Jordan has been facing significant economic challenges for decades due to its geographical location in a turbulent region and its heavy reliance on foreign aid.
اضافة اعلان
Achieving self-sufficiency and independence in Jordan is not an easy task, but it is’nt impossible. It requires strong political will, structural reforms, and investments in promising sectors such as technology, renewable energy, and tourism.
Enhancing education and vocational training, improving the business environment, and supporting the private sector are some of the key factors in achieving self-sufficiency.
Achieving self-sufficiency requires a clear strategy that focuses on strengthening local resources, diversifying the economy, and improving the investment environment.
The main economic challenges Jordan faces are summarized as follows:
Firstly: Lack of Natural Resources.
Jordan suffers from a scarcity of resources, particularly water and energy. It relies heavily on importing oil and gas to meet its needs. Additionally, Jordan is one of the world’s most water-scarce countries, which negatively impacts both the agricultural and industrial sectors.
Secondly: Dependence on Foreign Aid.
It is important to note that aid does not provide a sustainable solution for the Jordanian economy, yet we are heavily dependent on it at present. There must be a long-term plan to overcome this significant challenge, which prevents the country from achieving self-reliance, aside from the pressure it exerts on Jordan in various political files.
Thirdly: Unemployment and the mismatch between education and labor market needs.
The unemployment rate in Jordan is about 23%, with youth unemployment reaching around 50%. One of the main reasons for this issue is the mismatch between educational outcomes and labor market demands, creating a gap between available skills and private sector needs.
Fourthly: Weak Private Sector.
The private sector suffers from weak competitiveness due to high operational costs, bureaucracy, and limited access to foreign markets. Additionally, the heavy reliance on public sector jobs limits growth opportunities in the private sector.
Fifthly: Refugees and Economic Burdens.
Jordan hosts over 1.3 million Syrian refugees, putting enormous pressure on infrastructure, public services, and already limited resources.
Despite these challenges, Jordan has several advantages and strengths that can contribute to achieving self-reliance, such as human capital, geographic and strategic location, and renewable energy. The importance of renewable energy lies in reducing the imported energy bill and lowering costs for various economic sectors, especially the industrial sector.
The technology sector is also an important strength, showing significant growth, as Jordan has become a regional hub for startups.
This sector can serve as a pillar for economic growth.
Additionally, tourism is a major source of revenue for the treasury if the tourism infrastructure is developed and Jordan is promoted as a safe and diverse tourist destination.
Another strength is Jordan’s relatively good educational level, which could be a key driver for the economy if directed toward innovation and entrepreneurship.
In summary, Jordan has the potential to turn challenges into opportunities. Achieving self-reliance requires structural reforms, investments in promising sectors, and maximizing strengths, along with strengthening collaboration and partnership between the government and the private sector. Jordan has the potential to achieve this, but success requires genuine will and sound strategic planning.
