Jordan Second Programmatic DPL

closed

The operation aims to enhance Jordan's capacity and performance in the area of governance, fiscal management and efficiency, and private sector-led growth. The overall objective of the operation is to support key elements of Jordan's comprehensive executive development program (EDP) and government work plan 2013-16. Specifically, the operation is built around three pillars, which are also the operation's program's development objectives (PDOs): (i) improve transparency and accountability; (ii) improve debt management and the efficiency of government spending; and (iii) promote private sector-driven growth. Notwithstanding short-term challenges, the development policy loan (DPL) addresses key bottlenecks that impede Jordan's transition to a knowledge-based economy with shared prosperity. The DPL, therefore, supports a nascent agenda to make government institutions and policies more transparent and accountable and improve citizen trust and confidence in the government through improved public consultations and participation in policy making. The DPL also focuses on improving public finance efficiency which supports the Government of Jordan (GoJ's) ongoing fiscal consolidation efforts without compromising the quality of public services or economic growth. Finally, the DPL supports reforms aimed at enhancing private-sector driven growth by fostering investment, reducing red tape, and broadening private sector access to finance. Importantly, the financial support of the DPL also contributes to maintaining macroeconomic stability, a necessary contributor to achieving the government's poverty reduction and high and shared growth objectives.