Sixth Quarterly Report, February - April 2011 - Eng - Frp2.org

USAID Jordan Fiscal Reform II Project
that observe the interrelationships within different variables of each sector and between the various
sectors of the model. The theoretical underpinnings of the model originate from the Keynesian
income-expenditure approach, and the model is empirically designed to strike an optimal balance
between simplicity and comprehensiveness. It avoids arbitrary interventions such as the extensive
use of dummies and add-factors, and observes the standard assumptions of ordinary least squares,
such as exogeneity, no linear dependence, spherical errors and normality. The model is capable of
forecasting future trends and producing forecasts of the main macroeconomic and fiscal aggregates
of Jordan‟s economy, exploring the consequences of policy scenarios and/or external shocks to the
economy that, in turn, provide the major ingredient for future policy papers and the Ministry of
Finance‟s medium term fiscal framework.
FRP II gathered members of the private sector, and representatives from Jordan Customs and a
number of government agencies present at Jordan‟s border centers to unveil and discuss the results
of the Golden List Survey. The Golden List, an authorized economic operator program, provides, in
theory, preferential treatment to companies on the list who have met particular criteria and proven
themselves trustworthy, compliant traders. According to the survey, the Golden List requires some
modifications to incentivize traders to be voluntarily compliant. Following presentation of the
findings, the organizers opened the floor to questions and feedback from participants. Lively
discussion and debate resulted in a detailed list of recommendations from current and prospective
Golden List members, focusing on options for improving the program and making it more attractive
to the trading community.
Major recommendations included:
Integrating Jordan Standards and Metrology Organization and Food and Drug Administration‟s
respective Golden List procedures with those of Jordan Customs to eliminate duplication;
Providing more preferential treatment to Golden List members to incentivize participation;
Better informing Golden List members about pre-clearance procedures to save them time; and
Expanding the Golden List to include all segments of the supply chain.
Jordan Customs has since set to work to develop an action plan for improving the benefits package
offered to Golden List members, and to promote the program to prospective members. According to
officials, Jordan Customs is eager to see as many companies as possible join the Golden List,
indicating that this will both bestow benefits on trusted traders, and free Customs resources to focus
more intensively on those who violate the law.
Under the patronage of His Excellency Minister of Finance, and in the presence of His Excellency
the President of the Audit Bureau and His Excellency the Secretary General of the Ministry of
Finance, FRP II held a workshop on Public Internal Financial Controls. This workshop included the
signing of a Memorandum of Understanding (MOU) between the Ministry of Finance and the Audit
Bureau regarding improving effectiveness of internal financial controls and addressing weaknesses
in the legislative framework. The workshop and MOU mark the beginning of a process to introduce
radically new procedures and processes for application by the Audit Bureau in conducting external
post audit, and to implement new internal financial control policies and procedures in government
units and departments.
As a part of the FRP II‟s growing partnership with the Audit Bureau to develop a performance audit
function, Component Lead Mr. Osama Al-Azzam and International Budget Advisor Dr. Regis
Chapman completed all preparations and arrangements for the Performance Audit Study Tour, and
traveled. FRP II led a study tour to Washington, DC and Richmond, Virginia April 26 – May 6 to
USAID Fiscal Reform II Project, Quarterly Report – February – April 2011 3