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Jordan 2006

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Free trade, political will and the transformation of a country


Ambassador Karim Kawar

By Kevin Lambert

Karim Kawar, Jordan’s ambassador to the United States since September 25, 2002, is a large, friendly man who traveled to his post in an unusual way. Like Chester Bowles, he was not a professional or trained diplomat, but a hugely successful businessman, the first Jordanian non-diplomat to attain such a position. A native of Amman, with a degree from Boston College, Ambassador Kawar set up his first company at the age of 20. He went on to start seven companies in Jordan, especially in the IT field, an industry that he helped launch countrywide. Mr. Kawar aims to promote Jordan as a high-tech center and investment hub in the Middle East. He started on that road in 1999, receiving a royal appointment to the Economic Consultative Council, to advise Jordan’s monarch on economic issues.

Among his other credits, Ambassador Kawar served on the Jordan River Foundation, chaired by Her Majesty Queen Rania.

The foundation empowers women and works to prevent child abuse. He is also an Eisenhower Fellow, having been selected for a program that unites emerging world leaders to create "a network where dialogue, understanding, and collaboration lead to a more prosperous, just, and peaceful world."

A conversation with Ambassador Kawar will naturally draw heavily on the economic realities of the region. "I have been honored to be chosen for this post, and one cannot escape from diplomacy, but I think the idea has been to capitalize on the free trade agreement between Jordan and United States. We want to move from Aid to Trade. What attracted me most was the challenge to make a difference. And the support I have received has allowed me to do that."

"You cannot have trade without diplomacy without the right relationships. Trade will further strengthen relationships between nations, like Europe." Ambassador Kawar describes his job as the "representative of His Majesty’s government. My job is to strengthen the bilateral relations between Jordan and the United States, not only politically but also culturally and economically. We have focused our relations over the past four years to ensure that our relations are always at their best."
Right now, he says, they are "great. King Abdullah II is one of the foremost leaders in the Arab world, he represents the voice of reason in our region."

Jordan is in the middle of a welter of reforms, of every conceivable kind. Political and economic reforms "go hand in hand. His Majesty King Abdullah II ascended in 1999 with a fresh look. If Jordan is to prosper and thrive we need to focus on education and then economic reforms. We have had several initiatives," (The first was the Economic Consultative Council that he himself chaired) and the most recent was the national agenda, which is still being implemented. This is a home grown ten year, ten point manifesto encompassing such reforms as investment development, social welfare, the independence of the judiciary and the role of women." Being a relatively poor Gulf state, they have to try harder. "We have no oil but we have the political will."

Jordan is not an oil producing state of any consequence, but true to traditional Arab hospitality, over a million Palestinian refugees from Palestine, and hundreds of thousands from Iraq have found a safe haven there, and the government is making no moves to send them back. "All refugees, of course, are a burden on our resources, but Jordan has always shouldered the burdens of our neighboring states. By Arab and Jordanian tradition, we always welcome strangers." And in this case, "we recognize the pressure that they’re under."

Even with the influx of refugees draining resources and no oil money to replenish them, Jordan’s economy grew by 7.7% last year, well above the generally expected rate. Ambassador Kawar, an unabashed free market champion, credits, among other things, the massive privatization that has been taking place since the early '90s.

"When His Majesty King Abdullah II ascended the throne he turned to the private sector and said, ‘What can we do to transform the country? We said we need to accede to WTO, and we need a free trade agreement with US. That entailed liberalizing a lot of our government-owned companies, which was a great success, especially in telecommunications." Indeed, the subscriber market increased tenfold in five years. "When Bahrain wanted to liberalize their sector, they did not draw on the FCC, which would have been overkill. They took the Jordanian example."

Jordan sees itself as a springboard for companies who want to trade in the region, and Ambassador Kawar is doing all he can to promote that idea. As one of the safest and reasonable places to work, an incoming company can feel a far greater sense of security than in other countries. Once the water is tested, the forces of commerce will go into action, and people in neighboring countries, bound by the same forces, will hear of the presence and send out their own feelers. This could have immense consequences in a region projected to have 600 million consumers by 2020.

Jordan has established the Akwara Free trade zone, which will have several advantages over your everyday free trade zone. It will be located in a hub of shipping and air transport, and the setting itself, unlike the normal ex-bean fields that so many free trade zones end up in, is in fact a tourist center. A beautiful port city with all the amenities, it boasts competence, infrastructure and a worthwhile lifestyle. "It is quite tempting. Aqaba is a multi-modal hub, and has developed into a logistical center. But since it is our only access to the Red Sea we have seen a thriving tourist industry as well." It is also a key port for the reconstruction of Iraq, in which Jordanian companies are playing a large part. "Our structure and technology allow businesses to cut through red tape and to establish their firms in record time. The idea is that you are there to serve those businesses to get them running quickly and that their operations are successful."

Other countries have followed the Jordanian model. "We have always been instructed by His Majesty King Abdullah II to share our experience with the whole region. Many countries in the region have drawn on Jordan’s experience. Jordan has been a model in intellectual property, when the World Intellectual Property Organization (WIPO) goes around the region, they refer to Jordan as the model." His Majesty King Abdullah II subscribes to John F. Kennedy’s notion that "if you raise the level in the water, all the boats will rise. Jordan today can only develop so much on its own in the region without the whole region moving forward." Another Jordanian first is the Jordan Education Initiative, which has been adapted by Bahrain Egypt and India and the Palestinian territories. Jordan is trying to show the other countries in the region – and their high GDP growth helps to get this across – that the Jordanian model could be successfully adapted by all.

Asked if he sees the ascendancy of a moderate Arab bloc as the wave of the future, Ambassador Kawar nods. "First and foremost, when you ask the people of our region, their first priority is their economic well-being. They want better lives and those better lives come through better jobs and better pay. Where there is no hope, people turn to extremes. In Jordan the extremists, luckily, are only a very small minority within our society."

Karim Kawar is a man who may be remembered as one who helped clear out the underbrush of the region’s sleepy economy and opened the way for a style of life that could benefit millions and inch the world along to peace. And he will do it through his love of his country. "Jordan," Ambassador Kawar says, "holds a promise for the region. It is a country nation and a people to invest in. Jordan provides hope for the region as a whole, and it is worthwhile considering for those who want to see beyond the regions."


SPONSORS

Arab Bank
Ayla
Sky Real Estate Investment Co.
AQABA development Corporation
GreenLand/KURDI Group
KADDB
Mawared Real Estate
Jordan Dubai Capital
MobileCom
TEAM
International Projects Director
Ambassador (ret.) Michael Ussery
Country Manager
Issa Matalka
Senior Writer
John Rosenberg
Deputy Director/Jordan
Balsam Maayah
Economic/Commercial Adviser
Dr.Hassan Al Barmawi
Project Assistant
Sharleen Sawalha

 

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