Jordan’s Shadow Economy: How Wasta and Nepotism Shape the Country

Behind the facade of a seemingly stable democracy, Jordan’s economy is plagued by a pervasive culture of corruption, nepotism, and organized crime.

A Systemic Problem

Corruption is rampant in Jordan, with high-ranking officials and companies frequently involved in illegal activities. Despite laws criminalizing corruption, impunity remains a significant issue. The government has taken steps to address the problem, but its efforts have been limited by nepotism and lack of accountability.

• Citizens often rely on personal connections to access public services, making them vulnerable to organized crime.
• The country’s reliance on foreign assistance and aid also creates opportunities for corruption.

Security Concerns

Jordan’s security relationships with its neighbors are a concern, particularly its recent improvements with Syria. The country struggles to control its porous borders, which provide hotbeds for traffickers and terrorist groups.

• The government has taken steps to combat human trafficking, drug trafficking, and arms smuggling, but the effectiveness of these efforts is limited by the inefficiency of the justice system and corruption within law enforcement agencies.

Economic Challenges

Jordan’s economy is facing significant challenges, including high levels of debt, unemployment, and poverty. The informal sector is a major part of the economy due to high taxes, leading to increased taxation pressure on formal sector businesses.

• The country has struggled to prevent money laundering and terrorist financing, resulting in its inclusion on the Financial Action Task Force’s (FATF) gray list.
• Efforts to monitor financial institutions and ensure compliance with regulations are underway, but challenges persist.

Civil Society Under Pressure

Despite the presence of civil society organizations, media freedom remains limited in Jordan. There have been reports of government restrictions on individuals and organizations criticizing the authorities, leading to self-censorship in the coverage of sensitive issues.

• The victim and witness protection schemes are also inadequate, with victims often treated poorly and subject to arrest, imprisonment, and deportation for crimes committed as a result of being subjected to trafficking.

Conclusion

Jordan’s economy is plagued by corruption, nepotism, and organized crime. The country’s reliance on foreign assistance and aid creates opportunities for corruption, while its porous borders provide hotbeds for traffickers and terrorist groups.

• The government’s efforts to combat these issues are limited by the inefficiency of the justice system and corruption within law enforcement agencies.
• Civil society organizations operate under pressure, with media freedom limited and self-censorship prevalent.

Until significant reforms are implemented, Jordan will continue to struggle with these systemic problems, undermining its stability and prosperity.