Four plans to guide the economy

The government is not short of plans. It has multiple fiscal, economic and social plans to guide its behaviour. These plans overlap in time, short, medium and long term.

The ministry of planning, under its current minister, Imad Fakhouri, is very active in the preparation of plans, following up on their implementation and sounding the public opinion.

One does not know whether the Ministry of Planning will maintain this momentum under other governments and ministers.

On the table are four plans. The first is the official budget for 2016.

This document is binding. It will prevail during this year without having to undergo any change.

In fact, most items in the annual budget are taken for granted. They are imposed on all governments, as well as on all ministers of finance, so much so that a new minister of finance did not change a single figure in the draft budget prepared under his predecessor.

The second plan is meant for the short term. It is the Economic Reform Programme, to be agreed upon with the International Monetary Fund (IMF), the details of which are expected to be revealed any time soon.

The third plan is meant for the medium term. It is the Jordan 2025 document, supposed to be a national vision and strategy for 10 years, 2016-2025.

The fourth plan, which is meant for the longer term, is dubbed the Executive Development Programme. It aims at achieving sustainable economic and social development and extends to 2030, in accordance with the millennium objectives.

At one time, critics used to blame the government for not having any plan to follow in the economic arena.

Now we can say that the government has at once four, the shortest covering one year, the longest extending for 15 years and two more plans in between.

The credit for the preparation of economic plans and programmes and disclosing them to the public for free discussion goes to the Ministry of Planning operating under an activist minister.

In Jordan’s experience, long-term planning must undergo repeated review because the local and regional circumstances change quickly.

They impose themselves on the planners. That is why short-term plans are more serious and credible than long-term plans.

The budget has to be adhered to 100 per cent.

The Economic Reform Programme is flexible, as the IMF accepts alternative measures and tolerates delays and postponement, depending on the circumstances.

The 10-year vision is not more that a set of estimates and projections that may or may not be realised. In general it is not binding on economic decision makers.

The Executive Developmental Programme, covering 15 years till 2030, falls under wishful ambitions. It may help attract grants and foreign aid when the objectives are practical and convincing.

It is seen as a part of Jordanian steps and ambitions towards achieving the developmental objective set by the Millennium Development Goals.

It focuses on education, health, environment, poverty and unemployment, all issues covered by the MDG’s comprehensive agenda.