2023-12-10 10:49:54
Main economic affairs
December 10, 2023
– Negative effects are beginning to be reflected in our economy and national employment
– Thousands of employees and local investors pay the price of the “negative boycott.”
– Brands that have been around for decades and have contributed to economic growth and reducing unemployment rates
There are those who exploit the state of solidarity by distorting the image of fair competition
The boycott’s goal is to influence the aggression countries, not our national economy
Watan Al-Youm: Since the war on Gaza began, voices began calling for a boycott of products and brands without caring that this boycott would threaten “the future of the Jordanian labor market” due to the random and ill-considered boycott, given that these companies or brands are Jordanian-owned and employ thousands of Jordanian workers.
Until now, there is no accurate information that clarifies and gives percentages about the benefits or profits earned by the parent companies, as a large percentage of “Jordanian companies” obtained the privilege of these names and used the trademark independently of their connection to the parent company, and the evidence is that their management, ownership, and employment are “one hundred percent” Jordanian. .
Economic experts confirm that the boycott operations have gone out of their correct direction and have begun to take a dangerous turn based on settling scores between competitors in the market at the expense of Jordanian labor and the sectors that support them, which will reflect on the national economy if the boycott operations, specifically those that are not studied, do not stop.
Economic expert Hossam Ayesh said that there is no doubt that we are talking about the boycott in the strategic sense, as most Jordanians are almost unanimous in one position towards this Israeli aggression against Gaza, and they express this through their possible means, perhaps foremost among which is boycotting the products of goods of subsidiaries of either countries that support the aggression or affiliated companies and institutions. The parent companies located in those countries expressed their support for this brutal aggression.
Ayesh pointed out that we must distinguish between a boycott that aims to have a real economic impact with regard to the business results of these companies, institutions, service chains, restaurants, cafés, food and beverages, fashion…etc., and its impact on their market value leads to a decrease in the market value of up to at least $12 billion. In the first month and a half of the attacks.
Ayesh pointed out that the goal of the boycott is the economic impact on the countries of aggression and not the negative economic impact on Jordan. Therefore, there is a new form of the boycott, which lies in the manipulation of the boycott and the random boycott, as it is called, which is an attempt by grocery companies, institutions, etc., to direct the boycotters to stop buying their needs of food. Competitors and turning to it by suggesting that what they have are national, Arab or international products that are not boycotted, and that the competing parties have products from countries that support the aggression.
Ayesh pointed out that this matter is contrary to commercial customs and falls within the scope of manipulation, fraud and deception, and therefore we must confront it with all that is within our legal ability and consumer awareness, because it is not permissible to deviate the boycott from its goals, firstly, and secondly, that we do not make the boycott like someone shooting themselves in the foot, and the result is that We boycott national institutions and companies only because the competitor wants to direct this boycott to his own interests and not related to the idea and goal of the boycott, which in fact causes the layoff of workers. An increase in unemployment rates. An increase in institutions, companies and shops that are affected by the result of a boycott that is not real, but rather impressionistic or random, or there is no evidence of it. What is promoted is the sale of goods or services from countries that support the aggression against Gaza.
Ayesh added that, in fact, we have started with data for the first three quarters of the current year regarding unemployment, despite the good economic performance and despite achieving the highest tourism revenue for the first nine months of the year compared to even the entire year of 2019, and despite the fact that growth in the first half was 2.7 and for the first quarter was 2. 8%, but the result was that there was an increase in unemployment to 22.3%. This means that the market was not able, in the case of economic activity, to provide job opportunities. Rather, the results were negative now, with the decrease in spending and with the decline in people’s desire to spend on different economic and commercial sectors and their focus on Basic needs and perhaps to preserve liquidity. This means that the random boycott, in addition to other forms of boycott, we cannot deny that it has an impact on increasing the number of people exiting the labor market, and therefore we expect unemployment rates to be higher in the fourth quarter than in the third quarter.
Economic and financial expert Ziad Al-Rafati said that the local markets are witnessing a decline in demand for goods and products, which has been reflected in the sales of companies and commercial institutions and consumption levels, supported by the impact of consumer morale by current events and the generalization of the boycott of foreign products and branches of restaurants and cafes, which has affected liquidity, daily cash flows and the ability to pay their obligations. Operational performance, local employment, employment opportunities and salary payments.
Al-Rafati pointed out that it can be remedied by replacing the operating foreign trade names for which the parent company, which has explicitly published its material and moral support for the aggression, uses fees for using the trade name or what are known as franchise rights with local or Arab names while continuing to sell and market the product or service, as the replacement will not affect On the continuity of work and the demand of customers for the product and service as long as the business strategy, quality, price, taste and good service provision are not affected and the provision of franchise fees.
Al-Rafati stated that despite the negative effects of the boycott, it has aspects represented in creating an opportunity for the local industry to develop, promote and spread its products and competitiveness on a wider scale, increasing the market share, which is the largest employer of labor, and stimulating expansionary or new industrial investments.
Replacing foreign products with local products, enhancing national exports, and searching for new markets contribute to increasing productivity, economic growth, motivation for employment, reducing the deficit in the trade balance with the outside world, improving the balance of payments, enhancing foreign reserves, food, agricultural and pharmaceutical security, self-reliance, and developing and diversifying sustainable government revenues in a manner consistent with With a vision of economic modernization.
Economic and financial expert Wajdi Makhamra said that opinions varied on the issue of boycott in light of the negative general feeling that prevailed among citizens as a result of the events in Gaza and in light of the trends that prevailed that some international companies support the Israeli occupation in its assault on Gaza, which resulted in boycotts of some international brands, of which it is a part. Jordanian investors, and a large portion of these investments were Jordanian, employed Jordanian workers, and had auxiliary sectors that contributed to them from Jordanian sectors that contribute to a large portion of production operations, especially the food industries sector, and a large portion of the materials came from local industries and local support industries.
Makhamra added that if there is a difference in opinions on the issue of the boycott, the boycott is part of the influence on these international brands that support the occupation from an economic and profit standpoint, and there was a part that opposes the issue of the boycott because it is Jordanian investment, Jordanian capital, Jordanian employees, and Jordanian support sectors. Therefore, this boycott will have a negative impact. These sectors may have a negative impact on economic growth because a large part of economic growth is supported by local consumption of some products, including the food industry sectors and sectors that rely on international brands.
He pointed out that this disparity of opinions was part of the negative feeling that prevailed among the Jordanian people and the influence of some of these international brands in supporting the occupation. The boycott is still continuing and therefore this may negatively affect the increase in unemployment rates because a large portion of the workers in these sectors are students who finance Their studies are affected by this work, and part of them spends on their families. This boycott, if it continues, will have a negative impact on economic growth and a negative impact on all sectors that help these international brands present in Jordan. The best approach is for there to be no boycott and a percentage of these companies’ sales. He went to support Gaza in terms of medical supplies and food supplies, which will likely help the Strip more than the boycott
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