Jordan's new PM faces dilemma on tax reforms

Razzaz, whose nomination became subject of debate in Jordan, pledges new taxation system that will be fair to all.

by
    Jordan's new PM faces dilemma on tax reforms
    Prime Minister Omar al-Razzaz: 'I pledge to have dialogue with all groups and to work together with them to reach just taxation system that will be fair to all.' (Khalil Mazraawi, pool via AP) [The Associated Press]

    Key Demands

    • Change of course in the country’s economic policies
    • Combat corruption effectively
    • Restore the constitutional monarchy system
    • Direct election of the prime minister by the people

    Only days into his appointment by King Abdullah II, Prime Minister Omar al-Razzaz is facing opposition from military veterans, while analysts consider his appointment as a pragmatic move.

    The country's powerful Military Veterans Association issued a statement earlier in the week signed by several retired senior military leaders and others decrying al-Razzaz' appointment.

    The statement called the appointment "shocking" and a "provocation".

    He is an honourable man and a technocrat, however, he is unfit to lead the government at this critical junction.

    General Musa al-Adwan, former commander of Jordan's Special Forces

    Retired General Musa al-Adwan, a former commander of Jordan’s Special Forces, told al Jazeera that al-Razzaz is not the right man at this time. 

    Retired army General Musa al-Adwan [Al Jazeera]

    "He is an honourable man and a technocrat. However, he is unfit to lead the government at this critical junction,” said al-Adwan, who is one of the signatories of the veterans' statement.

    "He was part of the old failed government, and if he is not empowered to lead the government with a great measure of independence, he will fail,” he said.

    Popular prime minister

    Fahad Khitan, a prominent Jordanian political analyst, downplayed the veterans' statement and motivations.

    "There is a difference between the current protest movement against the proposed tax law and politically motivated ones such as those led by the Hirak, an opposition formation dominated mainly by former government and military officers hailing from the country’s powerful tribes," Khitan said.

    "The current protest movement is led by the middle class and business community, who felt the proposed tax law will have dire consequences on them.

    "Razzaz will be a popular prime minister because of his previous job as an education minister which endeared him to the public. This is the first time I see enthusiasm for a prime minister in the country," he added.

    Al-Razzaz has previously pledged to hold a dialogue over the controversial tax law, but on Thursday he was reported to have said that he would drop the proposed bill, conceding to a key demand of protesters. 

    He tweeted on Wednesday "I pledge to have dialogue with all groups and to work together with them to reach just taxation system that will be fair to all."

    Economist Mazen Irsheid told Al Jazeera that the Jordanian government "has no choice but to go ahead with its planned economic reforms."

    "I do not think Razzaz will cancel the law because Jordan has committed itself to tax reform with the International Monetary Fund [IMF].

    "The new government will technically withdraw the law’s current version and start a dialogue with different groups including the professional and trade associations. It will then submit a watered-down version of it to the parliament within several weeks," he told Al Jazeera.

    Irsheid thinks the appointment of al-Razzaz was a smart move by the king.

    "It is possible that the king has selected Razzaz who worked for IMF before to assure the international agency that Jordan is still committed to its planned economic reforms," he said.

    The key demands

    The Hirak also called on the king to initiate structural economic and political reform.

    The main demands of the Hirak and the military veterans group is changing the course of Jordan's economic policies, combatting corruption, restoring the constitutional monarchy and the direct election of the prime minister.

    Al-Razzaz, who was minister of education in the previous government of former Prime Minister Hani al-Mulki, faces the daunting task of trying to strike a balance between the need to pass the controversial tax law and satisfy the demands of the street and opposition groups.

    King Abdullah sacked al-Mulki after mass protests demanded his resignation and the withdrawal of a proposed tax law that would have increased taxes across the board and caused further hardship on the population.

    In Jordan’s political tradition, the prime minister often functions as a “buffer” between the king and the population when things reach a boiling point.

    Historically, prime ministers have been appointed for as little as one month or as long as three years, mainly to enact specific laws or resolve domestic or regional crises, after which they were dismissed.

    The king has repeatedly said in public that he wants to see strong political parties in the country so they can stand for elections and form an elected government.

    Fighting corruption

    Hussam Abdallat, one of the key leaders of the Hirak and former senior government official, told Al Jazeera that "Razzaz' appointment is just a change in decorum, not in substance."

    "What we need is a fundamental political and economic change that will restore the constitutional monarchy system and get rid of corrupt officials who still dominate the government ranks today." He said

    While asserting that al-Razzaz is "clean", opposition groups still consider him one of the neo-liberal advisors responsible for the country’s economic collapse.

    If the king backs the new prime minister and urges him to wage war on corruption, the country will make it through this difficult period.

    General Mahmoud Hammad, former Chief of Staff of Jordan Land Forces

    Retired General Mahmoud Hammad, former chief of staff of Jordan's land forces, told Al Jazeera that the biggest problem facing the new prime minister and Jordan, in general, is "corruption."

    He said Jordan would be on the track of recovery if it had a government that is serious in its efforts to fight corruption.

    Hammad told Al Jazeera that he had on one occasion advised the king on the urgent need to get rid of corrupt advisors who are eroding the people’s trust in the regime.

    "The king must act decisively and back the new prime minister up against those who would try to weaken him."

    "If the king backs the new prime minister and urges him to wage war on corruption, the country will make it through this difficult period," he added.

    Follow Ali Younes on Twitter: @ali_reports

    SOURCE: Al Jazeera News


    YOU MIGHT ALSO LIKE

    The shocking story of Israel's disappeared babies

    The shocking story of Israel's disappeared babies

    New information has come to light about thousands of mostly Yemeni children believed to have been abducted in the 1950s.

    Stories from the sex trade

    Stories from the sex trade

    Dutch sex workers, pimps and johns share their stories.

    Inside the world of India's booming fertility industry

    Inside the world of India's booming fertility industry

    As the stigma associated with being childless persists, some elderly women in India risk it all to become mothers.