Synopses & Reviews
This report draws lessons for improving the policy design of poverty alleviation schemes in Jordan. The conclusions herein are based on analyses of trends in consumption poverty in Jordan and assessment of the impact of government programs (including food subsidies and cash transfers) on poverty alleviation in the 1990s. Poverty declined between 1992 and 1997 because inequality declined. Government programs, especially those targeted to the poor like the National Aid Fund, contributed to poverty alleviation. However, poverty continues to be a major policy challenge for Jordan: the poor and near-poor remain vulnerable as a result of the shallowness of poverty in Jordan (Many people are concentrated close to the poverty line) and the adverse effects of potential shocks. The report concludes the following: 1) Sustainable poverty reduction requires resumption and sustainability of growth. 2) There is a need for a policy response to the vulnerability of the poor and near-poor to economic shocks. 3) The capacity of the National Aid Fund (NAF) needs to be significantly enhanced. 4) Continued priority needs to be placed on human development policies, particularly those affecting the poor.
Synopsis
The aim of this report is to draw lessons from Jordan's recent experience in policy design improvements of poverty alleviation proposals. It provides background of the macroeconomic developments in Jordan during the 1990s and documents the decline of poverty and inequality between 1992-1997. The conclusions of this report are based on evaluating recent trends in poverty and on assessing the impact of government programs on poverty alleviation.