Jordanian officials, economists, certain political parties, and international financial institutions have long repeated the argument that the key to Jordan’s economic success lies in letting the private sector take the lead in steering the national economy.
اضافة اعلان
This proposition is often presented as a "magic formula" capable of driving economic growth, overcoming financial crises, reducing unemployment, and addressing the structural challenges that have burdened Jordan for decades. Yet, despite its apparent appeal, this assumption rests on a flawed reading of both the Jordanian economy and the experiences of countries that have successfully built strong and stable economies.
At the heart of this premise is the neglect of the state’s pivotal role as the primary actor in shaping the overall framework of the national economy. The private sector, by its very nature, seeks profit and expansion, above all else, a legitimate and essential function in any economy. However, leaving the responsibility of leading economic development solely to the private sector essentially means outsourcing national priorities, such as social justice, food and water security, and expanding social protection to an economic actor that does not necessarily place them among its core objectives.
By contrast, the state plays an irreplaceable role. It is the body capable of enacting regulatory frameworks, providing incentives and facilities, and directing investments toward sectors of national priority such as education, health, infrastructure, and renewable energy. The state is also the guarantor of a fair distribution of the benefits of economic growth, through equitable tax policies, robust social protection systems, and oversight institutions that safeguard all segments of society.
The experiences of successful countries in Asia and Europe highlight this clearly. Asian nations did not achieve their developmental leaps until the state strongly intervened to set investment priorities, protect emerging industries, and build strong educational and health systems that enhanced the competitiveness of their labor force. Likewise, European economies that managed to soften the impact of successive financial crises did so through solid welfare systems that enabled citizens to endure hardships, fostered social and economic stability, and created an environment where the private sector could thrive.
From this perspective, the right formula for Jordan’s economy is not to replace the state with the private sector as the driver of the economy, but rather to build comprehensive national policies led by the state while engaging all stakeholders: the private sector, trade unions, civil society organizations, and the academic community. Such policies should focus on achieving inclusive and balanced economic growth, rather than merely boosting investment figures or increasing exports without regard to how the gains are distributed.
Restoring the central role of the state does not mean excluding the private sector. Instead, it means regulating and guiding its role so that it contributes to broader national goals, while providing the necessary legislative environment, infrastructure, and political and social stability that allow it to grow and profit. Only then can a balance be struck between economic efficiency and social justice, setting Jordan’s economy on a more sustainable and equitable path.
Betting on the private sector to lead Jordan’s economy is a misguided prescription, one that oversimplifies a complex equation. The real formula is for the state to step forward and lead with a comprehensive vision—one that balances profit and efficiency on the one hand, with social protection and justice on the other. In this way, the private sector becomes a partner in development, not a substitute for the state in charting its course.
