World Bank2013-02-122013-02-122012-06https://hdl.handle.net/10986/12328Jordan's quest for long-term, inclusive and sustainable growth has remained largely elusive. By the Growth and Development Commission's measure of success, namely, an average growth rate of 7 percent over 30 years, Jordan's growth record cannot be dubbed 'successful'. This Development Policy Review (DPR) shows that sustaining growth and reducing unemployment is possible: Jordan has a strong human capital base, a large endowment in engineers, doctors, accountants, Information Technology (IT) specialists and a substantial highly-skilled diaspora (500,000 educated Jordanians abroad, 8 percent of the population). Furthermore, the market-oriented reforms of the early 2000s have made Jordan one of the most open economies in the Middle East and North Africa Region and have led to the emergence of dynamic non-traditional sectors (e.g., information and communication technologies, health tourism and business services). What is missing are: (i) an adequate and stable institutional framework for policymaking and long-term business development; (ii) good fiscal policies to manage shocks and maintain macroeconomic stability; good institutions and macroeconomic stability were identified by the growth commission as two of the five common characteristics of successful growth experiences; and (iii) further growth-enhancing structural reforms.en-USCC BY 3.0 IGOACCESS TO INFORMATIONACCOUNTINGAGGREGATE EMPLOYMENTAGRICULTUREBENCHMARKBENCHMARKINGBINDING CONSTRAINTSBORROWINGBUSINESS DEVELOPMENTBUSINESS ENVIRONMENTBUSINESS REGULATIONSCAPITAL ACCOUNTCAPITAL ACCUMULATIONCAPITAL FORMATIONCAPITAL INFLOWSCAPITAL INVESTMENTCENTRAL BANKCENTRAL BANKSCOLLATERALCOMMUNICATION TECHNOLOGIESCOMMUNICATION TECHNOLOGYCOMPARATIVE ADVANTAGECOMPETITIONSCOMPETITIVE MARKETSCREATING JOBSCREATIVE DESTRUCTIONDEBTDECENTRALIZATIONDEVELOPED COUNTRIESDEVELOPMENT POLICYDOWNSIDE RISKSDRIVERSECONOMIC ACTIVITYECONOMIC COOPERATIONECONOMIC GROWTHECONOMIC PERFORMANCEECONOMIC POLICIESECONOMIC REFORMECONOMIC REFORMSECONOMIC SECTORSELASTICITYEMERGING MARKETSEMPLOYMENT GROWTHEMPLOYMENT SHAREEMPLOYMENT ­ ALTERNATIVEEXCHANGE RATEEXOGENOUS SHOCKSEXPENDITURESEXPORT GROWTHEXPORTSEXTERNALITIESFACTOR MARKETSFERTILITY RATESFINANCIAL CRISISFINANCIAL INTEGRATIONFINANCIAL SECTORFINANCIAL SERVICESFISCAL CONSOLIDATIONFISCAL DEFICITFISCAL POLICIESFISCAL POLICYFISHINGFIXED CAPITALFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN INVESTMENTSFOREIGN LABORFOREIGN MARKETSFOREIGN WORKERSFREE TRADEFREE TRADE AGREEMENTGDPGDP PER CAPITAGLOBAL ECONOMYGLOBAL MARKETSGROSS DOMESTIC PRODUCTGROSS FIXED CAPITAL FORMATIONGROWTH POLICIESGROWTH POTENTIALGROWTH RATEGROWTH RATESHIGH EMPLOYMENTHUMAN CAPITALHUMAN RESOURCEHUMAN RIGHTINCOMEINCOME GROUPSINFRASTRUCTURE DEVELOPMENTINNOVATIONINTERNATIONAL COMPETITIONINTERNATIONAL COOPERATIONINTERNATIONAL MARKETSINVESTMENT CLIMATEINVESTMENT CLIMATE REFORMSINVESTOR CONFIDENCEJOB CREATIONJOB SEEKERSJOINT VENTURESLABOR FORCELABOR FORCE GROWTHLABOR MARKETLABOR PRODUCTIVITYLABOR SUPPLYLABOR SURVEYSLOW EMPLOYMENTLOW TARIFFSLOW-INCOME COUNTRIESMACROECONOMIC EFFECTSMACROECONOMIC MANAGEMENTMACROECONOMIC POLICIESMACROECONOMIC STABILITYMARKET FAILURESMARKET SHARESMIDDLE INCOME COUNTRIESMIDDLE INCOME COUNTRYMINESMONETARY POLICYMONOPOLIESMORAL HAZARDNATIONAL OUTPUTNET EMPLOYMENTNET JOB CREATIONNEW MARKETSOILOIL PRICESOPEN ECONOMIESPARTICULAR COUNTRIESPENSIONPENSION CONTRIBUTIONSPOLICY INSTRUMENTSPOLITICAL ECONOMYPOLITICAL INSTITUTIONSPOLITICAL STABILITYPOPULATION GROWTHPOTENTIAL INVESTORSPRICE SUBSIDIESPRIVATE INVESTMENTPRIVATE INVESTMENTSPRIVATE PARTNERSHIPPRIVATE PARTNERSHIPSPRIVATE PROVISIONPRIVATE SECTORPRIVATE SECTOR WAGESPRIVATE SECTORSPRIVATIZATIONPRIVATIZATIONSPRODUCT DIVERSIFICATIONPRODUCTIVITY DECOMPOSITIONPRODUCTIVITY GROWTHPRODUCTIVITY INCREASESPROPERTY RIGHTSPUBLIC DEBTPUBLIC GOODPUBLIC SECTOR JOBSPUBLIC-PRIVATE PARTNERSHIPPUBLIC-PRIVATE PARTNERSHIPSRAPID EXPANSIONRAPID GROWTHREAL ESTATEREAL GDPREAL WAGESREGULATORSRENTSREPUTATIONRESOURCE MANAGEMENTRETAIL TRADERETIREMENTRISK PREMIUMSAFETYSAFETY NETSAVINGSSERVANTSSKILLED LABORSKILLS DEVELOPMENTSOCIAL BENEFITSSOCIAL PROTECTIONSOCIAL SAFETY NETSTATE CAPTURESTATE-OWNED ENTERPRISESSTRUCTURAL CHANGESUSTAINABLE GROWTHTAXTAX EXPENDITURESTECHNICAL ASSISTANCETECHNOLOGICAL CHANGETECHNOLOGY TRANSFERSTELECOMMUNICATIONSTOTAL EMPLOYMENTTOTAL FACTOR PRODUCTIVITYTOTAL FACTOR PRODUCTIVITY GROWTHTOTAL LABOR FORCETOTAL UNEMPLOYMENTTRADE COMPETITIVENESSTRADE DIVERSIONTRADE LIBERALIZATIONTRADE POLICYTRANSPARENCYUNEMPLOYEDUNEMPLOYMENTUNEMPLOYMENT PROBLEMUNEMPLOYMENT RATEVALUE ADDEDVENTURE CAPITALVENTURE CAPITAL FUNDSVIRTUOUS CYCLEVOLATILITYWAGE BILLWAGE INCREASESWORKERWORKING CONDITIONSWORKING STANDARDSWORLD DEVELOPMENT INDICATORSWORLD TRADEWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/12328