Productivity and Artificial Intelligence: A Pillar of Economic Resilience and Growth in Jordan
Productivity is the foundation of any economy that seeks growth and stability. It is the true measure of how well production factors generate added value. In Jordan, productivity levels remain low compared to countries with similar economic and social conditions. This weakens the competitiveness of the national economy and slows its ability to create new jobs.
A major part of these challenges comes from limited investment in human capital. Education systems focus more on theory than practice, while the demand for digital and technological skills is rising. At the same time, small and medium-sized enterprises (SMEs) – which make up more than 90% of the economy – face difficulties in accessing financing, receiving only about 11% of total bank credit. This limits their ability to expand and adopt modern technologies.
Estimates show that labor productivity growth in Jordan does not exceed 1–1.2% annually, while similar emerging economies achieve between 3–4% annually. This gap highlights the urgent need for reforms in education, labor markets, and financing to ensure more efficient use of human and financial resources.
Additional challenges include bureaucracy and complex administrative procedures, as the business environment still lacks tax incentives that encourage innovation and support productive and entrepreneurial projects. Public sector reform and private sector empowerment also remain below expectations, weakening integration between the two sectors and reducing their contribution to higher productivity.
Yet opportunities remain. Digital transformation and artificial intelligence (AI) open wide prospects for raising efficiency and reducing costs. In agriculture, AI can improve water management, irrigation, and crop monitoring. In health, digital technologies enable early diagnosis and better care. In tourism, smart platforms enhance marketing and visitor experiences. In transport, intelligent traffic systems help reduce congestion. Even in government services, automation tools save time and costs while building citizens’ trust.
The Economic Modernization Vision 2033 recognizes both the challenges and opportunities. It places productivity at the core of its priorities, linking it to education reform, digital transformation, and investment attraction. However, the main challenge is not in setting a clear vision, but in the slow move to execution. Since the vision was launched in 2022, the government spent nearly three years preparing the executive program—a relatively long time compared to the size of the challenges. This delay weakened the ability to boost productivity early and gave citizens the impression that government action is slower than circumstances demand.
While preparing legislation and institutional frameworks was necessary, the extended preparation period missed the chance for faster progress. International experiences show that preparing executive programs usually takes six to twelve months, after which governments move quickly into implementation and performance monitoring. Jordan, however, entered the execution phase late, which slowed productivity gains and reduced the ability to meet growth and employment targets outlined in the vision.
The key question remains: how can this delay be compensated? Restoring momentum is possible by accelerating implementation and focusing on projects with direct impact on productivity, such as education reform, vocational training, SME support, and digital transformation in high-value sectors. At the same time, adopting clear performance indicators and compressed timelines, combined with stronger transparency and monitoring, can help regain lost ground and rebuild citizens’ trust in the government’s ability to deliver results.
Moreover, boosting productivity is not only about achieving economic growth and lowering unemployment. It is also a fundamental pillar of economic resilience. In the face of Israeli attempts to impose displacement on the Palestinian people—which could bring serious security, demographic, and economic challenges for Jordan—building a stronger and more productive economy becomes a national necessity to protect internal stability.
In the end, improving productivity in Jordan is not an optional policy choice. It is the essence of economic and political success. If governments want to maintain society’s trust, they must move quickly from planning to execution and link every step to a timeline and measurable results. This is no longer a matter of administrative preference—it is the essential condition for making the Economic Modernization Vision a tangible reality in people’s lives.
Productivity is the foundation of any economy that seeks growth and stability. It is the true measure of how well production factors generate added value. In Jordan, productivity levels remain low compared to countries with similar economic and social conditions. This weakens the competitiveness of the national economy and slows its ability to create new jobs.
A major part of these challenges comes from limited investment in human capital. Education systems focus more on theory than practice, while the demand for digital and technological skills is rising. At the same time, small and medium-sized enterprises (SMEs) – which make up more than 90% of the economy – face difficulties in accessing financing, receiving only about 11% of total bank credit. This limits their ability to expand and adopt modern technologies.
Estimates show that labor productivity growth in Jordan does not exceed 1–1.2% annually, while similar emerging economies achieve between 3–4% annually. This gap highlights the urgent need for reforms in education, labor markets, and financing to ensure more efficient use of human and financial resources.
Additional challenges include bureaucracy and complex administrative procedures, as the business environment still lacks tax incentives that encourage innovation and support productive and entrepreneurial projects. Public sector reform and private sector empowerment also remain below expectations, weakening integration between the two sectors and reducing their contribution to higher productivity.
Yet opportunities remain. Digital transformation and artificial intelligence (AI) open wide prospects for raising efficiency and reducing costs. In agriculture, AI can improve water management, irrigation, and crop monitoring. In health, digital technologies enable early diagnosis and better care. In tourism, smart platforms enhance marketing and visitor experiences. In transport, intelligent traffic systems help reduce congestion. Even in government services, automation tools save time and costs while building citizens’ trust.
The Economic Modernization Vision 2033 recognizes both the challenges and opportunities. It places productivity at the core of its priorities, linking it to education reform, digital transformation, and investment attraction. However, the main challenge is not in setting a clear vision, but in the slow move to execution. Since the vision was launched in 2022, the government spent nearly three years preparing the executive program—a relatively long time compared to the size of the challenges. This delay weakened the ability to boost productivity early and gave citizens the impression that government action is slower than circumstances demand.
While preparing legislation and institutional frameworks was necessary, the extended preparation period missed the chance for faster progress. International experiences show that preparing executive programs usually takes six to twelve months, after which governments move quickly into implementation and performance monitoring. Jordan, however, entered the execution phase late, which slowed productivity gains and reduced the ability to meet growth and employment targets outlined in the vision.
The key question remains: how can this delay be compensated? Restoring momentum is possible by accelerating implementation and focusing on projects with direct impact on productivity, such as education reform, vocational training, SME support, and digital transformation in high-value sectors. At the same time, adopting clear performance indicators and compressed timelines, combined with stronger transparency and monitoring, can help regain lost ground and rebuild citizens’ trust in the government’s ability to deliver results.
Moreover, boosting productivity is not only about achieving economic growth and lowering unemployment. It is also a fundamental pillar of economic resilience. In the face of Israeli attempts to impose displacement on the Palestinian people—which could bring serious security, demographic, and economic challenges for Jordan—building a stronger and more productive economy becomes a national necessity to protect internal stability.
In the end, improving productivity in Jordan is not an optional policy choice. It is the essence of economic and political success. If governments want to maintain society’s trust, they must move quickly from planning to execution and link every step to a timeline and measurable results. This is no longer a matter of administrative preference—it is the essential condition for making the Economic Modernization Vision a tangible reality in people’s lives.
Productivity is the foundation of any economy that seeks growth and stability. It is the true measure of how well production factors generate added value. In Jordan, productivity levels remain low compared to countries with similar economic and social conditions. This weakens the competitiveness of the national economy and slows its ability to create new jobs.
A major part of these challenges comes from limited investment in human capital. Education systems focus more on theory than practice, while the demand for digital and technological skills is rising. At the same time, small and medium-sized enterprises (SMEs) – which make up more than 90% of the economy – face difficulties in accessing financing, receiving only about 11% of total bank credit. This limits their ability to expand and adopt modern technologies.
Estimates show that labor productivity growth in Jordan does not exceed 1–1.2% annually, while similar emerging economies achieve between 3–4% annually. This gap highlights the urgent need for reforms in education, labor markets, and financing to ensure more efficient use of human and financial resources.
Additional challenges include bureaucracy and complex administrative procedures, as the business environment still lacks tax incentives that encourage innovation and support productive and entrepreneurial projects. Public sector reform and private sector empowerment also remain below expectations, weakening integration between the two sectors and reducing their contribution to higher productivity.
Yet opportunities remain. Digital transformation and artificial intelligence (AI) open wide prospects for raising efficiency and reducing costs. In agriculture, AI can improve water management, irrigation, and crop monitoring. In health, digital technologies enable early diagnosis and better care. In tourism, smart platforms enhance marketing and visitor experiences. In transport, intelligent traffic systems help reduce congestion. Even in government services, automation tools save time and costs while building citizens’ trust.
The Economic Modernization Vision 2033 recognizes both the challenges and opportunities. It places productivity at the core of its priorities, linking it to education reform, digital transformation, and investment attraction. However, the main challenge is not in setting a clear vision, but in the slow move to execution. Since the vision was launched in 2022, the government spent nearly three years preparing the executive program—a relatively long time compared to the size of the challenges. This delay weakened the ability to boost productivity early and gave citizens the impression that government action is slower than circumstances demand.
While preparing legislation and institutional frameworks was necessary, the extended preparation period missed the chance for faster progress. International experiences show that preparing executive programs usually takes six to twelve months, after which governments move quickly into implementation and performance monitoring. Jordan, however, entered the execution phase late, which slowed productivity gains and reduced the ability to meet growth and employment targets outlined in the vision.
The key question remains: how can this delay be compensated? Restoring momentum is possible by accelerating implementation and focusing on projects with direct impact on productivity, such as education reform, vocational training, SME support, and digital transformation in high-value sectors. At the same time, adopting clear performance indicators and compressed timelines, combined with stronger transparency and monitoring, can help regain lost ground and rebuild citizens’ trust in the government’s ability to deliver results.
Moreover, boosting productivity is not only about achieving economic growth and lowering unemployment. It is also a fundamental pillar of economic resilience. In the face of Israeli attempts to impose displacement on the Palestinian people—which could bring serious security, demographic, and economic challenges for Jordan—building a stronger and more productive economy becomes a national necessity to protect internal stability.
In the end, improving productivity in Jordan is not an optional policy choice. It is the essence of economic and political success. If governments want to maintain society’s trust, they must move quickly from planning to execution and link every step to a timeline and measurable results. This is no longer a matter of administrative preference—it is the essential condition for making the Economic Modernization Vision a tangible reality in people’s lives.
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Productivity and Artificial Intelligence: A Pillar of Economic Resilience and Growth in Jordan
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