Fourth Cabinet reshuffle raises questions about economic reforms in Jordan
Jordan’s prime minister conducted a Cabinet reshuffle for the fourth time since ascending to power to advance economic reforms required by a loan deal with the International Monetary Fund.
Less than two weeks after he unveiled on Oct. 27 what was described as “a comprehensive program” to stimulate the economy, Jordan’s Prime Minister Omar Razzaz reshuffled his Cabinet Nov. 7, effectively letting go of the head of his economic team, Deputy Prime Minister Rajai Muasher, and Finance Minister Ezzeddine Kanakrieh. Muasher is believed to have been a staunch supporter of fiscal reforms backed by the International Monetary Fund (IMF) under a 2016 agreement.
The reshuffle affected other portfolios as well. But the main heading for this unexpected move — a few days before parliament was to be back in session — was the departure of both Muasher and Kanakrieh, who only a few days ago, on Oct. 27, went live on local television to explain the various components of the stimulus package. Former Minister of Planning Mohamad Al-Ississ, a Harvard graduate and former senior economic planner at the royal court, was given the finance portfolio. He is now believed to be in charge of implementing the new plan to revive a stalled economy.
The new economic approach may be a hybrid between continuing with fiscal reforms and a public sector overhaul, and a retreat from austerity measures by offering incentives to investors and the private sector in a bid to trigger the economy. There is widespread public rejection of what is often described as “IMF dictates” on the government that are seen as inimical to the objective of boosting economic growth.
This was the fourth time in 17 months that Razzaz had requested King Abdullah reshuffle his government — and like the last three endeavors, Jordanians were left to wonder what the move was all about.
