Designing acceptable and effective subsidy reforms: Lessons for water tariff reform in Jordan
This policy brief explores how to implement politically viable and effective water tariff reforms in Jordan by drawing on global and regional lessons from
three case studies. Lessons from the Middle East and North Africa (MENA) underscore that the success of subsidy reform depends on gradual implementation, transparent communication, and targeted support to build trust and mitigate public backlash.
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Hickey-Policy-Brief-July-2025.pdf
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- Successful subsidy reforms depend on clearly explaining the downsides of the current system and the benefits of reform.
- Coupling reforms with strategies to redistribute savings or directly support low-income and vulnerable groups increases fairness and public acceptance.
- Phased reforms give citizens time to adjust and reduce the risk of sudden unrest. Automatic pricing mechanisms can depoliticise price hikes and enhance policy credibility.
- When citizens trust the government, perceive service delivery as high quality, and believe others are also complying, they are more willing to accept higher tariffs.
- Early reforms in Morocco and Iran show how transparency and compensation can ease reform, while Saudi Arabia and Iran's 2019 failures highlight the dangers of abrupt implementation without communication.
This policy brief examines how to design politically acceptable and effective subsidy reforms, focusing on water tariff reform in Jordan.
Drawing on regional experiences and global best practices, it emphasises the importance of gradual implementation, transparent communication, and targeted support to build trust and mitigate public backlash.