CNN’s John Defterios interviewed King Abdullah of Jordan today in Amman. The King talked about a range of subjects, including his country’s economy, the need for investment in youth, and the challenges the region faces from the extremists of ISIS.
Full transcript
John Defterios, CNN Emerging Markets Editor
So, first off, Your Majesty, I would like to talk about the economic re-launch. You’ve laid out a very clear economic re-launch blueprint here that is looking to take growth of just over 3% in 2014 to a baseline to just over five, but a high-target of 7.5%, in 10-years’ time. What makes you think you can deliver those sort of numbers?
His Majesty King Abdullah II
Before the international financial crisis, a couple of years ago, we were at 7%, so getting back to 7% is actually, I think, doable; and, as you said, we are at three at the moment. We hope to be at four next year, and get ourselves back up to seven.
John Defterios
In fact, you’ve put forward a buffet for foreign direct investment of up to $20 billion over five years and I went back five years and your foreign direct investment is just below $9 billion. You’re suggesting almost a doubling-up of foreign direct investment. How do you do that?
His Majesty King Abdullah II
We have learned lessons because of the regional turmoil. A lot of it is going into alternative energy, which is going to make Jordan into a powerhouse. We are gifted with 300 days of the year with beautiful sunshine; and because we are an energy-importing country, renewables are going to be very important. So there is a major leap in renewable energy in Jordan. And we are targeting to be an exporter of renewable energies to Europe and beyond, hopefully, at a later stage.
John Defterios
You have this very difficult challenge: About a third of the young-aged Jordanians who could be working right now are without a job. It is a similar tale throughout the Middle East and North Africa.
His Majesty King Abdullah II
Throughout the world actually. I think that is the major challenge that we all have − you know, the youth. But as you’ve pointed out, in the Middle East, the largest youth cohort in history, we’re talking about 25 million jobs in the next decade. So this is why one of the reason we want to launch this because it is so important for us to get jobs for young people.
John Defterios
Concretely, you want to create 500,000 jobs over five years. Again, it sounds like you are setting the bar very high, but you need to deliver because of this 33% youth unemployment rate. It’s quite painful.
Jordan’s export has been this human talent. And we are the workforce, the talented workforce, throughout the Middle East. That’s always been our niche. So it is not something that we are trying to figure out how to do. It is something that we have always been able to do. But, now, how do we adapt Jordan and our young population to be able to take advantage of that.
We are a young population, tech-savvy, bi-lingual. So, a small country to be able to adapt to the region challenges is something that we have been usually fairly successful in being able to do. So, again, launching this new ten-year economic plan, I think it is actually something doable and within the grasp of Jordanian capabilities.
John Defterios
If I can take a step back. It is extraordinary that we are talking foreign direct investments and international companies coming in, and in the north ISIS took Palmyra, as a line of sight to Damascus. They took Ramadi in Iraq and have a line of sight from Baghdad. Who is going to make a bet on a region that has that much chaos? Did other partners, in particular those in the United States and the Gulf underestimate the threat of ISIS, which you said was enemy number one?
His Majesty King Abdullah II
…for Jordan looking north and east, it is our tactical enemy number one.
We have 1.4 million refugees in Jordan, which is a tremendous burden for our country, but there is also displaced Syrians across our border, fairly safe, fairly stable. And I believe that people should start looking at how do we make that southern Syria area more conducive to a normal life.
John Defterios
If you look at the destruction of Palmyra, it is destruction of heritage. It is almost like the Middle Ages.
His Majesty King Abdullah II
So sad.
John Defterios
And, in fact, destroys the potential for tourism and these heritage sites
His Majesty King Abdullah II
Absolutely. To me it just makes no sense whatsoever, how these people think. I think they have no concept of humanity, of religion, of life; and I think it is just a wake-up call for all of us what this threat is.
