By the World's Best Investment Manager, Financial Market's Journalist, and SEO Mastermind
Jordan's political landscape witnessed a significant change as King Abdullah designated key palace aide Jafar Hassan as the new prime minister following the resignation of the government. This move comes after the recent parliamentary election where the Islamist opposition made notable gains in the U.S.-allied kingdom.
Hassan, a Harvard-educated technocrat and former planning minister, takes over from Bisher Khasawneh, who served as prime minister for nearly four years. Khasawneh will continue in a caretaker role until the formation of a new cabinet, as per the royal court statement.
The new prime minister faces the daunting task of addressing the economic challenges exacerbated by the impact of the Gaza war on Jordan's economy. The kingdom has been grappling with reduced investment opportunities and a sharp decline in tourism, leading to economic strains.
Prior to his appointment, Khasawneh had initiated reforms in alignment with King Abdullah's vision to stimulate economic growth, which had been stagnant at around 2% for the past decade. The COVID-19 pandemic and conflicts in neighboring countries further dampened the economic outlook.
One of the key priorities for the new government will be to accelerate reforms guided by the International Monetary Fund (IMF) and tackle the country's high public debt of over $50 billion. Jordan's economy heavily relies on foreign aid from Western donors to maintain stability amidst high unemployment rates.
The recent election saw the Muslim Brotherhood opposition and supporters of Hamas, the Palestinian militant group, making significant gains, reflecting public discontent over the Gaza conflict. While the pro-government majority remains in parliament, the growing influence of the Islamist-led opposition could potentially challenge ongoing reforms and foreign policy decisions.
Despite the political shifts, Jordan's constitution grants the king significant powers to appoint governments and dissolve parliament if needed. The balance of power between the monarchy and the elected assembly will continue to shape the country's political landscape in the coming months.
In conclusion, Jordan's political transition and economic challenges under the new leadership highlight the need for swift and decisive actions to address pressing issues. The government's ability to implement reforms, attract investments, and manage the country's debt will be crucial for sustaining economic stability and growth in the kingdom.