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Jordan Table of Contents


The 1986-90 Five-Year Plan

In early 1989, it was not feasible to make a comprehensive assessment of Jordan's progress toward accomplishing the goals of its 1986-90 Five-Year Plan. In the past, development goals had been ambitious but progress was modest. For example, several important goals of the 1980-85 plan were not met: planned GDP growth was 11 percent per year, but actual growth was about 4 percent; planned investment growth was about 12 percent per year, but actual investment growth was less than 1 percent; and planned growth in export of goods and services was 21 percent per year, but actual growth was 3.4 percent.

Total investment spending under the 1986-90 Five-Year Plan was targeted at JD3.2 billion, of which the government was to contribute JD1.8 billion and the private and mixed sectors JD1.4 billion. National savings were to provide about 36 percent of the plan's financing, transfer payments such as aid and remittances were to finance about 37 percent, and external borrowing was to finance about 26 percent. The plan listed seven broad goals in order of priority assigned by the government. The foremost goal was to attain and sustain a 5 percent rate of GDP growth and to increase real per capita GDP by 1.3 percent per year. The second goal was to cap unemployment through the creation of more than 200,000 new jobs, of which almost 100,000 would be created through investment-led economic growth. The remainder were to be created through the eviction of foreign guest workers and the emigration of Jordanian labor. The third goal was to keep growth in public and private consumption below GDP growth so that by 1990 consumption would equal production. The fourth goal was to increase domestically generated government revenue to eliminate deficit spending. The fifth goal was to reduce, but not eliminate, the goods and services trade deficit. The sixth goal was to strengthen inter-Arab economic cooperation through the establishment of international joint ventures and the reduction of trade barriers. Finally, the plan called for more equitable distribution throughout the country of the benefits of development.

The plan also listed growth targets for the various economic sectors, including 46 percent real increases in agricultural income and mining income and a 40 percent real increase in manufacturing income over the five-year period. The plan envisioned a 23 percent real increase in service sector income over the same period. Because the goods-producing sectors were to grow faster than the service sector, the latter's contribution to GDP would be reduced to about 61 percent.

Data as of December 1989