Jordan PM reshuffles cabinet as IMF reforms in focus

Jordanian Prime Minister Omar Al-Razzaz announced a cabinet reshuffle on Thursday as the government looks to push through reforms intended to revive stagnant economic growth and cut public expenditure. (Reuters)
Updated 11 October 2018
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Jordan PM reshuffles cabinet as IMF reforms in focus

AMMAN: Jordanian Prime Minister Omar Al-Razzaz announced a cabinet reshuffle on Thursday as the government looks to push through reforms intended to revive stagnant economic growth and cut public expenditure.
Razzaz, a former World Bank economist, was appointed by King Abdullah in June to replace Hani Al-Mulki, who resigned to defuse a crisis that saw some of the largest protests in years over planned IMF-driven austerity measures, including tax hikes.
In an apparent bid to calm widespread discontent over rising economic hardship Razzaz — who had said he would re-evaluate his team after 100 days in office — reduced the 29-member cabinet to 27.
But he also kept key ministries — notably the interior, finance and foreign portfolios — unchanged, and has warned Jordan would pay a heavy price if a tax reform bill failed to pass into law this year.
Razzaz had angered unions and civic bodies when he introduced the IMF-inspired bill in September, making only cosmetic changes to one that brought down Mulki.
Seen as a better communicator than his predecessor, Razzaz had promised to restore public trust in a country where many blame successive governments for failing to deliver on pledges of reviving growth that is stuck at around 2 percent, cutting waste and curbing corruption.
But he installed many of the old-guard conservatives and tribal figures in his cabinet who held sway in previous administrations, and critics — who have so far stopped short of calling for new street protests — say he has taken no clear steps to hold anyone accountable for graft.
Jordan’s bloated bureaucracy is responsible for some of the world’s highest government expenditure as a percentage of GDP.
Under an IMF austerity plan it must rein in spending to cut spiralling debt standing a $37 billion, equivalent to 95 percent of gross domestic product.
Razzaz said he wanted to push through the tax bill this year to retain IMF support and avoid higher servicing costs on over 1 billion dinars ($1.4 billion) of foreign debt due in 2019.
Any rejection of the bill that parliament will begin debating next week raised the prospect of ratings downgrades, Razzaz said in an interview with state television last month.
“We will pay a heavy price if we enter next year without a tax bill,” Razzaz said, adding the reform would bring in an extra 300 million dinars in revenue.
Jordan’s economy has also been hit by regional conflict that has weighed on investor sentiment.


Thousands flee bombs and hunger in eastern Syria

Updated 42 min 14 sec ago
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Thousands flee bombs and hunger in eastern Syria

  • UN Spokesperson says at least 16,500 people have been forced to flee their homes
  • Almost 320 civilians have been killed, including 113 children

AL-HOL, Syria: Faraj was born in the pouring rain on a nondescript stretch of desert road in eastern Syria as his family fled escalating fighting over the Daesh group’s last bastion.
His family was part of a group of around 200 civilians who managed to escape from a pocket of territory in Deir Ezzor province that is still held by the jihadists.
“I had to resist hunger, cold and rain,” the newborn’s mother Kamela Fadel tells AFP in a camp for displaced people in the northeastern region of Al-Hol.
The young woman, her husband and their four children now sleep under white tents, with hundreds of other people who fled eastern flashpoints in past weeks.
They are huddled on straw mats laid out directly on the gravely earth, wrapped in blankets and hugging bags packed with their meagre belongings.
A nurse helps an elderly lady to the camp clinic as children play at scaling piles of foam mattresses and families sit cross-legged, eating from tin cans.
It is still cold in the vast tent but at least they are sheltered from the rain.
They walked for several days in the winter weather before being met last week by the Kurdish-led Syrian Democratic Forces (SDF) battling IS in Deir Ezzor.
“It was hunger that prompted us to leave, there was nothing left to eat,” says Kamela’s husband, still sporting the thick beard the jihadists impose on all adult men.
He and his family were living in Al-Shaafa, one of the last villages, together with Sousa and Hajjin, that are still under the control of IS.
The SDF, with the support of air strikes by the US-led coalition against IS, launched a major operation against the last rump of the jihadists’ moribund “caliphate” in September this year.
The jihadists hunkering down in their Euphrates Valley heartland have offered stiff resistance, thwarting coalition hopes of a quick victory.
Warplanes have been raining bombs on IS targets in and around Hajjin, causing significant civilian loss of life in the process, according to the Syrian Observatory for Human Rights.
The Observatory says almost 320 civilians have been killed, including 113 children.
“There is destruction everywhere because of the fighting and the bombardment. We were scared for the children,” says Faraj’s father.
Local camp official Mohamed Ibrahim told AFP around 1,700 civilians had arrived in Al-Hol in recent days.
The intensity of the bombardment and the remoteness of the area make it is difficult to estimate the number of civilians who remain, voluntarily or not, in the IS pocket.
“In Syria, displacement leads to food insecurity as people leave their belongings behind,” said Marwa Awad, a spokeswoman for the UN’s World Food Programme in Damascus.
“This is why it’s vital to maintain a lifeline of food assistance for vulnerable families such as those escaping violence in Deir Ezzor,” she said.
Awad said at least 16,500 people had been forced to flee their homes in Hajjin and surrounding areas since violence in the area intensified in July this year.
SDF fighters too suffered heavy losses in their assault on Hajjin, where a group of die-hard jihadists with little to lose are making a bloody last stand.
“There are land mines everywhere on the roads,” says Abu Omar, one of the displaced in Al-Hol.
Fearing retribution against relatives who have stayed behind in IS-controlled territory, he refused to give his full name.
“The village and our homes have been destroyed by the bombardment,” says Abu Omar, a man in his thirties.
“There are still high-ranking members of IS and foreigners there, but most are on the Hajjin frontline,” he says. “They won’t give up easily, they are fighting to the death.”
The US-led coalition puts the number of jihadist fighters holding out in that area at around 2,000.
“The day we managed to flee, the fog was thick and gave us cover. Had they seen us, they would have wiped us out,” says Ziba Al-Ahmed, who escaped the town of Sousa.
“The bombardment was so scary and our bellies were crying,” says the mother of four.
Their farming machinery was too precious to leave in Sousa and her husband stayed behind with one of their daughters.
“We’re worried about them, we don’t know what’s going to happen to them.”