Khaberni -
Introduction: Toward a Broader Vision of Welfare Beyond the Gross Domestic Product
Gross Domestic Product (GDP) has long been the most commonly used standard to measure the prosperity level of states. However, this index mostly focuses on the material aspect of living and does not reflect deeper aspects of human well-being such as health, social justice, and environmental sustainability. Thus, the statement by Robert Kennedy over half a century ago still resonates: "The Gross National Product measures everything except that which makes life worthwhile." This statement summarizes the need to adopt more comprehensive and fair assessment tools to reflect people's realities and needs.
In response to these challenges, the Comprehensive Growth Index (IGI) emerged in 2022, with the latest update including data for 2023. This index aims to assess the well-being of states through four main axes:
The economy
Living conditions
Justice and equality
The environment
The index is based on 27 diverse criteria aligned with the United Nations Sustainable Development Goals (SDGs).
Explanation of the four categories:
The economy: includes indicators like per capita GDP, adjusted national income for resource consumption, labor productivity, employment rate, electricity consumption, and exports.
Living conditions: include child mortality rates, access to safe water, education enrollment rates, health coverage, and other quality of life indicators.
Justice and equality: encompass income distribution, gender equality, youth-to-adult ratio, alongside other demographic indicators.
The environment: focuses on carbon dioxide emissions, water use efficiency, protected lands, and energy consumption intensity.
These indicators are collected and calculated using the geometric mean to provide a comprehensive score for each of the 134 countries covered by the index. Although this model offers a broader and deeper vision than the traditional GDP, it is not perfect; the issue of balancing indicator weights admits various viewpoints, and some important elements such as life expectancy or the quality of education or personal safety may not be fully transparent in the final index.
This methodology poses fundamental questions before decision-makers, among them:
Should the focus be solely on achieving economic growth, or is there a parallel need to enhance social justice, protect the environment, and improve living standards?
To what extent can states improve all these aspects simultaneously, or does reality require some compromises?
Can justice and sustainability be achieved only in resource-rich countries, or can developing countries also balance economic growth and human welfare?
It should be noted that this index complements other multidimensional international indices, such as the OECD Better Life Index, the Human Development Index (HDI), the Genuine Progress Indicator (GPI), and the Happy Planet Index (HPI), all of which aim to present a more in-depth and humane picture of community welfare and national development health.
Data indicate that Jordan achieves relatively good results in the areas of equality and improving living conditions, yet it continues to face clear challenges related to economic productivity and environmental sustainability. These disparities reflect structural imbalances in Jordan's economic framework.
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Economic and Political Context – 2025
The year 2025 continued to witness regional instability directly affecting Jordan, especially with the repercussions of the ongoing war in Gaza casting a negative shadow on the tourism sector and increasing the uncertainty in the investment climate. Additionally, new American tariff measures have impacted free trade agreements, particularly the Jordanian-American agreement, resulting in a decrease in export volumes and diminishing investor confidence.
In response to these challenges, the government led by Dr. Jaafar Hassan intensified its efforts to implement the economic modernization vision and the public sector modernization roadmap, supported by His Majesty King Abdullah II, aiming to provide sustainable employment opportunities amid high unemployment rates, which slightly decreased from 21.4% at the end of 2024 to 21.3% at the beginning of 2025.
The economic measures taken at the start of 2025 are beginning to bear fruit, as:
The real Gross Domestic Product registered a growth of 2.7% in the first quarter of 2025, compared to 2.2% in the same period of the previous year.
The inflation rate according to the Consumer Price Index stood at 1.86% until August 2025.
The export coverage ratio for imports reached 51%.
Foreign reserves (including gold and special drawing rights) reached USD 22.758 billion, covering Jordan's imports for 8.7 months, the highest level in five years.
These indicators reflect Jordan's ability to withstand geopolitical pressures and global trade challenges, while continuing to pursue its reform agenda.
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Conclusion
Jordan's experience confirms the importance of relying on multidimensional indices like the Comprehensive Growth Index to assess national welfare realistically and accurately. Despite ongoing challenges related to economic productivity and environmental sustainability, progress in areas of equality, improving living conditions, and maintaining overall stability highlights the potential of long-term reforms.
With continued efforts to align economic strategies with the requirements of social justice and environmental protection, Jordan has a real opportunity to achieve comprehensive and sustainable growth, even in an unstable regional environment.
