Jordan - National US-Arab Chamber of Commerce

continued from previous pageIn October 1999, Kawar and his colleagues in theJordan Computer Society sent a report to H.M. KingAbdullah II outlining an ambitious strategic planthat would turn Jordan into a regional ICT leaderand internationally recognized exporter of ICTproducts and services. Within five years, the reportnoted, the fruits of the REACH Initiativewould create 30,000 new jobs,attract $150 million in foreign directinvestment, and generate $550 millionin annual IT exports.Today, five years after the launch ofREACH, it is clear that the program hasnot hit all of its targets – in part becauseof recessions in the global ICT market, aswell as violence in the Middle East. Butthe REACH Initiative has accomplishedsomething that no one thought possible in the 1990s: Ithas developed an internationally competitive IT industryin Jordan – one that attracts foreign and local investment,generates high-value jobs, modernizes the nation’s publicand private sectors, and positions Jordan favorably in theworld’s increasingly important knowledge-basedeconomy.The REACH Initiative has also fostered unprecedentedlevels of cooperation between Jordan’s governmentand the business community. According to REACH4.0, the most recent report prepared by the InformationTechnology Association of Jordan (Int@j), “Public-privatepartnerships in Jordan have never been stronger or moredynamic, with the Ministry of Informationand Communications Technology(MoICT) working side by side withJordan’s IT industry association.”As a result, according to this samereport, “REACH is now part of a trulynational initiative for achieving e-readinessand beyond. The momentum thatthe launch of REACH first sparked hasinspired a host of new initiatives designedto employ technology as a tool forbridging the digital divide and enhancing the lives ofall Jordanians.”For more information about the REACH Initiative,check out its Web site at www.reach.jo. Ofparticular interest is the 2004 REACH 4.0 report,“An Updated Strategy and Action Plan for H.M.King Abdullah II.” ✦Jordan has “seta precedent forchange in theMiddle East region.It has demonstratedthe achievementsthat can result fromstrong cooperationbetween the publicand private sectors,particularly in thefield of informationand communicationstechnology (ICT).”Craig BarrettPresident & CEO ofIntel CorporationThe REACH Initiative: Why It Has Flourished in JordanJordan is on the cutting edge of ICT developmentin the Arab world. The centerpiece of this effort isthe REACH Initiative, which has become a worldclassprogram thanks to Jordan’s visionary leadershipand a remarkable partnership between that nation’spublic and private sectors.Five years ago, the founders of REACH pinpointedthe importance of developing a home-grown ICTindustry in these terms:“Rapid growth and accelerating innovation –central characteristics of the ICT industry – offerenormous opportunities. As with the IndustrialRevolution before, the timing, positioning and actionsof nations will determine those who will benefit fromthis Knowledge Revolution, and those who will beleft behind. It creates a great sense of urgency, sincedelay will lead to incalculable opportunity costs,making catching-up ever more difficult.”The REACH Initiative, supported by USAID’sAchievement of Market-Friendly Initiatives and Results(AMIR) Program, is a comprehensive framework thatembraces actions in terms of:Regulatory FrameworkEnabling Environment (Infrastructure)Advancement ProgramsCapital & FinanceHuman Resource DevelopmentJordan is uniquely qualified to excel in Informationand Communications Technologies for a varietyof reasons:Jordan’s favorable location and position in theregional market. Its talented workforce, bilingualArabic/English language capabilities, extensiverelationships in the region, and time-zone localadvantages, favorably position Jordan with respect topotential competitors.Human-resource intensity. Software and ITservices require skilled human capital. Jordan’s welleducatedworkforce provides a comparative advantagefor these activities. Students are enrolling in computerrelateddisciplines in record numbers, and there is anatural inclination and enthusiasm for developingIT skills that owes much to the country’s relativelyopen intellectual environment.Lack of distance or transportation constraints.Unlike manufacturing and tourism, which are affectedby transportation mechanisms, software services area “distance-less” industry. Its inputs and outputs aretransmitted electronically, and there is relatively littlefluctuation when it comes to disruptive externaldevelopments.Low start-up capital requirements. This makesit easier and less risky for market entry by Jordanianfirms, particularly small and medium-sized enterprises(SMEs). ✦“As with theIndustrial Revolutionbefore, the timing,positioning andactions of nationswill determinethose who willbenefit fromthis KnowledgeRevolution”REACH InitiativeNovember/ December 2004 • US-Arab Tradeline9