Jordan and the IMF: From Rescue to Dependency

Writer: Ahmad Awad

Since 1989, cooperation between Jordan and the International Monetary Fund (IMF) has been a central focus of Jordanian economic policy. This relationship began with a severe financial crisis, which prompted Jordan to enter into its first-ever agreement with the IMF, setting itself on a path of structural adjustment and fiscal discipline. Since then, the country has entered into at least nine successive programs, which included neoliberal austerity-based political and fiscal prescriptions under the umbrella of what was known as the “Washington Consensus.”

The stated goals of these programs were to achieve financial and monetary stability, reduce the budget deficit, reduce debt, achieve inclusive growth, and reduce poverty and unemployment. However, experience over more than three decades has proven that the most notable success of these programs has not gone beyond enabling Jordan to continue meeting its financial obligations to creditors, which is the real goal the IMF appears to be focusing on, despite the rhetoric surrounding financial sustainability and stability.

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