2012年-世界发展银行全球_Privatization___Lessons_from_Jordan_4页_774kb

MENA Knowledge and Learning: Privatization Lessons from Jordan

Core Content

The document summarizes the experience of Jordan's privatization program from 1998 to 2008, highlighting the benefits and challenges of privatizing state-owned enterprises (SOEs) in the Middle East and North Africa (MENA) region. The program was supported by the U.S. Agency for International Development (USAID) through a technical assistance initiative and resulted in the privatization of 14 SOEs across various sectors such as telecommunications, electricity, air transport, and mining.

Main Points and Key Information

Benefits of Privatization in Jordan

• Fiscal Improvement: Privatizations generated $2.3 billion in sales proceeds, used to reduce GOJ debt from 100% of GDP in 2000 to 60% in 2008.
• Increased Revenue: Privatized firms significantly increased their annual payments (e.g., taxes) to the Treasury.
• Improved Performance: Privatized firms showed major gains in financial performance, productivity, and competitiveness.
• Consumer Gains: Improved services, reduced tariffs, and increased electricity supply were noted.
• Job Creation: While there was a 2% net employment loss, 25,000 new jobs were created in telecommunications and IT sectors.
• Investment Boost: Privatization led to an additional $1 billion in foreign direct investment (FDI), contributing to industrial and service sector development.
• Capital Market Development: The privatization process supported the development of Jordan's capital markets, including the Amman Stock Exchange.

Key Lessons from Jordan’s Privatization Program

• a) Government Commitment: Sustained political will and commitment were essential for the success of the program, even with changes in leadership.
• b) Clear Strategy: Governments should define clear priorities, such as maximizing proceeds, protecting workers, and enhancing competitiveness.
• c) Legal Authority: A strong legal framework is necessary for privatization and PPPs. Jordan’s 2000 Privatization Law provided a solid foundation, though a dedicated PPP Law is still needed.
• d) Centralized Agency: A centralized privatization agency, such as the Executive Privatization Commission (EPC), is critical for building institutional capacity and expertise.
• e) Intra-Governmental Coordination: Coordination among the EPC, ministries, regulators, and capital market institutions was vital for the smooth implementation of privatization.
• f) Qualified External Advisors: Hiring leading international firms with a competitive selection process is essential for complex privatization tasks.
• g) Adequate Preparation: Enterprise restructuring, legal frameworks, and feasibility studies should be completed before privatization to ensure success.
• h) Redundant Labor Management: Careful design of severance and early-retirement packages is necessary to protect workers and avoid involuntary retrenchments.
• i) Sufficient Funding: Governments must plan and secure funding for all aspects of privatization, including restructuring and transaction support.
• j) Avoid Conflicts of Interest: Ensuring transparency and avoiding conflicts of interest among officials, staff, and external advisors is crucial.
• k) Impact Monitoring: Establishing a baseline for performance, employment, fiscal, and competitiveness metrics helps in evaluating the benefits of privatization.
• l) Patience: Privatization and PPP transactions are time-consuming and may face delays due to various factors, requiring long-term support and planning.

Conclusion

Jordan’s privatization program serves as a valuable case study for other MENA countries, offering practical insights on how to design, implement, and monitor privatization initiatives effectively. The program demonstrates that privatization can lead to significant economic and social benefits when executed with clear strategies, legal support, and institutional coordination.