Important Economic Decisions - By Ahmad M. Awad, Jordan News
The recent economic decisions approved by the Council of Ministers carry important positive implications, as they move toward supporting national production, improving public services, and strengthening the ability of the Jordanian economy to confront economic and social challenges. Considering the living pressures facing the majority of Jordanian households, these decisions reflect an awareness of the importance of stimulating the economy and improving citizens’ standard of living in parallel.
In this context, the decision to raise wages stands out as one of the most impactful decisions on citizens’ lives. The rise in the cost of living over the past years has eroded a significant part of the purchasing power of wages and incomes, making any wage increase an urgent economic and social demand. The importance of this decision lies in its contribution to improving income levels, strengthening households’ purchasing power, and stimulating domestic demand, which can have positive effects across various economic sectors. However, achieving these objectives requires that the decision be accompanied by effective market oversight to prevent any price increases that could absorb the impact of the wage rise. The success of a wage-increase policy is directly linked to the government’s ability to maintain price stability and promote fair competition in the markets.
Among the important decisions as well is the increase in the price preference granted to national industrial products in government tenders from 15 percent to 20 percent. This step is particularly significant because it strengthens the competitiveness of national industry, supports the expansion of production and investment, and opens the way for creating new job opportunities. It would be even more effective if it were more closely linked to the employment of Jordanians under decent working conditions. Directing a larger share of public spending toward national products is also consistent with best economic practices adopted by many countries to protect their national industries and enhance their contribution to economic growth.
The decisions related to supporting the tourism sector are no less important, particularly the inclusion of tourist transport companies in the support programs and facilities granted to the sector. Tourism is one of the vital sectors capable of generating employment opportunities and stimulating many related economic activities. Therefore, strengthening its ability to recover and grow represents investment in the national economy as a whole.
The decisions related to developing vocational education, regulating professional work, and ensuring quality also constitute an important step toward building more efficient human capital capable of meeting labor market needs. The challenge facing Jordan is not limited to providing job opportunities; it also extends to providing the appropriate skills required by our national economy. This makes the development of the vocational education and training system an economic and developmental necessity.
The decisions aimed at strengthening cooperative work also carry great importance in supporting local development — after decades of neglect — and enabling communities to establish sustainable productive projects. Successful cooperatives can contribute to job creation, improve income levels, and enhance citizens’ economic participation.
At the level of public services, financing the health sector reform program, supporting housing programs for low-income families, and merging the civil and military consumer corporations are all steps aimed at improving the quality of services provided to citizens and enhancing the efficiency of public spending.
The real value of these decisions does not lie merely in announcing them, but in their ability to translate into tangible results that citizens can feel in their daily lives, through improved incomes, support for national production, development of public services, and enhancement of the legislative and developmental environment. Therefore, this package represents a positive step in the right direction, provided that it is implemented efficiently and transparently, and is subject to continuous follow-up and clear measurement of its economic and social impact. This would ensure that its benefits reach various segments of society, contribute to strengthening economic growth and improving living standards, and reinforce confidence in the ability of public policies to respond to the challenges facing Jordan.