Despite the absence of any significant natural resources, Jordan has succeeded in attracting foreign investments through economic reforms and has shown solid economic growth rates. During the reign of Abdullah II, Jordan has generally developed into a competitive and market-based economy, and many steps have been taken to attract foreign investors. The king, aware of the high costs of unrest, met in April 2011 with representatives of various economic sectors to listen to proposals in order to safeguard and improve Jordan´s investment potential as an April 2011 article in The Jordan Times explains. The proposals include, for instance, reducing the cost of residential and commercial construction licenses, increasing the ownership of foreigners and facilitate residency measures and travel visas. The representatives have also suggested the establishment of a duty-free business zone. According to the World Economic Forum World Competitiveness Report 2010-2011, corruption is identified by companies to be only relatively problematic in Jordan, and there are still many factors that are considered to be larger constraints, such as tax regulations and tax rates as well as access to financing and inadequately educated workforce. Nevertheless, according to the World Bank & IFC Enterprise Surveys 2006, 41% of the companies surveyed reported that corruption is a major constraint for doing business, while 18% report that they expect to make informal payments to public officials to get things done.

Occurrences of public-private corruption have been reported in the Qualified Industrial Zones (QIZ), in the Aqaba special economic zone, as well as in relation to the misappropriation of government oil revenues. The government encourages foreign investment, but companies should note that the use of wasta to advance business interests is widespread in Jordan. The 'middle-man' or wasta is, indeed, considered to be the most important 'currency'; one that is considered even more effective than bribes. An article states that wasta is deeply embedded into society and a family obligation which makes difficult for officials to uphold the law. According to a 2007 study by the German Development Institute, business executives with more wasta than others have better access to, for example, public sector services, information on business opportunities, government contracts, tax exemptions and political decision-making. At the same time, positions in the public sector are often assigned based on wasta, a situation that leads to overstaffing and the employment of unqualified staff, thus resulting in public services of poor quality and unnecessary and inefficient administrative procedures. The prevalence of wasta also has an impact on the development of the private sector in Jordan, as companies tend to invest money in social relations that will secure them better wasta, rather than in the quality of their products or services. The use of wasta has in part affected some foreign companies and companies operating in Jordan have reported hidden costs stemming from bureaucracy, red tape, vaguely formulated regulations and conflicting jurisdictions. Nearly 28% of companies surveyed by the World Bank & IFC Enterprise Surveys 2006 identify the practices of competitors in the informal sector as a major business constraint. It is recommended that foreign investors therefore implement integrity systems and carry out extensive due diligence when exploring investment opportunities, looking for partners, and concluding purchases agreements.

Since 1999, Jordan has privatised many of its state holdings. A special committee, the Executive Privatisation Commission (EPC) under the supervision of the Higher Privatisation Council and headed by the Prime Minister, is in charge of selecting and assessing privatisation projects, preparing offers for interested parties, appraising submitted offers etc. Jordan's privatisation programme has been praised by the World Bank for finding a good balance between effectiveness and transparency.

Foreign and local investors are equal before the law. However, companies should note that there are some exceptions with regards to which domains foreign companies can invest in. These include activities pertaining to military and national security, as well as customs clearance services and land transportation. In some sectors and services, such as printing/publishing and maintenance of aircrafts or maritime vessels, foreign companies are only allowed 50% ownership. Jordan offers investment incentives in the form of exemptions on income tax and customs-duties. The level of exemptions varies depending on the geographical area wher investments are made, meaning that investments in the least developed areas receive the highest level of tax exemptions and vice-versa. More information can be found under the Investment Promotion Law of 1995. In a March 2011 article in Al-Dostour, the government is prepared to give exemptions and tax incentives reaching up to 20 and 30 years in an effort to encourage investment and economic growth in Jordan. According to the US Department of State 2011, exemptions will be made in accordance with the value the project as well as to the number of Jordanians employed. It is also stated that an amount of JOD 50,000 (USD 70,000) is required in order for foreign investors to register in Jordan and explains that local and foreign investments are screened by the Jordan Investment Board’s Incentives Committee and that the involvement of government officials in large projects helps to ensure overall governmental cooperation in project implementation. For more information on investment restrictions and incentives, see the US Department of State 2011.

According to the World Bank & IFC Doing Business 2011, Jordan is not ranked among the Arabic region's most efficient regulatory climates, but improvements have been made in relation to getting construction permits and trading across borders; yet procedures for starting a business, registering property, protecting investors and enforcing contracts remain relatively cumbersome. In addition, the US Department of State 2011 reports that the Jordanian government has been working towards making its procurement procedures, regulations and other services more transparent and accessible by promoting e-governance. The implementation of e-government has reportedly been slow, but company registration is now available online on the website of the Jordan Investment Board. Programs to register business, file complaints, and view tax records, existing and pending legislation, and traffic violations are now available online. In addition, a national call centre to answer government service-related questions was opened in 2008. Although numerous procedures have been streamlined, many remain non-transparent and, along with red tape, continue to pose problems to foreign and local investors. According to the World Bank & IFC Enterprise Surveys 2006, senior management can expect to spend an average of nearly 7% of its time dealing with the requirement of government regulations. Most bureaucratic obstacles and delays remain at the level of local government - especially the application of customs, tax and labour laws is arbitrary and acts as an impediment to investment.

Private property is well-defined and protected through sound legal processes, and there are no serious limitations to the acquisition, benefits and sale or use of property. The acquisition of property by foreigners is based on the principle of reciprocity. However, some areas are subject to different provisions and procedures. Expropriation is not permitted unless it is deemed to be in the public interest, in which case fair compensation in convertible currency is then provided to the investor. With regards to the resolution of disputes, Jordanian law stipulates that companies can seek third party arbitration or an internationally recognised settlement of disputes. Jordan is member of the International Centre for the Settlement of Investment Disputes (ICSID) and of the New York Convention of 1958. While some observers have noted the lack of transparency in connection with the settlement of disputes, others report that the judiciary has ruled to the advantage of foreign companies and that the judiciary is not significantly corrupt. Access the Lexadin World Law Guide for a collection of legislation in Jordan.

Individual Corruption

The judicial system is divided into civil, criminal, commercial, security and religious courts. According to Freedom House 2010, the judiciary at the level of civilian courts is generally not corrupt, most trials are open and procedures are respected. However, the Human Rights report in the US Department of State 2010 states that the judiciary can be subject to interference and political pressure by the executive branch and that judges are not always appointed on the basis of merit.

Business Corruption

Lack of transparency with regards to the settlement of disputes has been observed. Yet, Jordanian law provides that foreign investors can seek third party arbitration or an internationally recognised settlement of disputes. Furthermore, the US Commercial Service 2007 reports a case of a foreign company investing in a joint venture with a Jordanian state-owned company being dissatisfied with the management of the contract which was given to a rival without prior consultation. However, the company was able to resolve the dispute to its satisfaction with support from its embassy.

Political Corruption

The Jordanian judicial system is constitutionally independent and according to the Bertelsmann Foundation 2010, the judiciary operates independently on minor issues, but it may be subject to political interference in cases where political influential people are involved. In line with this, Freedom House 2010 indicates that the judiciary is subject to executive influence through the Ministry of Justice and the Higher Judiciary Council (whose members are appointed by the King) because they appoint and transfer judges. The Human Rights report in the US Department of State 2010 further reports that the Judiciary is compromised by allegations of nepotism and the influence of special interests. It is also described as being under the influence of the executive branch that is reportedly able to influence judicial decisions and functions. The report also notes that allegations that the government held detainees and political opposition members as well as that governors continued to use administrative detentions for political reasons were made by different citizens and NGOs.

According to the US Department of State 2010, appointments to the judiciary are not always based on professional merit, and Global Integrity 2008 reports that personal relations may be significant for the entry to the Judicial Institute. In September 2008, the Head of the Royal Court Bassam Awadallah was forced to resign from office partially as a consequence of corruption allegations.

Frequency

The World Bank & IFC: Doing Business 2011:

- Enforcing a commercial contract in Jordan requires a company to go through an average of 38 administrative procedures, taking an average of 689 days at a cost of 31% of the claim.

World Economic Forum: The Global Competitiveness Report 2010-2011:

- Business executives give the Jordanian judiciary's level of independence from influences of members of government, citizens, or companies a score of 4.6 on a 7-point scale (1 being 'heavily influenced' and 7 'entirely independent'), constituting a competitive business advantage for the country.

- Business executives give the efficiency of the legal framework for private companies to settle disputes and to challenge the legality of government actions and/or regulations a score of 4.4 and 4.0 respectively on a 7-point scale (1 being 'extremely inefficient' and 7 'highly efficient'), constituting competitive business advantages for the country.

The World Bank & IFC: Enterprise Surveys 2006:

- 57% of companies surveyed believe the court system in Jordan is fair, impartial and uncorrupted.

- Nearly 17% of companies surveyed identify the functioning of the courts as a major business constraint.

Individual Corruption

Conclusions from the US Department of State 2010 and the Fund for Peace 2006 agree that the police force is not particularly corrupt and that police officers have usually received training in how to avoid corruption.

The report further states that the police has forcibly entered the homes of foreign migrant workers with valid work and residency permits without warrants, as part of a joint police and labour inspection campaign designed to verify the legal status of workers. This is despite the fact that the law requires a warrant from the prosecutor general or a judge before security forces can conduct a search.

Political Corruption

The Jordanian national police, the Public Security Directorate (PSD), re not significantly corrupt, but allegations of impunity are frequently made against the PSD. According to the Human Rights report of US Department of State 2010, complaints against the PSD, gendarmerie, and GID can be filed with the NCHR or NGOs (for example the Arab Organisation for Human Rights AOHR). The PSD's preventive security office is tasked with investigating allegations of police corruption. The PSD and gendarmerie try their personnel internally with their own courts, judges, and prosecutors, in a manner not transparent to the public. It is also noted that the government do not thoroughly investigate nor punish all complaints about corruption or abuses by security forces, and there are widespread allegations of impunity among the police.

Frequency

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give the reliability of Jordanian police services to enforce law and order a strong score of 5.7 on a 7-point scale (1 being 'cannot be relied upon at all' and 7 'can always be relied upon'), representing a competitive business advantage for the country.

Business Corruption

Companies wishing to invest in Jordan should note that obtaining licences is not particularly burdensome. Although facilitation payments may be required when obtaining licences and permits, it is less widespread than in other countries in the region.

According to the OECD National Investment Reform Agenda - Jordan 2006, a bribery case was referred to the court in 2002 involving owners of contracting companies who attempted to bribe an employee at the Jordan Electric Power Company in order to have the company’s electricity bills reduced.

Frequency

The World Bank & IFC: Doing Business 2011:
- Starting a company requires the entrepreneur to go through 8 procedures, taking 13 days at a cost of 44.6% of income per capita.

- It takes 19 procedures, 87 days at 634.1% of the income per capita to obtain the necessary licences and permits, notifications and inspections and public utility connections to build a warehouse.

- It takes an average of 4.3 years to close a business at a cost of 9% of the estate.

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give government administrative requirements (permits, regulations, reporting) in Jordan a score of 3,5 on a 7-point scale (1 being 'extremely burdensome' and 7 'not burdensome at all'), constituting a competitive business advantage for the country.

The World Bank & IFC: Enterprise Surveys 2006:
- Senior management can expect to spend an average of nearly 7% of its time dealing with the requirements of government regulations.

- A little more than 9% of companies surveyed identify business licensing and permits as a major business constraint.

- 18% of companies surveyed report that they expect to make informal payments to public officials to get things done.

- 2.5% of companies are expected to give gifts to get an operating licence.

- 7% of companies expect to give gifts to obtain a telephone connection, while 4.5% expect to do so to obtain a water connection and 9% for an electrical connection.

- 12% of companies expect to give gifts to obtain a construction permit.

- 6 days are required to obtain an operating licence and 44 days are required to obtain a construction-related permit.

Individual Corruption

Private property rights are guaranteed in the constitution and safeguarded in practice. Expropriation of private property is rare.

Business Corruption

Companies should note that the number of procedures and cost of registering property are high both by regional average and compared to OECD countries. On the other hand, the time requested to register property is very low compared to the regional and OECD averages.

Political Corruption

Reports by Freedom House 2010 and a 2005 article by The Nation indicate persisting rumours and accusations of royal land grabs carried out by classifying state or municipal land as Crown land.

Frequency

The World Bank & IFC: Doing Business 2011:
- Registering property requires a company to go through an average of 7 administrative procedures taking an average of 21 days at a cost of 7.5% of the property value.

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give the protection of property rights in Jordan, including financial assets, a score of 5.4 on a 7-point scale (1 being 'very weak' and 7 'very strong'), representing a competitive business advantage for the country.

Individual Corruption

According to Global Integrity 2009, the use of wasta in the collection of income taxes discriminates against low income households and those who lack connections to influential people in the system.

Business Corruption

According to Global Integrity 2009, the collection of taxes is flawed with wasta, favouritism, and the misuse of political power. Small companies lacking connections to people with political influence are often subjected to an arbitrary application of the Value Added taxes. On the other hand, companies with the proper political connections will often not be held accountable for tax evasion and might often be exempted from paying taxes.

Political Corruption

Freedom House 2010 reports that the tax administration is to some extent subject to political interference.

Frequency

The World Bank & IFC: Doing Business 2011:
- A company spends an average of 101 hours per year making 26 separate tax payments at a total tax rate of 31.2% of profits.

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives perceive tax regulations and tax rates as the two most problematic factors for doing business in Jordan.

The World Bank & IFC: Enterprise Surveys 2006:
- Only 1% of companies state that they are expected to give gifts when meeting with tax inspectors.

Business Corruption

Customs procedures have been identified by Info-Prod as a serious impediment to trade. This is caused by overlapping areas of authority, many signature clearances and excessive paperwork. Written regulations vary from actual practices and discretionary decisions are carried out, sometimes regarding cases that are subject to conflicting instructions and regulations. 

Frequency

The World Bank & IFC: Doing Business 2011:
- A standard export shipment of goods requires 7 documents and takes 14 days at an average cost of USD 825 per container.

- A standard import shipment of goods requires 7 documents and takes 18 days at an average cost of USD 1,335 per container.

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give the efficiency of customs procedures (formalities regulating the entry and exit of merchandise) in Jordan a score of 4.5 on a 7-point scale (1 being 'extremely inefficient' and 7 'extremely efficient'), representing a competitive business advantage for the country.

The World Bank & IFC: Enterprise Surveys 2006:
- 1.5% of companies are expected to give gifts to get an import licence.

Business Corruption

The process and selection of awarding public work contracts and private-public initiatives is determined less by merit and more by connections and political necessities. A centralised tendering office displaying government tenders and relevant legislation can be accessed online and tenders are publicised, but the process of deliberation and criteria lacks transparency. There have been reports of the use of wasta regarding procurement. In general, the use of family and business connections to advance personal business interests is very widespread.

In 2010, former Finance Minister Adel Al-Qadah, wealthy businessman Khaled Shaheen, the Prime Minister´s economic adviser Mohammed Al-Rawashdeh, and former petroleum official Ahmed Al-Rifai were arrested over allegations of bribery and abuse of office in the contracting of Jordan´s petroleum refinery. A March 2010 article in Reuters writes that illegal means were employed in order to attract strategic allies to invest in the expansion of Jordan´s sole petroleum refinery; a project that was estimated at a cost of USD 1.2 million. Legal sources in the same report state that officials received bribes for the sake of slowing the process of procurement so that competitors were forced to withdraw.

Read more about public procurement under the 'Public Anti-Corruption Initiatives' in the Initiatives section.

Political Corruption

According to US Department of State 2010, there have been allegations of influence peddling and lack of transparency in government procurement.

Read more about public procurement under the 'Public Anti-Corruption Initiatives' in the Initiatives section.

Frequency

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give the diversion of public funds to companies, individuals, or groups due to corruption a score of 4.3 on a 7-point scale (1 being 'very common' and 7 'never occurs'), constituting a competitive business advantage for the country.

- Business executives give the favouritism of government officials towards well-connected companies and individuals when deciding upon policies and contracts a score of 3.5 on a 7-point scale (1 being 'always show favouritism' and 7 'never show favouritism'), constituting a competitive business advantage for the country.

The World Bank & IFC: Enterprise Surveys 2006:
- 2% of the companies are expected to give gifts to secure a government contract.

- The value of a gift expected to secure a government contract is 0.14% of the contract value.

Political Corruption

According to Freedom House 2006, the government's revenues stemming from its sale of oil are unknown to the public. Kuwait and Saudi Arabia have provided Jordan with oil at favourable prices. Jordan has apparently exported oil products, while Jordanian citizens have absorbed the significant rises in the price of domestic gasoline since 2004. There is a general lack of transparency regarding how income from exports and foreign aid are spent in Jordan, since public access to government budgets and expenditures is limited. Where access to the budget is possible through the parliament, only a limited amount of data is provided to the public.

• Legislation: Corruption is criminalised in Jordan and active corruption is penalised under article 172 of the Penal Code of 1970. Jordan has an Anti-Corruption Commission Law (in Arabic) which was enacted in December 2006. This law defines corruption not only as misuse of power and economic crime, but it also includes actions related to wasta and nepotism. A Financial Disclosure Law published in the official gazette in November 2006, stipulates that specified government officials must disclose their assets in a sealed envelope that is to be opened by the Chief Justice in case of complaint. The Jordanian Parliament also passed an Access to Information Law in April 2007, although this is somewhat restricted by the State Secret and Documents Law. Furthermore, an Anti-Money Laundering Law was passed on 6 May 2007. Jordan ratified the UN Convention Against Corruption in February 2007. Access the Lexadin World Law Guide for a collection of legislation in Jordan. A new competition law is expected to be passed in Parliament in 2011. The US Department of State 2011 states that the law, which is a modified version of the Competition Law of 2004, aims to attract foreign investment and protect small- and medium -sized businesses from restrictive anti-competitive practices. In 2010, Jordan amended the Anti-Money Laundering Law in order to include areas of non-compliance.

• Government Strategies: In August 2008, the Anti-Corruption Commission (ACC) published the National Anti-Corruption Strategy 2008-2012, which was prepared by the ACC in coordination with the Planning Ministry and a group of experts provided by the EU. The strategy comprises several components such as strengthening the capacity of the ACC, simplifying the business environment, reforming the public sector, training of public officials, awareness raising and reviewing anti-corruption legislation, and an action plan to implement the strategy has been made. In line with the stipulations of the strategy a coordination committee has been established, including members of the ACC, the Ombudsman Institution and the Audit Bureau who shall secure greater cooperation between the three institutions. To avoid corruption on governmental level, the former Rifai government signed a Code of Conduct based on the constitution and the law. The Code of Conduct requires ministers to put aside personal interests when performing their duties, to submit a financial disclosure statement and it forbids them to hold seats on the board of private companies, to take part in commercial or financial business or to receive any salary from a third part. Ex-Prime Minister Samir Rafai announced in January 2011, that the government would provide JOD 160 million in salary increase to pensioners and workers in the civil and military services as well as to municipality and public companies´ employees. He also confirmed that the government had initiated serious discussions with private sector to create a national fund in order to support low-wage workers in the private sector. In a serious attempt to minimize bureaucracy, the Prime Minister stated that municipalities are to be merged in order to shorten administrative processes.

• Anti-Corruption Agencies: The Anti-Corruption Commission Law calls for the establishment of an Anti-Corruption Commission (ACC). The members of the ACC were appointed in March 2007. The law stipulates that the ACC must be financially and administratively independent and conduct its work free from executive interference. The ACC has issued a statement saying that it will concentrate on investigating allegations of misuse of public funds. It is supposed to issue an annual report on its work. According to Global Integrity 2009, no reports have been issued so far, and it is reported that the ACC is not entirely free from political interference in practice. According to the US Department of State 2011, the ACC prosecuted its first case in 2010 and has several other cases under investigation. In an April 2011 article in Jordan Times, the Anti-Corruption Agency president states that more than 41% of the cases looked into by the Commission focus on exploitation of public post, 11% of them were focus on forgery, 10% on embezzlement of public money, 8,2% on abuse of office and 4% on fraud. The ACC president, Samih Bino, states that the commission is directing its efforts towards addressing the roots of corruption such as the complicated legislation and weak anti-corruption investigations, thus minimizing the potential of corrupt behaviour. He also notes that the number of corruption cases in 2010 grew to 890 which made efforts to fight the former imperative. Some local observers, however, are still sceptical about the effectiveness the ACC due to the limited amount of investigations involving senior officials or large government projects despite allegations of corruption.

• General Intelligence Directorate (GID): The GID also has an anti-corruption office, the Anti-Corruption Directorate, which is in charge of dealing with cases of extortion, bribery and corruption. The GID has itself been involved in numerous scandals, but there were no major corruption indictments in 2004 and 2005.

• Office of the Ombudsman: The Ombudsman institution is newly created in Jordan (end of 2008) and its activities were set to start in February 2009. According to Global Integrity 2009, the institution is not fully protected from political interference since the Ombudsman is nominated by the Prime Minister. Several other organisations carry out the functions of the national ombudsman, such as the National Center for Human Rights and the Higher Council for Media, which acts as ombudsman for media issues and the Audit Bureau (see below). The National Center for Human Rights and the Higher Media Council do enjoy political independence, but their ability to remain independent depends on the character and strength of the president of each entity.

• Auditor-General: The Audit Bureau of the Hashemite Kingdom of Jordan is the main audit institution. It was established by Law 28 of 1952. The Audit Bureau is an independent institution - both financially and administratively - within the government. It monitors government earnings and expenditures at various levels, namely the ministerial, public enterprises, local authorities, municipalities and rural councils. The agency submits a bimonthly report to the cabinet and a yearly report to the lower office of the Parliament with its finding. According to Global Integrity 2009, the Auditor General is, however, not mandated to launch investigations on its own and observers have noted that the government has not acted upon the Auditor General's findings.

• E-Governance: Initiatives in the area of e-governance have contributed to rendering government services more transparent and more accessible. The US Department of State 2011 reports that the government has slowly but gradually been implementing its e-government promotion strategy in 2010. Several programs as well as a call centre are now available as a response to the government's promise of making public services, regulations and procurement procedures more transparent. Companies will find numerous government websites providing them with useful information on regulations, services offered by the government and different government bodies.

• Public Procurement: Public procurement of all government departments is regulated by the General Supplies Department of the Ministry of Finance (Supply Act 32 of 1993). In law there is a requirement of competitive bidding, but information about tenders is not always disseminated to the private sector. Unsuccessful bidders may challenge the procurement decision through a court case. According to Global Integrity 2009, bidders who violate the procurement regulations (and who are convicted by a court ruling) by engaging in corrupt practices to influence the procurement decision will be prohibited from bidding in the future. However, observers report that there are very few examples of this. Furthermore, the US Department of State 2009 reports that influence peddling and lack of transparency in government procurement exists. Jordan has a centralised tendering office where tenders are publicised.

• Whistle-Blowing: The Anti-Corruption Commission Law 62/2006 only provides for indirect protection of whistleblowers by stipulating that the information and documentation the latter provide may be secret. According to the President of the Anti-Corruption Commission (ACC), whistleblowers that address the ACC need not fear repercussions. However, there are concerns whether whistleblowers protection will be upheld in practice, especially since it is commonly known in Jordan that complaining about an influential person or family often lead to recriminations. It remains to be seen if the ACC will be able to enforce whistleblower protection in practice.

• General Comments on the Public Anti-Corruption Initiatives: The political will in Jordan for countering corruption is generally strong. Jordan is in the process of implementing the provisions set out by the United Nations Convention against Corruption (UNCAC), such as the establishment of an anti-corruption commission, protection of whistleblowers and freedom of information laws. All three initiatives have been formally established, but it is too early to verify how they work in practice and how far-reaching their scope of action and impact will be. However, the demonstrations that have taken place in Jordan, throughout the beginning of 2011, clearly convey public discontent with corruption levels in the government. Thus, fighting corruption is now a priority on the political agenda.

• Media: According to many observers, the media is either suppressed from speaking out about corruption or co-opted. Journalists are reportedly often bribed by the authorities to write favourable stories. The government officially proclaims its commitment to press freedom and freedom of expression, and has relinquished its monopoly on radio and television outlets and has issued a number of private broadcasting licences. Nevertheless, Freedom House 2010, along with other observers, indicates that the media in Jordan is mainly under state control and that independent journalists are often harassed and induced to practice self-censorship. Freedom of expression is relatively well-established in Jordan, so long as it is practiced within certain boundaries and does not, for example, discredit the royal family, foreign policy and foreign relations or mention corruption within the inner circles of power. The authorities have posted informers at printing presses; these informers regularly report to the government about offensive articles in the pipeline. The government can close print publications and ban books. The report also states that the government has given free rein to intelligence officials, police, and prosecutors to clamp down on undesirable speeches in 2009. Jordan's 1993 Press and Publications Law regulates freedom of expression and all publications are to be licensed by the government. The law also establishes the boundaries within which journalists can work - Article 150 of the Penal Code and other laws criminalise criticism of the royal family, slander of government officials and speech that harms Jordanian foreign relations, inflames religious sensitivities and undermines the state's reputation. Corruption in the higher circles of the political-administrative structures is another topic that is controversial for journalists to report about. Poet Haider Mahmoud and his family were harassed (his son had to resign from his position) for publicly, through a poem, speaking against corruption within the royal family. An ex-parliamentarian was also arrested for criticising corruption online. The government claims that access to internet is unrestricted, but according to observers several websites have been blocked, especially news sites. Reporters Without Borders 2011 ranks Jordan 112th out of 175 countries, while Freedom House 2010 ranks the country 140th out of 196 countries and describes its press environment as 'not free'. One might expect that unrest and the harsh criticism, expressed by the public, taking place in Jordan in the beginning of 2011 has reflected positively on the freedom of journalism and speech. However, Reporters Without Borders 2011 notes that freedom of speech remain under numerous restrictions despite legislative reform as well as positive statements from the king.

• Civil Society: NGOs are registered at the Ministry of Social Development which regulates their activities. They must obtain governmental approval to be able to operate. There are many civil society organisations, but they are weak and only entitled to work in their specialised area. The NGOs are prohibited from participating in political activities and, if they are deemed subversive by the authorities, their licences are instantly withdrawn. A new law has been passed in 2008 stipulating, amongst other, that NGOs must apply and get approval from the cabinet to receive foreign funding.

• Jordan Transparency Society (JTS): JTS is a NGO bringing together lawmakers, activists and business leaders with the aim of promoting a culture of transparency in Jordan and raising public awareness about the importance of fighting corruption. JTS was launched in July 2009 with the intention to conduct field studies and surveys and issue an annual report assessing the Jordanian government's efforts to fight corruption.

• Arabian Alliance for Combating Corruption (AACC): The AACC is an alliance of CSOs dedicated to fight corruption. It comprises several Arab countries, including Jordan, and is headed by the Yemenite Human Rights Information and Training Center (in Arabic). The main aim of the AACC is to raise awareness about the risks of corruption and to enhance the role of CSOs in combating it. The AACC is organising capacity building sessions to empower CSOs in their fight against corruption.

The websites listed below provide useful facts on Jordan as well as contacts and tools for companies operating in Jordan:

• International Finance Corporation: Global SME Toolkit
  Guide to sustainable business management practices for SMEs.
• Business Fighting Corruption
  An online resource centre for business on collective action to avoid corruption which contains a guide and resources for partnerships with companies and other stakeholders to fight against corruption.
• CIA World Factbook: Jordan Profile
• World Bank: Jordan Data Profile

Sources for further reading:

• US Department of State: Investment Climate Statement - Jordan 2011.
• The Bertelsmann Foundation: Transformation Index - Jordan 2010.
• Freedom House: Countries at the Crossroads - Jordan 2010.
• Global Integrity: Jordan Country Profile 2009.

UNCAC Status: Signed 9 December 2003. Ratified 24 February 2007.

Status on UNCAC Implementation
This field describes the country's status on the United Nations Convention against Corruption. Please note any declarations and reservations made upon ratification. The list of signatories can be found on the UNODC website. Read more about the UNCAC.

Other Relevant Conventions or Treaties:

• United Nations Convention against Transnational Organized Crime: Signed 26 November 2002. Not Ratified.
  Read Transparency International's summary and assessment of the convention.

Transparency CPI: 2011: 56/182 (Score: 4.5)

Transparency CPI
This field consists of the score for the country in question on the Corruption Perceptions Index from Transparency International as well as its ranking.

World Bank CORR Index (-2.5 - +2.5): 2010: +0.04

World Bank Corruption Index

This field consists of the score for the country in question on the 'Control of Corruption' indicator in the World Bank Governance Research Indicator Country Snapshot (GRICS): 1996-2010.

OECD Country Risk Classification (0-7): 2011: 5

Country Risk Classification
The classification of countries by risk category has the aim of providing OECD countries with a basis for calculating the premium interest rate to be charged to cover the risk of non-repayment of export credits. Countries are placed in risk categories 0 - 7, with 0 being the lowest risk category and thus the least expensive. Conversely, premium group 7 is the highest risk category. Each classification is comprised of 2 components: 1) an assessment of the country's economic/financial situation, and 2) its overall political stability. Access the complete list of OECD Country Risk Classification figures.

Data Verification:

Latest update: June 2011

Data verified by: Global Advice Network

General Information Sources

• The World Bank & IFC: Doing Business 2011.
• US Department of State: Investment Climate Statement Report - Jordan 2011.
• Jordan Times: 'Businessmen propose action plan to stimulate economy' 19 April 2011.
• Jordan Times: 'ACC investigates around 400 cases in three months', 22 April 2011.
• Al-Dostour:'beneficial incentives for investors', March 2011.
• Foreign Policy: 'Jordan´s king doesn´t want to play domino', January 2011.
• The Bertelsmann Foundation: Transformation Index - Jordan 2010.
• The Heritage Foundation: Index of Economic Freedom - Jordan 2010.
• Freedom House: Countries at the Crossroads - Jordan 2010.
• The Jordan Times: 'Greater Amman Municipality confirms embezzlement case', 3 January 2010.
• World Economic Forum: The Global Competitiveness Report 2010-2011.
• Freedom House: Freedom in the World -Jordan 2010.
• The Jordan Times: 'Majority confident in Rifai gov't - poll', 21 December 2009.
• Earth Times: 'Jordan's new premier vows to fight corruption', 16 December 2009.
• Earth Times: 'Jordan's king endorses formation of new cabinet', 14 December 2009.
• Reuters: 'Jordan's king appoints new PM, government quits', 9 December 2009.
• The Jordan Times: 'Despite gov't measures, wasta still widespread in Jordan - study', 9 December 2009.
• The Jordan Times: 'GAM to tackle department corruption', 23 July 2009.
• The Jordan Times. 'Over 400 corruption cases probed in first half of 2009', 16 July 2009.
• The Bertelsmann Foundation: Transformation Index - Jordan 2008.
• The German Development Institute: The impact of favouritism on the business climate. A study on wasta in Jordan - 2007.
• US Commercial Service: Doing Business in Jordan: A Country Commercial Guide for US Companies 2007.
• The American Chamber of Commerce in Jordan: What businesses say about the business environment in Jordan - 2007.
• Arab News: 'Islamists in Jordan cry foul after poll setback', 22 November 2007.
• The Economist: Islamists' electoral disaster, 22 November 2007.
• Jordan Times: 54% of eligible voters cast ballots in 'smooth' elections, 21 November 2007.
• Al Jazeera: 'Jordan opposition cries foul', 20 November 2007.
• BBC News: 'Jordan's struggle with Islamism', 19 November 2007.
• The New York Times: 'Jordan, fearing Islamists, tightens grip on elections', 11 November 2007.
• The World Bank & IFC: Enterprise Surveys 2006.
• Freedom House: Countries at the Crossroads - Jordan 2006.
• UNDP: POGAR (Programme on Governance in the Arab Region).
• University of Jordan, Centre for Strategic Studies: Corruption issues in Jordan; a public field survey 2006.
• The Oxford Business Group: Jordan Country Profile.
• The Nation, Stephen Glain: Letter from Jordan, 30 May 2005.
• UNDP: Jordan Human Development Report - 2004.

Corruption Levels Sources

Judicial System

• The World Bank & IFC: Doing Business 2011.
• World Economic Forum: The Global Competitiveness Report 2010-2011.
• US Department of State: Investment Climate Statement - Jordan 2011.
• Freedom House: Freedom in the World - Jordan 2010.
• Freedom House: Countries at the Crossroads - Jordan 2010.
• The Bertelsmann Foundation: Transformation Index - Jordan 2008.
• Global Integrity: Jordan Country Report 2008.
• US Commercial Service: Doing Business in Jordan: A Country Commercial Guide for US Companies 2007.
• The Fund for Peace: Jordan Country Profile 13 July 2007.
• The World Bank & IFC: Enterprise Surveys 2006.

Police

• World Economic Forum: The Global Competitiveness Report 2010-2011.
• US Department of State: Human Rights Report - Jordan 2010.
• The Fund for Peace: Jordan Country Profile.

Licences, Infrastructure and Public Utilities

• The World Bank & IFC: Doing Business 2011.
• World Economic Forum: The Global Competitiveness Report 2010-2011.
• OECD: National Investment Reform Agenda - Jordan 2006.
• The World Bank & IFC: Enterprise Surveys 2006.

Land Administration

• The World Bank & IFC: Doing Business 2011.
• The Heritage Foundation: Index of Economic Freedom - Jordan 2010.
• Freedom House: Countries at the Crossroads - Jordan 2010.
• World Economic Forum: The Global Competitiveness Report 2010-2011.
• Freedom House: Freedom in the World - Jordan 2008.
• Freedom House: Countries at the Crossroads - Jordan 2006.
• The Nation: 'Letter from Jordan', 30 May 2005.

Tax Administration

• The World Bank & IFC: Doing Business 2011.
• Freedom House: Countries at the Crossroads - Jordan 2010.
• World Economic Forum: The Global Competitiveness Report 2010-2011.
• Global Integrity: Jordan Country Report 2009.
• The World Bank & IFC: Enterprise Surveys 2006.

Customs Administration

• The World Bank & IFC: Doing Business 2011.
• The Heritage Foundation: Index of Economic Freedom - Jordan 2010.
• World Economic Forum: The Global Competitiveness Report 2010-2011.
• Global Integrity: Jordan Country Report 2008.
• Info-Prod Research Ltd: 10 July 2007.

Public Procurement and Contracting

• World Economic Forum: The Global Competitiveness Report 2010-2011.
• Reuters: 'The contracting of Jordan´s petroleum refinery' (in Arabic), March 2011.
• Freedom House: Freedom in the World - Jordan 2007.
• The World Bank & IFC: Enterprise Surveys 2006.
• Freedom House: Countries at the Crossroads - Jordan 2006.

Environment, Natural Resources and Extractive Industry

• Freedom House: Countries at the Crossroads - Jordan 2006.

Public Anti-Corruption Initiatives Sources

• Jordan Directions: 'Coordination panel set up to help fight corruption', 3 January 2010.
• US Department of State: Investment Climate Statement - Jordan 2011.
• Global Integrity: Jordan Country Report 2009.
• The Jordan Times: 'Gov't pledges integrity, signs code of conduct', 18 December 2009.
• The Bertelsmann Foundation: Transformation Index - Jordan 2008.
• Global Integrity: Jordan Country Report 2008.
• The Jordan Times: 'Strategy seeks to educate public on corruption', 28 August 2008.
• Global Integrity: Jordan Country Report 2007.
• OECD: National Investment Reform Agenda - Jordan 2006.
• The Bertelsmann Foundation: Transformation Index - Jordan 2006.
• Freedom House: Countries at the Crossroads Jordan - 2006.
• UNDP: POGAR (Programme on Governance in the Arab Region).
• Transparency International: National Integrity Systems Country Study Report Jordan 2001.

Private Anti-Corruption Initiatives Sources

• Reporters Without Borders: Jordan Country Report 2011.
• Freedom House: Freedom of the Press Index 2010.
• Reporters Without Borders: Worldwide Press Freedom Index 2009.
• The Jordan Times: 'New society to tackle corruption, encourage transparency', 27 July 2009.
• Yemen Observer: 'Arabian Alliance for combating corruption announced in Sana'a', 27 January 2009.
• The Bertelsmann Foundation: Transformation Index - Jordan 2008.
• Global Integrity: Jordan Country Report 2008.
• Freedom House: Freedom of the Press - Jordan 2010.
• Reporters Without Borders: 'Ex-parliamentarian arrested for criticising corruption online', 14 May 2007.
• Human Rights Watch: 'Release critic charged with slander', 22 May 2007.
• The Bertelsmann Foundation: Transformation Index - Jordan 2006.
• UNDP: POGAR (Programme on Governance in the Arab Region).