Survey of initial prospects for privatization in the Hashemite Kingdom of Jordan

consultant team visited Jordan to assess prospects for privatization. The team found that the Government of Jordan is committed to privatization and that considerable work has been done in preparation. Legal impediments are being dealt with by new legislation, and there is both a willingness to accept a degree of foreign ownership and an awareness of the advantages of freeing public enterprises from civil service regulations (e.g., rigid salary structure) and the tendency toward excess personnel. Although falling oil prices have restricted the availability of investment capital and lowered potential earnings from sales of shares, much can be done without waiting for economic recovery. Prime candidates for privatization are the Royal Jordanian Airline, the Public Transportation Corporation, and the Telecommunications Corporation. It is recommended that a small, high-level ministerial divestiture unit be established to direct the privatization process and that A.I.D. finance additional studies and technical advisory services to support privatization of the above-named enterprises. (Author abstract, modified)