Jordan’s new PM will have to meet the challenges that led to Mulki quitting
When King Abdullah II accepted Hani Mulki’s resignation yesterday it was a stunning turnaround for the former prime minister, who had introduced austerity measures, including taxes, fuel price rises and subsidy cuts since January with little public opposition.
The protests were eventually triggered by an income tax law introduced by the government on Thursday, which would have broadened the base and increased taxes on businesses and corporations.
Yesterday was not the first time that a Jordanian prime minister resigned during popular protests.
In the Arab uprisings of 2011, when protests for reform shook the kingdom, premiers Samir Rifai and Marouf Bakhit both resigned after pressure from the people.
But the recent protests, which have shaken the kingdom every night since Thursday, had more people protesting in more cities than in 2011.
Tens of thousands of Jordanians have been taking part in demonstrations in every province and major town. Security sources claim there were more than 60 protests on Sunday alone.
There has been a festival-like atmosphere at the prime minister’s building at the heart of Amman, where thousands of young people, families and couples have gathered each night to demand the repeal of the income tax and other austerity measures. Many of them stayed until sunrise.
Having seen a revolving door of prime ministers and previous reform efforts stall, activists this time have vowed to stay in the streets or return to them in force if their goals are not met.
The movement shared posts on Facebook and other social media platforms, pledging to continue protests last night, and repeating the slogan: “a change in personnel does not mean a change in policies”.
Many are calling for the income tax law to be repealed, the country’s parliament to be dissolved, the overturn of recent taxes on goods, or a combination of all three, as the conditions for stopping their demonstrations.
Jordan’s professional associations, which led public action with a general strike last week, said a second planned general strike tomorrow would proceed as planned unless the income tax law was withdrawn.
“Seeing Mulki go was a step in the right direction but we have to get rid of the income tax law and overturn these taxes,” said protester Abdullah Mohammed, 29, an Amman taxi driver and father of two.
Mr Mohammed, along with dozens of taxi drivers, shop owners, waiters and others who normally have peak business at night during Ramadan, say demand is so low in the kingdom this year because of the economic situation that they would rather protest than accumulate losses.
“We are not here because we want to be, we are here because we can no longer make ends meet,” he said.
“We need the government to take emergency measures to allow us to earn a living again.”
Others have started to call for a task force to look into alleged corruption by public officials.
Analysts and officials agree that incoming Prime Minister Dr Omar Al Razzaz will have few easy options and many hurdles to clear. Unemployment in Jordan has reached 18.4 per cent, rising to about 30 per cent among the country’s youth.
The budget deficit is US$750 million (Dh2.75 billion) for this year, and that is after Jordan received hundreds of millions of dollars in foreign aid.
Jordan is still online for the $723m credit line from the International Monetary Fund, which requires the country to take steps to reduce its public debt from 95 per cent to 77 per cent by 2021. The country’s public sector employs more than 55 per cent of the population, taking up a large part of the budget.
Even activists are split on Dr Al Razzaz’s economic acumen. While some welcome a premier with an economic background, others criticise his World Bank credentials.
“We want to liberate Jordan from the World Bank and IMF control. Why did they put a former World Bank employee as head of the government?” asked protester Noor Ibrahim, 26.
Government officials who have worked with Dr Al Razzaz have praised his communication skills, willingness to listen, affability and ability to involve others into the decision-making process.
For Jordan to stem even larger protests and quell frustration in the streets, observers say his ability to involve disaffected young Jordanians will be as important as his economic policies.
“Dr Razzaz’s first priority should be to regain the confidence of the people and work in co-ordination with other institutions in the country such as the parliament, civil society – and most importantly these young Jordanians,” says Nabil Sharif, a Jordanian political analyst and former minister.
Yet while the new government takes shape and prepares to respond to protesters’ demands, analysts say it is the end of business as usual for Jordanian governments.
“The Jordanian people have finally discovered their power and that they can change things on the ground,” Mr Sharif said.
“This is a new reality that the government must not only accept, but adapt to.”