Columbia International Affairs Online
CIAO DATE: 12/5/2007
Rethinking Economic Reform in Jordan: Confronting Socioeconomic Realities
July 2007
Carnegie Endowment for International Peace
Abstract
Since 1989, Jordan has passed through several phases of economic reform aimed at stabilizing the economy and managing the transition from a state-dominated model to one that is private export led. Initiated under severe economic crisis conditions, the reform process in Jordan has been slow, selective, and uncoordinated. Thus far Jordan has succeeded in stabilizing its economy and engaging in a process of trade and financial liberalization and privatization, but it has failed to find long-lasting solutions to major social and economic challenges facing the country.
Jordan has strong though not fully democratic political institutions, effective security forces, and a high level of political support from the international community. These factors have helped minimize external threats to Jordan’s social and political stability. Remittances from Jordanian expatriates and foreign aid, especially from the United States, have also helped Jordan ease social and economic pressures in the country and postpone engaging in deep economic reform.
