Development Policy Loan to support the Public Sector Modernization Reform

The Hashemite Kingdom of Jordan stands out in its regional environment for its remarkable political and institutional stability. However, the country is facing structural challenges on economic and social levels, which are now exacerbated by more than a year of war between Israel and Gaza with worrying consequences for public finances (drop in tourism-related revenues, declining consumption) and weakening the preservation of social cohesion. 

As public administration is a major element of the social contract, , the Jordanian authorities launched a major reform programme based on three priorities :  Economic Modernization Vision, Political Modernization and Public Sector Modernization Roadmap. This third goal is supported by AFD’s loan.

The Public Sector Modernization roadmap aims at initiating, in parallel with the commitments made in favour of economic modernization, a process of global modernization of public institutions, broken down into three main pillars: 

• a first pillar dedicated to public services, with a strong focus on simplification, accessibility and digitization of essential services;
• a second pillar dedicated to institutional strengthening, focusing on organisational issues, public decision-making mechanisms, human resources management and institutional culture;
• and a legislative pillar to bring the whole legal and normative framework relating to the organisation of the State, the civil service, and the provision of public services to citizens up to standards.

AFD will support The Public Sector Modernization roadmap with a 150M€ loan alongside with the help provided by others IFI’s as World Bank, USAID and more closely with the loan provided by KFW and the grant provided by EU.

The implementation of the Public Sector Modernization Roadmap (PSMR) will contribute to creating a sustainable, advanced, and skilled public sector that operates effectively and efficiently in response to the needs and expectations of citizens. With this loan and technical assistance activities, Jordan will move towards a public sector that is better equipped to face current and future challenges (climate change, integration of refugees, etc.). The programme will also help to strengthen the confidence of Jordanian citizens in their own administration, as an essential factor in social cohesion. Rationalising the public sector will also have a positive effect on public finances, freeing up new margins for public investment in the country.