The Head of State’s Economic Compass

The
Speech from the Throne, delivered by His Majesty King Abdullah II last Monday
at the opening of the third ordinary session of the 20th Parliament, provides a
clear foundation for an economic approach that should guide the work of
governments.

Under
this approach, development is measured by the improvement’s citizens experience
in their living standards, opportunities, education, healthcare and their
children’s future. This understanding places a direct responsibility on public
institutions to translate economic objectives into tangible social outcomes and
to enable citizens to discuss policies and assess their effects from this
perspective.

This
approach regards people as the ultimate purpose of economic activity. Growth,
investment, increased production and stronger public finances are essential to
expanding the capacities of the state and society. Their full value is realised
when they improve people’s lives. Assessing government performance therefore
requires examining the gap between improvements in macroeconomic indicators and
improvements in the circumstances of individuals and households and
understanding why the benefits of progress reach some groups and regions faster
than others.

This
gap is shaped by policies themselves, the sectors that grow, the quality of the
jobs they create, wage levels, the fairness of the tax system, and the
effectiveness of public services and social protection. Ensuring that the
benefits of growth reach society requires deliberate policy choices and
institutions capable of implementing them. Fairness in the distribution of
opportunities and benefits thus becomes part of economic policy design from the
outset, and a criterion for judging its success.

Placing
citizens’ interests at the heart of decision-making requires moving beyond
treating them as a “statistical average”. A decision may appear to impose only
a modest cost when measured against average income yet consume a substantial
share of the income of low-wage households.

On
this basis, impact assessment should begin before a decision is taken. The
government should identify the problem it seeks to address, the groups
concerned, the expected outcomes, the costs and the alternatives, then publish
indicators that can be reviewed after implementation. In the labour market, for
example, these indicators should include job stability, wages and workers’
social protection coverage. For public services, they should include quality,
the cost of access and waiting times. Measurement would then become a means of
correcting and improving policies.

This
royal approach also gives more precise meaning to the call to accelerate
economic modernisation projects. Speed is needed to reduce the costs of delay
and respond to pressing needs. It must be accompanied by clear public benefits,
efficient spending and the project’s capacity to support local production and
employment.

The
same spirit applies to the economic and social legislation currently being
amended, including the Social Security Law, the Labour Law, the Societies Law
and others. Any legislation that redistributes rights, obligations or
opportunities deserves to be debated on the basis of its expected effects on
people, their lives and institutions.

Limited
resources may impose difficult trade-offs, and sustainability may require
decisions that do not deliver immediate gains for everyone. This underscores
the importance of disclosing costs, distributing them fairly and protecting
those least able to bear them. Trust grows when citizens understand the reasons
behind a decision, see that alternatives have been examined, and know that the
sacrifices required are matched by clear accountability for results.

The
economic philosophy at the heart of the royal address is therefore closely
linked to its affirmation of the right to debate public affairs. Freedom to
discuss economic and social choices is essential to improving them and
revealing effects that official assessments may overlook. The public space must
allow room for dissent, criticism and alternative proposals, without
unjustified restrictions or sensitivities that obstruct dialogue.

The
head of state’s economic compass sets a clear test for the government, what has
changed in people’s lives as a result of its decisions? A convincing answer
requires measurable impact and citizens who can freely debate those decisions
and help correct their course.