Jordan First and Second Equitable Growth and Job Creation Programmatic Development Policy Financing

01/06/2018

Starting Date

 Jun 2018

End Date

  Dec 31, 2022

Budget

US $ 1,450 million

Type of Program

 Loan

Program Development Objective was to support Jordan to set foundations to:

icon Reduce business costs and improve market accessibility.

icon Create more flexible and integrated labor markets and provide better and more efficient social assistance.

icon Improve fiscal sustainability and take more informed decisions regarding risk.

(DPF1)

The first Equitable Growth and Job Creation Development Policy Financing (DPF1) was designed with the goal to support Jordan to lay the foundation for more sustainable economic growth with higher outputs, as well as help create more jobs for Jordanians and non-Jordanians by simplifying the business environment, promoting exports, developing the credit infrastructure, introducing flexibility into the labor market, reducing the cross-subsidies in electricity pricing and developing and further expanding the social assistance system.

(DPF2)

The Second Equitable Growth and Job Creation Development Policy Financing (DPF2) continued and deepened the policy reforms supported under the first DPF. The program further supported Jordan’s Reform Matrix with the addition of critical macroeconomic reforms in support of private sector–led growth, reform of the energy sector (a source of fiscal losses in 2018), and improved debt management.

Notable Achievements:

The Government of Jordan achieved 26 policy reforms under both DPL I and DPL II, including the following:

icon Approved an investor grievance mechanism.

icon Carried out a review of the legal framework to identify causes of segmentation in the labor market.

icon Digitization of payments to new National Aid Fund beneficiaries through e-wallet and bank accounts

icon Enacted the Insolvency Law introducing business insolvency procedures.

icon Issued instructions on flexible work with minimum wage rates depending on the hours of work.

icon Enacted a consolidated legal framework for public procurement.

icon Issued instructions allowing high-skilled foreigners to work in occupations and sectors previously restricted to them.

icon Approved a revised Public-Private Partnership (PPP) Law including reinforcing provisions on government controls of fiscal risks and contingent liabilities.

icon Approved the Climate Change Bylaw to continue the low-carbon transition and climate-resilient growth of the economy.

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