Preparing to Maximize Finance for Development in Jordan Through a Policy Framework

Abstract

The Mashreq region and, in particular, the countries of Iraq, Jordan, and Lebanon are facing major policy and fiscal challenges to growth and job creation. The Maximizing Finance for Development (MFD) approach aims to optimize the relationship between the public and the private sector.It would achieve this in two major ways: (i) maximizing the volume of investment and commercial finance that can be crowded in by effective reforms coupled with targeted deployment of scarce domestic and international public funds; and (ii) efficiency gains with extensive involvementof the private sector to expand and improve public services while minimizing the burden on the national budget and tax resources. The World Bank Group seeks, for the first time, todevelop and implement the MFD agenda based on a standardized subregional framework. This note describes the prerequisites recently put in place in Jordan for effective MFD implementation through a combined public investment management (PIM) and public-private partnership (PPP)policy framework.