The Road to privatization. (c2001)

Abstract

This is a study on one of the liberalization policies, namely privatization, followed almost all over the world. It specifically focuses on the Hashemite Kingdom of Jordan, as a case study, in examining the privatization policies that were implemented during the last ten years. In the first chapter, I study the phenomenon of privatization as a whole, and its incentives. In chapter two, I concentrate on the process of privatization in the Middle East. Previously, the state in this region played a major role as a business administrator. With time, the state discovered its incompetence in handling economic activities, and turned to the private sector for cooperation. It was then, that privatization was introduced as means for the state to transfer its efforts and resources to core government issues. A privatization strategy had to be developed, first by setting the objectives, realizing the obstacles, and then deciding on the approach that best suits the country characteristics. In chapters three and four, I presented my case study: Jordan. I started with basic information about the country since its formation. I carefully studied a" the phases the country passed through, until it reached its current privatization program. In addition, I examined the external support that Jordan received, a" the legal reforms that occurred, and the labor issue. I included in a separate chapter, namely chapter five, all the privatization transactions that have already taken place in Jordan. Also, a few examples of some unfinished transactions that are expected to be completed in the coming two years. After studying the privatization plans that Jordan is proceeding with, I tried to analyze them. I attempted to discover why Jordan needs to privatize, what was behind the successful completed transactions, and what other ingredients Jordan needs to include in its privatization plans, in order to get positive results on the long run. I searched for the results that are already available, since usually the results of privatization need time to materialize and become noticeable. In light of these findings, my conclusion addressed first, the future prospects for Jordan, if it proceeded on the right track. Second, the issues that Jordan needs to put more effort in, especially promoting peace in the region, due to its vulnerability to external and regional influences. A small country such as Jordan, has to establish itself we" on the international scene, in order to gain and prosper.