Understanding Reforms:The Case of Jordan
Abstract in English:
Nevertheless, the socio-economic crisis spread dangerously at the late of the year 1988 and the beginning of the year 1989. Along the numerous rumors regarding the future of the Jordanian economy and what was happening behind the economic scene:
• The Central Bank sold a part of its gold and foreign reserves.
• Moreover, smuggling semi-organized and private capitals by transferring foreign currencies outside the country, increasing speculation by influential businessmen and investors, and finally proclaiming certain policies by the government and the Central Bank but implementing another.
• For all these reasons and others, weak decisions were taken rapidly; hence, public trust in the future of the Jordanian economy regressed significantly.
• Furthermore, while standards of living declined, the intensity of poverty increased.
• As a result, speculators and capital owners won the situation. Yet, the economic crisis rooted also from the governmental attempts to follow a national economic policy in which some of the apparent problems were handled.
• Consequently, the government promulgated the depreciation in the value of the JD intensified the crisis severely.
After the spreading of the latter deterioration, price levels were climbed, and for the majority of the population, standards of living declined too. This resulted in the acceleration of financial and economic pressures. Therefore, turning to the IMF for help and assistance was inevitable. Thus, the government agreed on framing a General Structural Adjustment Program for 5 years (1989-1993). These facts answer WHY Reform?