Privatisation - Opening the Economy

(A) OBJECTIVES

In its detailed and comprehensive "Jordan Privatisation Note" of December 1995, the World Bank Privatisation Technical Assistance Mission sets out the rationale for, and the objectives of, the Jordanian privatisation program as follows:

(i) to increase private investment in infrastructure;

(ii) to raise enterprise efficiency;

(iii) to develop local capital markets;

(iv) to consolidate the public finances;

(v) to concentrate the government on core activities; and

(vi) to signal government commitment to reform.

(B) INSTITUTIONAL FRAMEWORK

With the abovementioned objectives in mind, the Government of Jordan ("GOJ") has embarked on an ambitious privatisation program to include most public enterprise sectors. The Council of Ministers has recently created a Cabinet Committee on Privatisation with the Prime Minister as its chairman. The Committee, which has as its members the main economic ministers (Finance, Planning, Energy, Industry & Trade,