and legislative reorganizations by Abdullah made Jordan’s admittance possible. [2]

• September 28th, 2001 - The U.S.-Jordan free trade agreement (FTA) was signed into law during Abdullah's visit to Washington, U.S. Abdullah and President George W. Bush negotiated the agreement, coming into effect December 17th, 2001. [1]

• January 11, 2003- A joint free trade agreement between the countries of Jordan, Egypt, Tunisia and Morocco was initiated by King Abdullah. The free trade agreement between these countries allowed their region to foster economic integration and boost their exports to the European Union. This agreement allowed member countries the ability to exploit their partnership with the EU, establishing laws regarding to the origin of a product. [2]

• REACH Initiative – King Abdullah negotiated with the country’s private IT sector to design and implement a program to accelerate Jordan’s presence in the world’s information technology realm. [5] Months of private planning unveiled Jordan’s REACH Initiative, which outlined a five-year strategy and execution strategy for Jordan’s information technology industry. Launched in 1999, the REACH Initiative became a plan of action to strengthen Jordan's emerging IT industry. The program’s five year objectives[5];

• 20,000 Information Technology and 10,000 related jobs created by 2004
• Reach US $550 million annual exports by 2004
• Reach US $150 million in cumulative foreign direct investment by 2004

were met by the end of its fourth year in action, deeming their country a key player in the information technology industry. [3]

REACH

Regulatory Framework

Enabling Environment

Advancement Programs

Capital & Finance

Human Resource Development

• October 2002 – Abdullah realized the need to strengthen his country’s foundation of a pragmatic, democratic state. Forming the “Jordan First” national plan instilled a sense of national identity and pride among citizens. Abdullah reinforces the belief that every citizen has a role in building a “natural kingdom.” [2]

• May 1st, 2002 - The Jordan-EU Association Agreement came into effect. This agreement sought out to establish a free trade area between Jordan and the EU by the year 2010. This agreement was signed by the Late King Hussein, November 24th, 1997, and ratified by the Jordanian Parliament in September 1999. King Abdullah pressed the neglected agreement info effect, pushing his country to succeed and triumph into the future. [3]

• Privatization and The World Bank - Possibly the most successful privatization program pushed by King Abdullah in the Middle East. Abdullah pressed for Jordan’s citizens’ ability to privately invest in key sectors of the country’s economy. By taking immediate initiative once in office, Abdullah spurred the privatization proceeds to a historic level of over twelve percent of the country’s GDP ($900 million, USD.) Citizens and private investors are now shareholders in the following areas and ways;

• A 33 percent sale of the Jordan Cement Factories (JCF).
• The granting of four bus concessions in the Greater Amman area (public transport corp. - PTC).
• The granting of a concession for the Ma'in Spa.
• A 49 percent sale of the Jordan Telecommunications Corporation (JTC).
• A water management contract for the greater Amman area (Water Authority of Jordan- WAJ).
• The divestiture of government shares in approximately 44 companies at approximately 137 million U.S. dollars. Total proceeds are in excess of 900 million U.S. dollars. [3]

There is no question as to the significant impact King Abdullah II has had on Jordan’s economy, international presence, and cultural well being. The devastating effects of the Cold-War, the plummet in oil prices throughout the 1980’s, the country’s heavy dependence upon external income sources, and the numerous riots throughout the country [4] made his inheritance of the throne a somewhat upward battle, but King Abdullah II has brought the country hope and promise for the future.

[edit] References

1) Official website of King Abdullah II, http://www.kingabdullah.jo

2) The Cold War and the Middle East , Yezid Sayigh, Avi Shlaim, 2006, http://books.google.com/books?id=oWdSQWuqOmwC&pg=PA120&lpg=PA120&dq=1980s+jordan&source=bl&ots=Y2sg8Hqwyk&sig=Aa9r3WNyFNB_yR72Cj4WlkOUn-U&hl=en&ei=33bGScLRFN3JtgfM5onICg&sa=X&oi=book_result&resnum=6&ct=result#PPA19,M1

3) “Jordan’s Economic Upturn,” The Washington Post, February 2003, http://www.washingtoninstitute.org/templateC05.php?CID=1587

4) “Jordan since 1989: A Study in Political Economy,” Warwick Knowles, The Middle East Quarterly 2008 http://www.meforum.org/956/jordan-since-1989-a-study-in-political-economy

5) Jordan’s REACH initiative, http://www.reach.com.jo/