1.4 Government
1.4.1 Economic Growth
Over the past decade, large sums of government resources have been allocated to support the
development of our private sector across a number of industries and sectors seen as engines for
growth and job creation. As a result of these investments and the success of our private sector, the
Jordanian economy is more diversified than many neighboring economies in the Middle East.
To maintain and strengthen the diversity in our economy, it is necessary to continue to develop the
export-potential of our economic sectors and activities with comparative advantages at the regional
and global levels. Jordan 2025 identified a number of priority sectors for further development and
promotion given their export and job creation potential.
There is no doubt that Jordan has achieved high economic growth during the period 2002-2008. This
growth, however, did not contribute to reducing poverty and unemployment or bridging the gap
between governorates to the desired extent. This highlights the need to focus on improving social
indicators rather than assuming that they go hand in hand with growth. Instead, these indicators
should be directly measured and adopted as signs of development and goal achievement.
Figure 17: The Sectoral Composition of GDP
Market Structure of Key Sectors in Jordan
GDP by Sector, 2006
221 Conseds
Sai Cts
\ \ simon SSR
Rees sue
GDP
by Sector, 2018,
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Soutee: Ministry of Planning and Intemational Cooperation( MOPIC),Input-Ouspat Tables,
1.4.2 Public Sector Size and Effective
Government institutions, policies and programs have played a central role in the evolution and
development of Jordan as a modern nation. Jordan has been subject to waves of immigration that
have contributed to population growth in a turbulent regional environment. Asa result, the
responsibilities of public institutions have increased. As Government has become larger and more
‘complex, it has also become expensive to manage and sustain. At 31.3% of GDP in 2014, Jordan's
public expenditure as a share of the economy is very large by international standards and needs to be
reduced and made more efficient.
In this context, we must build on previous efforts that have been undertaken as part of the
restructuring of some public sector institutions under Law No. (17) for the year (2014) regarding the
restructuring of governmental institutions and departments, under which some institutions were
cancelled or merged. The creation of government department and development of organizational
structures bylaw was also issued in order to create a legislative framework governing the
organizational structure of the government and regulating the process of creating new institutions or
preventing financial and administrative independence.
Where appropriate, we should also look to the private sector to perform some basic functions
currently undertaken in the public sector where they can deliver better quality services on a more
sustainable financial basis while still being accountable to citizens. According to the Government
Effectiveness Index, Jordan's performance has declined during the period 2002-2013 and ranked lower
than comparable countries.
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