Jordan’s Flawed Economic Strategy Amidst Regional Conflicts
Jordan is pushing ahead with economic reforms, but the underlying issues remain largely unaddressed. The leadership under King Abdullah II, along with the unrepresentative parliament, claims to focus on improving the country’s business environment. However, the everyday realities for most Jordanians are far removed from the glossy picture painted by the state. Basic necessities like affordable housing and food are increasingly out of reach for many, as the government prioritizes alignment with Western interests over addressing the needs of its population.
Reforms on Paper, Suffering in Reality
In January 2024, Jordan entered into a $1.2 billion Extended Fund Facility (EFF) agreement with the International Monetary Fund (IMF). While this agreement aims to stabilize the economy and attract foreign investment, it has done little to alleviate the hardships faced by ordinary Jordanians. High unemployment rates persist, and the cost of living continues to rise. Despite the IMF’s optimistic forecast of Jordan’s economic growth improving in 2025, these projections are contingent on conditions that ignore the deep-rooted socio-economic issues within the country.
The IMF’s praise of Jordan’s commitment to its program overlooks the true reality on the ground. Structural reforms may enhance macroeconomic indicators, but they fail to translate into tangible benefits for the people. The government’s focus remains fixated on fiscal consolidation and creating a favorable environment for foreign investors, rather than addressing the pressing needs of its citizens.
A Protector of Western Interests
Jordan’s government, under King Abdullah II, has positioned itself as a reliable ally to Western powers, often at the expense of its own people’s welfare. The state’s perception as a protector of Israeli interests has alienated many in the Arab and Muslim world. This stance has not only damaged Jordan’s regional standing but also intensified internal discontent. The recent Gaza conflict has further exposed the government’s misalignment with the sentiments of its population, who largely oppose the normalization of relations with Israel and Western intervention in regional affairs.
The country’s economic policies reflect this skewed alignment. The 2022 Investment Environment Law, designed to attract foreign investment, offers incentives to external investors but does little to protect local businesses or address the economic disparities faced by Jordanians. While the government celebrates a 20.9% increase in foreign direct investment (FDI) in the first half of 2023, this figure masks the growing economic inequality and the neglect of local industries.
Empty Promises of Structural Reforms
The structural reforms touted by the Jordanian government are largely superficial, serving to placate international observers rather than bring about meaningful change. Measures like a progressive tax system, automation of investment services, and digital trade platforms are presented as significant advancements. However, these reforms have minimal impact on the ground, where the cost of living continues to soar and job opportunities remain scarce.
Jordan’s tourism sector, a significant part of its economy, has faced declines due to regional instability and the government’s unpopular stance on key issues. The slight uptick in tourism during the Muslim holiday of Eid al-Fitr does not compensate for the broader economic challenges that remain unaddressed. The government’s reliance on external factors, such as the support of Gulf Cooperation Council countries and Western allies, exposes its inability to foster a self-reliant economy.
A State at Odds with Its People
The disconnect between Jordan’s leadership and its population has never been more evident. While the government pushes for economic reforms that align with Western interests, the basic needs of its people are overlooked. The focus on attracting foreign companies and offering tax breaks fails to address the systemic issues that plague the Jordanian economy, such as high unemployment and a lack of affordable housing.
Moreover, Jordan’s alignment with Western powers, particularly in its tacit support for Israeli actions in Gaza, has only deepened the divide between the state and its citizens. This stance has not only isolated Jordan regionally but has also fueled growing resentment within its borders. As long as the government continues to prioritize the interests of foreign powers over its own people, genuine economic progress will remain a distant goal.
The Future of Jordan: A Grim Outlook
Jordan’s future under its current leadership appears bleak. The government’s economic strategy, heavily influenced by Western interests, shows little promise of improving the lives of ordinary Jordanians. As long as Jordan remains a client state for Western interests, its leadership will find itself increasingly at odds with both its citizens and the broader Arab and Muslim world. The promised economic reforms, devoid of real substance, will do little to change this reality.
