The Executive Privatization Commission of Jordan

COMMUNICATING PRIVATIZATION & ECONOMIC

REFORM

Working group 2 meeting

MENA-OECD Investment Programme

NAZIH BARQAWIBahrain

June 26th , 2007

Background (1)

A Comprehensive opinion survey

“Scepticism about economic reform &

privatisation – no obvious tangible benefits yet”

EPC open and accessible

“Why sell profitable companies?”

“IMF and World Bank dictating to Jordan?”

“Corruption pervades the process”

“More IPOs and employee share participation”

Background (2)

Parliamentary Deputies:

OPPONENTS OF PRIVATISATION

NO ORGANISED OPPOSITION

SOME IDEOLOGICALLY OPPOSED

MOST ON IMPLEMENTATIONAL GROUNDS

Background (3)

Current PR activities:

EXCELLENT PRESS RELATIONS

NEWSLETTER

WEB SITE

BROCHURE

CD & FILM

ANNUAL REPORT FOR 2004

IMPACT STUDY

Background (4)

Perceptions of EPC:

SCEPTICISM ABOUT GOVERNMENT

EPC IS PART OF GOVERNMENT

THEREFORE EPC IS SUSPECT

THEREFORE EPC NEEDS TO WORK DOUBLY HARD TO PROVE ITSELF INNOCENT

What are the contentious issues?

TRANSPARENCY – in place but needs emphasising

VALUATIONS OF COMPANIES

DESTINATION OF PRIVATISATION PROCEEDS

REDUNDANCY

PRICE/TARIFF INCREASES

IPO & EMPLOYEE Share participation

WHY SELL PROFITABLE COMPANIES ?

EXPORT OF PROFITS

STRATEGICALLY IMPORTANT COMPANIES

Action Plan (1)

INTERNAL COMMUNICATION

- Transaction managers and

Communications Manager to meet

regularly to inform each other and

forestall adverse press comment

- More detailed meetings to swap ideas

and practical assistance

Suggested Action Plan (2)

AUDIENCES

General public

Parliamentary Deputies

Privatising companies’ management

Privatising companies’ employees

School & University students

Foreign investors

WHAT ARE OUR MESSAGES?

Jordan economy in need of reform

Therefore economic restructuring necessary

BUT, the State cannot run companies as

efficiently as private enterprise

Privatisation is part of restructuring and reform

process

Privatised, and more efficient, companies are

more competitive, make more money, pay more

taxes, employ more people.

WHAT ARE OUR MESSAGES?

Jordan cannot rely on outside assistance

Restructuring and privatisation is an economic

necessity. This is a Jordanian government decision,

not imposed by IMF/World Bank

Redundancies are not inevitable , but

compensation is generous

Strategic partners can provide cash, technology

and marketing expertise

Suggested Action Plan

HOW WILL WE CONVEY THESE MESSAGES?

The Press – informal background briefings –

educate, inform, answer questions

- briefings on all new privatisations

- contribute press articles

- Q & A column

- Annual informative retreats

HOW WILL WE CONVEY THESE

MESSAGES?

Radio & TV - Documentary film of a complete

privatisation – show on national TV

- Phone-in programmes,

discussion programmes etc

Suggested Action Plan

PRINTED MATERIAL

Privatization Book

Leaflet for employees & others

Leaflet for employees of each privatising company

CONVEYING THE MESSAGE DIRECTLY

Company Management – explanation on announcement of privatisation

Company Employees – explanation by Management/Unions

Parliamentarians – seminar + annual updates

Universities – approach Ministry of Education

Others – Chambers of Commerce, Professional Associations

Suggested Action Plan

FOREIGN POTENTIAL INVESTORS

Embassy Web Sites – link to EPC site

Regional and international press

Promotion Missions

Cooperation with JIB and relevant

Investment Promotion national agencies

Participation in main economic events

Suggested Action Plan

RESOURCES OF EPC PR DEPARTMENT

Increased activities

Need for organisational assistant

Communications Manager can plan strategy

Pro-active initiatives

CONCLUSION

Credibility of Government

EPC affected by this

However, EPC seen as accessible

Internal communication

EPC “selling” privatisation and PPP

Need for optimal budget to empower EPC