Abdullah swears in cabinet

AMMAN (Reuters) – Jordan’s King Abdullah on Thursday swore in a new government led by a former World Bank economist and mandated to review a disputed tax system after widespread protests against IMF-driven austerity measures.

Abdullah, a relatively secure US ally in a conflict-ridden Middle East, appointed Omar al-Razzaz, a Harvard-educated economist outside the ranks of the traditional political elite, as prime miniser last week.

Razzaz replaces Hani Mulki, a business-friendly politician who was dismissed to defuse public anger that led to triggered some of the largest popular protests in years.

Thousands of Jordanians took to the streets in Amman and in provincial towns earlier this month against a series of tax rises since the start of the year. Protesters called for sacking the government and scrapping a tax bill which unions and civic groups blamed for worsening poverty and unemployment.

Foreign Minister Ayman Safadi and Interior Minister Samir al Mubadeen kept their posts in Razzaz’s 28-member cabinet, dominated by a mix of conservative politicians and Western-leaning technocrats, including seven women.

“The ([economic] challenges we face are the accumulation of decades, in fact... nearly two decades,” Razzaz said, pledging to address sluggish growth and eroding living conditions.

Rajai Muasher, a conservative politician and influential banker and among Jordan’s wealthiest businessmen, was appointed as deputy prime minister.