1. Did the Arab Spring Benefit
Economic Freedom in Jordan?
Dr. Yusuf Mansur
Economic Freedom of the Arab World Conference
October 20-21 2011

2. Table of Contents
1. Rankings
– Global Competitiveness Report
– Doing Business Report
– World Competitiveness Yearbook
– Economic Freedom Index, Heritage Foundation
– Economic Freedom of the World Index, Fraser Institute
2. Economic Developments
– Remittances
– Foreign Direct Investment
– Foreign Aid
– External and Domestic Debt
– Budget Deficit
– Trade Deficit
– Stock Market
– Unemployment
– Tourism
3. Events and Government Actions
4. Recommendations and Conclusions

3. Jordan in International Reports & Rankings
• Global Competitiveness Report, 2011/2012
Ranked 71 out of 142 countries, dropping 6 places from 65th place in 2010/2011
• Doing Business Report, 2011
Ranked 111 out of 183 countries, dropping 4 places from 107th place in 2010
• World Competitiveness Yearbook, 2011
Ranked 53 out of 59 countries, falling 3 places in 2010
• Economic Freedom Index, Heritage Foundation, 2011
Achieved a freedom score of 68.9, or 2.8 points better than last year, making its
economy the 38th freest out of 179 countries in the 2011 Index.
• Economic Freedom of the World Index, Fraser Institute, 2011
In 2009, Jordan ranked 62nd out of 141 countries with a score of 6.9 compared to 43
(score of 7.2) in 2008.

4. Global Competitiveness Indicators, 2011/2012
Rank
2009- Performance
Major Indicators 2010-2011 2011-2012
2010 Difference
133
139 Countries 142 Countries
Countries
Basic Requirement 46 57 61 4
Institutions 25 41 45 4
Infrastructure 42 61 59 2
Macroeconomic Environment 105 103 97 6
Health and Basic Education 57 65 72 7
Efficiency Enhancers 66 73 78 5
Higher Education and Training 42 57 59 2
Market Efficiency 43 46 54 8
Labor Market Efficiency 106 112 107 5
Financial Market Development 52 54 65 11
Technological Readiness 61 62 59 3
Market Size 82 84 88 4
Innovation & Sophistication Factors 51 65 70 5
Business Environment
Development
49 66 68 2
Innovation 59
Source: Global Competitiveness Report, 2011/2012, World Economic Forum 68 77 9

5. Global Competitiveness Index, Ranking per Nation,
2009/2010 to 2011/2012
120
100
80
Ranking
60
2009/2010
40 2010/2011
2011/2012
20
0
Qatar Saudi UAE Tunisia Oman Kuwait Bahrain Jordan Iran Egypt Algeria Lebanon Libya
Arabia
Country
Source: Global Competitiveness Report, 2011/2012, World Economic Forum
• Jordan, Egypt, Algeria and Libya have each recorded significant drops in their rankings, over the
previous year, while Qatar, Saudi Arabia, Tunisia, Oman and Kuwait have shown improvements in their
performances.
• Most of the nations that have shown improvements in their performances are oil producing nations,
while the non-oil producing Arab nations have shown weaker competitiveness levels.

6. Doing Business Rankings, per Indicator, 2005-2011
• The Doing Business Report, 2010/2011 measures the impediments and facilitators of businesses, in a
nation. This produces a time series of such factors as the guarantee of property rights, and the
intrusiveness of business regulations, over a time series.
• The ten factors analyzed in the Doing Business Report are detailed in the table below.
2005 2006 2007 2008 2009 2010 2011
Ease of Doing Business 73 74 78 80 101 100 111
Starting a Business 127 133 133 133 119 125 127
Dealing with
Construction Permits 68 71 70 71 116 92 92
Employing Workers 30 45 30 45 48 51 N/A
Registering Property 110 106 110 109 105 106 106
Getting Credit 76 80 83 84 125 127 128
Protecting Investors 114 105 118 107 114 119 120
Paying Taxes 16 19 18 19 22 26 29
Trading Across Borders 85 51 78 59 77 71 77
Enforcing Contracts 72 128 75 128 129 124 129
Closing a Business 79 84 84 87 96 96 98
Participating Countries 135 155 175 178 181 183 183
Source: Doing Business Report, 2011, World Bank Group

7. Doing Business Ranking, per Nation, 2011
• As shown in the table below, Jordan is in the middle range of in terms of, Doing Business vis the Arab
region. However, when all the oil-producing countries are excluded, Jordan is considered advanced.
Doing Business Ranks, 2011
Jordan 111
Oman 57
Qatar 50
UAE 40
Bahrain 28
Saudi Arabia 11
Kuwait 74
Egypt 94
Yemen 105
Syria 144
Lebanon 113
Iran 129
Algeria 136
Iraq 166
Source: Doing Business Report, 2011, World Bank Group

8. World Competitiveness Yearbook, Rankings per
Primary Indicators, Jordan, 2011
• The World Competitiveness Yearbook assesses the capacity of nations in terms of
developing and upholding an environment that is conducive to free enterprise, in 59
nations.
• The Yearbook measures economic growth, infrastructure levels, enterprise efficiency,
and public sector performance, over 331 sub-issues. Jordan’s rank has dropped from
37th place in 2007, to 53rd place in 2011.
2007 2008 2009 2010 2011
Overall Competitiveness 37 34 41 50 53
Economic Performance 44 51 53 45 55
Government Efficiency 32 25 32 39 31
Business Efficiency 31 21 44 46 52
Infrastructure 36 34 40 52 52
Source: World Competitiveness Yearbook, 2011, IMD Foundation

9. World Competitiveness Yearbook, Rankings per
Sub-Indicator, Jordan, 2011
• Jordan’s ranking has dropped, in most indicators relating to the
World Competitiveness Yearbook.
2009 Ranking 2011 Ranking
Domestic Economy 39 55
International Trade 6 31
International Investment 35 52
Employment 56 48
Prices 44 40
Public Finance 41 38
Fiscal Policy 21 15
Institutional Framework 32 37
Business Legislation 24 35
Societal Framework 38 43
Productivity and Efficiency 46 59
Labor Market 56 49
Finance 28 41
Management Practices 44 52
Attitudes and Values 39 39
Basic Infrastructure 51 59
Technological Infrastructure 39 49
Scientific Infrastructure 26 49
Health and Environment 46 46
Education 35 46
Source: World Competitiveness Yearbook, 2011, IMD Foundation

10. Economic Freedom Index, Heritage Foundation,
Jordan Rankings per Indicator, 2011
• The Heritage Foundation offers scores of 0 to 100, on a wide variety of issues affecting economic
freedom, where a score of 100 implies maximum freedom. In addition, the Heritage Foundation
provides rankings for 141 countries where Jordan placed 38th freest.
2005 2006 2007 2008 2009 2010 2011
Rank 27 36 29 42 51 52 38
Overall Score 66.7 63.7 64.5 64.1 65.4 66.1 68.9
Business Freedom 70 56 54.9 56.3 68.9 65.6 65.8
Trade Freedom 62.4 62.2 74.2 74.8 78.8 78.8 78.8
Fiscal Freedom 79.2 78.2 83.2 83.7 83 83 92.7
Government Spending 63.5 58.3 57.4 53.2 56.9 55.1 60.9
Monetary Freedom 81.8 84.4 83.5 80.4 80.2 73.2 81.4
Investment Freedom 70 50 50 50 50 65 70
Financial Freedom 70 70 60 60 60 60 60
Property Rights 50 50 50 55 55 55 55
Freedom From Corruption 46 53 57 53 47 51 50
Labor Freedom 73.9 74.8 74.6 74.6 74.1 74.2 74.2
Participating Countries 127 130 141 157 179 179 179
Source: Economic Freedom Index, 2011, Heritage Foundation

11. Economic Freedom of the World Index, 1980-2009
• The Economic Freedom of the World Index of 2011 relies on 2009 data. Jordan achieved a score of
6.84 in 2009 (where a score of 10 indicates perfect freedom), and a rank of 55 (a drop of twenty nine
places from 2005). Overall, Jordan has most freedom: access to sound money; freedom to trade
Legal
Structure & Regulation of
Rating & Access to Sound Freedom to
Gov Size Security of Credit, Labor &
Rank Money Trade
Property Business
Rights
Rating 5.5 5.33 2.54 6.82 6.52 6.08
1980
Rank 54 44 76 32 33 30
Rating 5.84 5.14 3.86 7.74 6.32 6.01
1985
Rank 40 54 79 30 36 35
Rating 6.05 7.27 4.37 6.2 6.56 5.98
1990
Rank 42 14 74 69 37 40
Rating 6.42 6.38 5.95 7.15 6.47 6.24
1995
Rank 48 48 45 53 70 39
Rating 7.24 6.08 7.22 9.67 7.02 6.22
2000
Rank 30 67 27 7 63 53
Rating 7.38 6.27 6.31 9.21 7.74 7.35
2005
Rank 26 76 50 37 20 29
Rating 7.14 5.64 6.56 8.35 7.67 7.45
2008
Rank 40 87 35 58 22 24
Rating 6.84 4.37 6.31 9.27 7.18 7.04
2009
Rank 55 109 45 35 34 39
Source: Economic Freedom of the World Index (Fraser), Jordan, 2011

12. Population, Corruption and Freedom Indicators
Country Population Population GDP per capita, Democracy Corruption Freedom Index of 100
(Million) under 25 000 at PPP = most
unstable
Algeria 35.9 47.5% 8.2 125 105 141 49.7
Bahrain 1.2 43.9% 24 122 48 153 36.5
Djibouti 0.9 57.2% 2.3 126 91 159 NA
Egypt 84.6 52.3% 5.9 138 98 130 65.7
Iraq 31.4 60.6% 4 111 175 144 65.7
Jordan 6.4 54.3% 5.2 117 50 140 48.7
Kuwait 3.5 37.7% 40.6 114 54 115 21.7
Lebanon 4.3 42.7% 13.4 86 127 115 30.7
Libya 6.5 47.4% 18.7 158 146 192 71
Mauritania 3.4 59.3% 1.9 115 143 118 57.4
Morocco 32.4 47.7% 4.7 116 85 146 46.8
Oman 3.3 51.5% 23.3 143 41 153 58.4
Palestine 4.1 64.4% 2.9 93 NA 181 NA
Qatar 1.7 33.8% 66.9 137 19 146 20.7
KSA 27.1 50.8% 22.9 160 50 178 52.5
Somalia 10.1 63.5% 0.6 NA 178 181 NA
Sudan 43.2 59% 2.3 151 172 165 NA
Syria 22.5 55.3% 4.7 152 127 178 67.3
Tunisia 10.4 42.1% 8.6 144 59 186 49.4
UAE 6.7 31% 27.2 148 28 153 24.3
Yemen 24.3 65.4% 2.9 146 146 173 86.6
Note: Ranking of democracy (out of 167 countries) ; ranking of corruption (out of 178 countries) ; ranking of press
freedoms (out of 196 countries)
Source: The Economist

13. Economic Developments – Remittances
Total workers’ remittances receipts decreased in the first seven months of 2011 by
4.8% compared to the same period in 2010 to reach JD 1,425.4 million.
Remittances, Q1 2010-Q2 2011
620
600
580
JD Million
560
540
520
500
480
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011
Source: “Recent Monetary and Economic Developments in Jordan” Central Bank of Jordan, August 2011.
Research Department “Monthly Statistical Bulletin” Central Bank of Jordan, April 2011

14. Economic Developments – Foreign Direct
Investment
Year FDI (JD Million) Foreign Direct investment
decreased in the first two
2006 2,512.7 quarters of 2011 by 15% from
2007 1,859.1 JD 655 million of the same
2008 2,005.7 period in 2010 to JD 561
million.
2009 1,722.9
2010 1,208
2011 (Q1) 249.7
2011 (Q2) 311.2
Source: Research Department “Monthly Statistical Bulletin”
Central Bank of Jordan, April 2011

15. Economic Developments – Foreign Aid
Foreign Grants, Jan 2010 – Jul 2011
Foreign Grants
Year Month
(JD Million) • Comparing Jan-July 2010 to Jan-July
2011, it is clear that the value of
2010 Jan 35.500
foreign grants in Jordan has nearly
2010 Feb 17.900
quadrupled (or 392%), amounting to
2010 Mar 14.800 JD 1.028 billion at the end of the
2010 Apr 35.400 period.
2010 May 25.400
2010 Jun 28.800 • Saudi Arabia granted Jordan some
2010 Jul 50.000
$1.45 bn to help reduce its budget
deficit.
2010 Aug 40.800
2010 Sep 30.000 • In addition, Jordan and the US signed
2010 Oct 10.000 five grant agreements worth $359.3
2010 Nov - million. Note that the table to the left
2010 Dec 113.100 excludes this aid. Making the grants
2011 Jan 17.800
total US$1.81 bn.
2011 Feb - Source: “Jordan, U.S. sign $359 Grant Deals”, Ministry of
2011 Mar - Planning and International Cooperation, October 2011
http://www.mop.gov.jo/pages.php?menu_id=115&local_type=1&local
2011 Apr - _id=551&local_details=1&local_details1=
2011 May 297.200
2011 Jun -
2011 Jul 709.000
Source:"Jordan Receives $1 Billion Grant From Saudi Arabia" Ammon
News, 2011 <http://en.ammonnews.net/article.aspx?articleNO=13030>

16. Economic Developments – External Debt and
Domestic Debt
7,500
• Domestic debt increased by 5%
7,000
or 349 million between July
6,500
2010 to July 2011
6,000
JD Million
5,500 • External Debt increased by
5,000 557.2 million or 13.6% across
4,500 the same period
4,000
3,500 • Public Debt now stands at
3,000 57.4% of GDP compared to
Jul…
Jan…
61.4% of GDP at the end of
Feb
Aug
Dec
Nov
Mar
Jun
Jul
Sep
Oct
Apr
May
2010.
External Debt
Domestic Debt
Source: Research Department “Monthly Statistical
Bulletin” Central Bank of Jordan, April 2011

17. Economic Developments – Budget Deficit
Deficit/Surplus
Monthly Dec-10 Jan Feb Mar Apr May June July Total
JD Millions
Including
-243.4 9 -195.2 -53.6 91.2 106.8 -218.3 590.6 87.1
Grants
Excluding
-356.5 -8.8 -195.2 -53.6 91.2 -190.4 -218.3 -118.4 -1050
Grants
Source: Research Department “Monthly Statistical Bulletin” Central Bank of Jordan, April 2011
The impact of the Saudi grant can be clearly seen in the table above. The deficit,
excluding grants, stood at JD1050 million at the end of July 2011, while that
including grants reached a surplus of JD 87.1 million for the same period.
Current Account Deficit: The current account deficit now stands at JD -1151.4
million for the first two quarters of 2011. This is an increase of 52.3% or JD 602.1
million over that of the same period of last year.

18. Economic Developments – Trade Deficit
Source: Research Department “Monthly Statistical Bulletin” Central Bank of Jordan, April 2011
• Compared to July 2010, Jordan’s trade deficit rose 15.4% to reach nearly JD 562.6
million in July 2011.
• The value of imports amounted to JD 1.030 m compared to JD 897.1 m or an increase
of 13% for the same period.
• Meanwhile, the value of exports reached JD 467.8 m compared to JD 409.8 m, an
increase of 12.4%.

19. Economic Developments – Stock Market
Value Traded JD 2011 2010 Change (%)
Jan-Sep 2,348,359,930 5,662,850,599 -59%
Start of
Arab
Spring
Source: Amman Stock Exchange, Monthly Statistical Bulletin, Awraq Investments H1 results,
October 2011
Value of shares traded for the first 9 months of 2011 was 59%
lower than that of the same period of 2010.

20. Economic Developments – Unemployment
Unemployment
14
13.5
13.5 13.2
13.1 13.1
13
12.4
12.5 12.2
12
11.5 11.8
11
10.5
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011
Source: “Quarterly Unemployment Rates for 2009 and the Third Quarter of 2011” Department of
Statistics, Jordan, 2011
• Between Q4 2010 and Q3 2011, the unemployment rate rose by 1.3%
• Unemployment in Jordan fluctuated between the first quarter of 2010 and
the third quarter of 2011, recording a low of 11.8% in the Q4 2010 and a
high of 13.5% in Q3 2010.

21. Economic Developments – Tourism
• The number of visitors to the Kingdom dropped by 13% in the first nine months of the year
compared to the same period in 2010, according to official statistics from the Ministry of
Tourism & Antiquities.
• According to the Ministry of Tourism’s monthly report, 5,097,368 tourists visited the
country between January and September 2011, while the figure stood at 5,878,373 in the
same period last year.
• The report also showed a 31% drop in the number of Jordanian expatriates who visited the
country in the same period. Approximately 662,625 Jordanian expatriates visited the
Kingdom in the first nine months of the year, compared to 965,227 in the same period of
2010.
• The report attributed the drop in the total number of visitors and the number of Jordanian
expatriates to the current unrest in the region.
• The number of tourists from the Gulf states, however, rose by 28% in the period to
958,635 tourists, compared to 751,385 in the first nine months of 2010, according to the
report.

22. Timeline of Protests and Government Actions
07/10/2011
14/01/2011 After a lull in
Protests led by trade 25/03/2011 August and
unionist and leftist Clashes occurred between September, former
parties took place pro-government supporters prime minister
calling for the removal and more than 2,000 Ahmed Obeidat led
of Samir Rifai 25/02/2011 protesters at Gamal Abdel over 2,000 people
government due to their The protests reached a Nasser Circle. 15/04/2011 in a march in
inability to rein in prices peak of around 10 On the same day, 35 2,000 protesters Amman to push
and poverty. thousand people at Al- thousand gathered in Al- demanded greater their demand for
Hussein Gardens west of political
Event
Husaini mosque the downfall of Al-
demanding political and Amman to express loyalty representation, with Bakhit’s
21/1/2011 economical reform. and allegiance to the King. half of them government saying
Despite Rifai’s efforts to Local police separated demonstrating in it had failed to deal
alleviate Jordan’s anti-government Amman. Also, a crowd with corruption and
economic misery, 5,000 protesters and pro- of a few hundred adopt political
people protested in regime supporters. Islamists clashed with reform.
Amman and other cities. the gendarmerie in
Zarqa.
Jan Oct
12/06/2011
Commemorating 12
26/01/2011 15/03/2011 years on the
Government Action
18/01/2011 King speech promises The King appointed a 28/03/2011
Samir Rifai Following the throne, the King said
political and economic 53-member committee
government clashes, King Abdullah he will relinquish his
reform and with government
reversed a rise II called for national right to appoint prime
Constitution officials and opposition
in fuel price. unity, stating that ministers and
amendments. leaders to draft new
economic and political cabinets, instead
laws for parliamentary leaving it to the
01/02/2011 elections and political reforms were on their
way. elected parliamentary
King Abdullah II parties, setting a
The Parliament majority to form future
dismissed Rifai’s three-month deadline.
rejected calls to cabinets.
government and However, the Muslim
reduce the king's He also said that more
ordered Marouf Al- Brotherhood refused
power. And the reforms would be
Bakhit to form the new to participate until the
government decided to announced in the
cabinet, pledging dissolution of
ban its supporters future, including new
enhanced parliament with a new
from demonstrating in election and political
freedoms, economic prime minister elected
the capital, while the party laws.
reform and political from a parliamentary
reforms. Also, a majority. opposition was allowed
$500m package of to demonstrate in
price cuts in fuel and specially designated
essential goods, was areas in Amman.
announced, along with Government appoints
salary increases for a new committee to
civil servants and the engage in national
military. dialogue.

23. Current Government Status Quo
Approved Oct 2011
The table below illustrates the distribution of the Budget Annex:
Budget Annex Purpose
66% To maintain subsidies on bread,
barley and gas
16% Outstanding government
procurement and construction
payments
14% The Royal Decree granted JD 100
to all retired and active security,
government military personnel
4% Regional Development Fund for
Governorates
In addition, the government issued international Euro bonds last year, which
have declined 10% in value, making it difficult for the government to issue
new bonds

24. Conclusions
Economic Indicator Effect
Remittances 13.5% July 2011 – July 2010
Foreign Direct 15% first two quarters of 2010 vs. first two
Investment quarters of 2011
Foreign Aid 329% comparing Jan-July 2010 to Jan-July
2011, amounting to JD 1.024 b.
External and Domestic Domestic debt increased by 5% or 349 m
Debt between July 2010 to July 2011; External debt
increased by 557.2 m or 13.6%
Budget Deficit Current account deficit stands at JD -1151.4 m
for the first two quarters of 2011, which is a
52.3% or JD 602.1 m increase on the same period
of last year
Trade Deficit Rose by 15.4% between July 2010–July 2011
Stock Market Value traded at Amman Stock Exchange [ASE]
declined by 50.3% since December of 2010.
The ASE general index decreased by 17.1% for
the same period.
Unemployment Between Q4 2010 and Q3 2011, the
unemployment rate rose by 11.1%
Tourism Number of visitors dropped by 13% from Jan-
Sept in 2011 compared to the same period in 2010

25. So, Did the Arab Spring Enhance
Economic Freedom?
Thank You!