Written by Hadeel Albis

Jordan observed the International Day of the Eradication of Poverty amid economic and political crises and a projected rise in poverty rates. 

Since the outbreak of COVID-19, Jordan’s economy has suffered crisis after crisis—from waves of inflation in 2021, to repercussions from regional conflicts such as the Russian-Ukrainian war and, most recently, the genocide in Gaza. Today, the Kingdom continues on the path of economic decline.

The 2023 World Bank Atlas of Sustainable Development Goals estimates that 35% of the Jordanian population lives below the poverty line, equivalent to 3.98 million people. The report calls this an unprecedented increase that requires a serious review of government strategies.

Signs for Concern 

Director of Al Thurayya Centre for Studies and Professor of Sociology Dr. Mohammad Al-Jarabeh cited these declines as real risks to the State’s ability to manage its institutions effectively. He emphasized that poverty is not only an economic or social issue, but also a direct threat to national security and political stability. 

Dr. Jarbiya explained that political challenges contribute to rising poverty rates that he expects are higher than the official numbers. Even during periods of relative stability, he said, Jordan struggled to find effective solutions to the country’s economic downfall. How then, he added, can it cope under the current circumstances, which are beyond control and directly impact government performance?

Dr. Jarbiya emphasized that it is necessary to conduct modern and robust scientific studies that examine social implications, as poverty is no longer merely an economic equation. Rather, the structure of the Jordanian family and their priorities have evolved alongside economic shifts and globalization.

He added that rapid economic development led to the disappearance of core professions, and while new jobs have emerged, wars and conflicts have undone previous progress, forcing governments to prioritize maintaining stability and preventing further deterioration. 

Per Capita Income Below the Poverty Line

Social-economic expert Hossam Aiesh said that government aid to an estimated 220,000 families is an attempt to alleviate poverty. However, he notes their per capita incomes remain below the poverty line of 69 Jordanian Dinars per month. In light of these discrepancies, he emphasizes the importance of reevaluating poverty management policies and developing new solutions. 

Aiesh adds that multiple factors contribute to food insecurity for these families, most notably low income, large household size, high prices, inflation rates, and a lack of affordable essentials in sufficient quantities.

In 2021, the government announced that the poverty rate had risen to 24% – nearly a third of Jordanians were close to the poverty line – whether below or slightly above it. The poverty line for a standard family of 4.8 people was estimated in 2021 at around 500 dinars per month.

In 2023, the World Bank report indicated that the national poverty line per capita in Jordan is $7.9 per day, equivalent to 5.6 Jordanian Dinars, or about 168 Dinars per month.

Two Million Dinars to Update Official Poverty Statistics

Despite recent economic decline, the Kingdom has not updated official poverty rates. The Department of Statistics conducted the last Household Income and Expenditure Survey between 2017 and 2018, which revealed that approximately 16% of Jordanians (1.069 million people) were living below the poverty line. 

Director General of the Department of Statistics Haider Fraihat stressed that they would conduct the Household Income and Expenditure Survey to update official data, including the poverty index, “at the earliest possible opportunity.” However, he revealed that the survery requires an entire year of fieldwork and two million dinars.

Dr. Fraihat points out that the Household Income and Expenditure Survey, conducted periodically by the department, provides valuable insights into human income behaviors, including poverty levels based on citizens' spending patterns.

Solutions to Combat Poverty

In light of these challenges, a report by “Workers’ House” — a Jordanian Labor Rights Center — offered a number of suggestions to improve economic conditions, such as stimulating investment in sectors that create new jobs, promoting Small and Medium-sized Enterprises (SMEs), and expanding social protection networks to include the most vulnerable brackets of the population. This includes informal employees, who constitute 50% of the Jordanian workforce, yet lack legal and social protection and often work under precarious conditions. 

The report highlighted the importance of investment in education and vocational training, citing education as an effective tool to break the cycle of poverty through job and income stability. It noted that cooperation between the government and the private sector is an essential component of the solution, by providing new jobs and skills training. 

Furthermore, the report calls on the government to revise existing policies and update official numbers on poverty and working conditions, because a lack of current data impedes accurate decision making. Lastly, it emphasized the need for cooperation between all stakeholders to ensure a healthy work environment so that all Jordanians may live in dignity.