Unsustainable borrowing

Deputy Prime Minister and Minister of State for Economic Affairs Jafar Hassan said at the recent  panel  organised by the Jordan Strategy Forum held to discuss national  economic and fiscal plans and their impact on stimulating Jordan’s economy that “Jordan cannot continue borrowing and accumulating debts”. 

These wise and cautionary words are an understatement given the fact that the country has been steadily accumulating debts to unsustainable proportions. 

Hassan is, therefore, effectively saying “enough is enough”, no more increases on debts and measures must be undertaken to lower that financial burden in order to maintain a healthy economy and sound fiscal policies. 

The deputy minister also said that obvious during an interview last Friday with Jordan Television on the same subject that Jordan has really no option other than becoming self reliant if not immediately than gradually. 

No one in his right mind would have difficulty endorsing these timely warnings but the question that remains is “how” Jordan can become self reliant and stop accumulating debts.

Pundits may differ on how Jordan’s national economy can reach the level where it can stop adding debts to its already burgeoning large debt and get closer to becoming self reliant. 

Achieving self-reliance is a long-term goal and cannot be attained by a magic wand. What can be achieved steadily is the reduction of the national debt first by halting or at least slowing the rate of  the accumulation of additional debt and then do whatever is necessary to gradually decrease it to manageable proportions. 

The deputy prime minister also said that the government is sensitive to the economic hardships being faced by the majority of Jordanians.  Yet being aware of and sympathetic with the public over their economic woes and doing something about it are two different things. This means the government remains deadlocked between what it wishes to do to put the economy on the right course and what it  really can do to attain this goal.