Abstract

Declining economic growth in Jordan, rising unemployment and the abolition of state support for certain segments of the population have led to a deterioration in the welfare of the middle class in Jordanian society. The importance of the middle class for the country is due to the fact that they act as a driving force in creating a market economy, as well as implement creative and intellectual work. The article considers the essential importance of the middle class and its role in building a democratic and legal state, as well as in ensuring a stable pace of economic development. The purpose of this article is to analyze the level of decline in the middle class in Jordanian society during 2010-2017. The following indicators were used to conduct this study: average annual income, double the national poverty line and the share of the population that receive an average of 60% of income. The source of statistical information was the data of the World Bank and the General Statistics Department of Jordan. The author of the article proposes to calculate a generalized indicator for the characteristics of the middle class in society – the average annual household income index. The study showed that during 2010-2017 there was a significant reduction in the size of the middle class in Jordan. The author suggests that such negative dynamics will persist in the coming years, especially given the decline in economic activity due to the coronavirus pandemic. It is proved that the inefficiency of state economic and social policy has led to an increase in the number of poor people, as well as rising unemployment in the country. According to the results of the study, it is proposed to adjust government programs to ensure the preservation of the middle class and enable it to realize its potential in stimulating economic growth, human capital development and supporting the development of civil society in Jordan.

Keywords: middle class, welfare economics, income distribution, economic development, public policy.

JEL Classification: I3.

Cite as: Aljaloudi, J. (2021). The Decline Of The Middle Class In Jordan. SocioEconomic Challenges, 5(1), 28-34. https://doi.org/10.21272/sec.5(1).28-34.2021

This work is licensed under a Creative Commons Attribution 4.0 International License

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