Jordan Second Equitable Growth and Job Creation Programmatic Development Policy Financing
01/06/2018
Jun 2018
Dec 31, 2022
US $ 1,450 million
Loan
Reduce business costs and improve market accessibility.
Create more flexible and integrated labor markets and provide better and more efficient social assistance.
Improve fiscal sustainability and take more informed decisions regarding risk.
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.
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.
The Government of Jordan achieved 26 policy reforms under both DPL I and DPL II, including the following:
Approved an investor grievance mechanism.
Carried out a review of the legal framework to identify causes of segmentation in the labor market.
Digitization of payments to new National Aid Fund beneficiaries through e-wallet and bank accounts
Enacted the Insolvency Law introducing business insolvency procedures.
Issued instructions on flexible work with minimum wage rates depending on the hours of work.
Enacted a consolidated legal framework for public procurement.
Issued instructions allowing high-skilled foreigners to work in occupations and sectors previously restricted to them.
Approved a revised Public-Private Partnership (PPP) Law including reinforcing provisions on government controls of fiscal risks and contingent liabilities.
Approved the Climate Change Bylaw to continue the low-carbon transition and climate-resilient growth of the economy.
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