The description of a rentier state is incorrectly applied to Jordan, as the Jordanian economy operates differently from Gulf countries, Libya, and Iraq. Jordan, with limited resources and a legacy from the 1950s and 1960s when some countries expanded subsidized services like Egypt and Syria, implemented its own version of a welfare state in health, education, and other services. Successive governments expanded employment beyond operational needs. Administrative reform requires reducing government workforce burdens. Despite recent measures such as reducing government job supply and retirements, a comprehensive reengineering of many government sectors is needed, which may negatively impact consumption patterns, equally important as production environments. Reducing government operational costs corrects an old imbalance but creates new challenges related to overall employment. This requires enhancing the private sector’s capacity to absorb employment by granting it incentives to encourage expansion.
This shift transfers momentum from the public to the private sector, affecting not only economic conditions but also intersecting with the general political situation. The government withdraws from its patronage role over many aspects such as party sponsorship and expansion. Withdrawal from the welfare role does not mean shirking responsibility towards citizens but achieves justice by basing personal decisions on realistic premises, enabling positive incentives. The problem in Jordan was at times uncontrolled population growth encouraged by the welfare state, where a head of household with six or seven children demands full services and jobs, feeling excluded if not provided, despite the social burden exceeding the state’s offerings. Jordan avoided harsh direct guidance unlike Egypt, which limited beneficiaries by support cards.
The private sector has flexibility in economic and political roles but requires a supportive legislative and regulatory environment and coordination with all parties responsible for economic efficiency and social impact. Sustainability is essential to prevent the private sector from falling into quick-profit traps. The government operates in a complex, intertwined environment and is not isolated from other sectors. Social roles requiring awareness and dialogue take time, while sector engineering demands quick decisions, making coordination and effective communication by economic ministers critical during change and repositioning. The recent cabinet reshuffle aligns with this vision, seeking a new approach. Dismantling the old welfare state means establishing a state that guarantees opportunity provision and fair distribution based on clear and transparent merit principles. Such a state can achieve efficiency, promote society as an engine for economy and development, a model previously seen in countries like South Korea.
The key is understanding Jordan’s uniqueness and moving courageously and responsibly towards new suitable concepts for its new phase.
Recommended for you
Exhibition City Completes About 80% of Preparations for the Damascus International Fair Launch
Unified Admission Applications Start Tuesday with 640 Students to be Accepted in Medicine
Afghan Energy and Water Minister to Al Jazeera: We Build Dams with Our Own Funds to Combat Drought
Iron Price on Friday 15-8-2025: Ton at 40,000 EGP
Al-Jaghbeer: The Industrial Sector Leads Economic Growth
Ministry of Media Announces the 10th Edition of 'Media Oasis'