The World Bank on Tuesday urged Jordan and other Mideast countries to invest more in their impoverished rural areas instead of relying on subsidies and mega-projects to alleviate inequalities in the region.

The organisation's recommendation, outlined in the overview of a report due out in August, underscored the shifting demographics of the region - one where experts say rapidly expanding economies have shifted governments' focus to urban areas at the expense of the rural lands that for centuries formed the backbone of the region.

The World Bank report gave Jordan mixed reviews, indicating that, on one hand, it possesses fewer economic disparities arising from the urban-rural divide than others, and that a handful of reforms could increase economic prosperity in lagging regions.

The Mafraq Governorate, for example, was singled out as an area lagging behind Amman economically, yet it is only 50 kilometres from economic opportunities in the capital.

According to the report, if the Kingdom were to focus on "levelling the playing field" by investing in education, and increasing the physical and communications connections between Mafraq and Amman, the governorate's economic prosperity would increase.

It further recommended a mixture of policy decisions and targeted investments, rather than big-ticket projects and subsidies, to raise living standards for citizens living in less-developed areas.

“Big spending... is not the answer on its own. We know that from global experience,” Alex Kremer, who authored the World Bank study, said in an interview with the Associated Press. “The benefits are temporary and it’s not cost-effective.”

While primary and secondary educational disparities between urban and rural areas are high in the Middle East and North Africa, the urban-rural divide is not the most significant factor impacting education levels in Jordan.

Economic status is the strongest statistical factor affecting education levels in the Kingdom.

“Put simply, this means that the priority [for Jordan] is to make it easier for poor households to keep their children in school, not building more facilities in poor places,” the World Bank report explained.

On the other hand, it indicated that Jordan, like most of the countries studied, nonetheless has serious inequalities and disparities among its peoples who are related to location.

“For Egypt and Jordan, the data suggest that resource transfers and governorate GDP were not correlated: the highest transfers were not given to the governorates with the weakest economic base,” the report indicated.

Jordan is working on a decentralisation plan that would give regions outside Amman more authority in managing their resources.

In general, citizens of Jordan and the Middle East are quickly moving to cities in search of jobs, though rural areas remain mired with low-level employment and poverty, according to the World Bank. It says countries in the region on average have swung from being 65 per cent rural in 1960 to 65 per cent urban in 2007.

The authors also discussed the dangers posed by roads and traffic, saying that, “the Middle East and North Africa have, by far, the developing world’s most dangerous roads. The situation is particularly worrisome in Morocco, Jordan and the Islamic Republic of Iran”.

The World Bank report outlined a three-pronged approach to reduce the gap between poorer areas, often in the countryside, and more developed parts of the Middle East.

Specifically, it recommends investing in people living in areas that have historically been neglected, such as by providing more education for girls.

The bank also calls for improved links between better-off areas and poorer ones. That includes the creation of improved transportation and trade ties, as well as better communication and computer networks.

“Let’s make sure people who live in lagging areas have access to areas where development can take place,” Kremer told the AP. “That means nowadays, more than ever, public transportation and information technology.”

The bank also calls on governments to coordinate development projects with local leaders and the private sector.

Shamshad Akhtar, the World Bank’s regional vice president, was quoted by the AP as saying the report aims to provide governments with a framework to give residents outside booming cities a chance to share in development gains.

The report, titled “Poor Places, Thriving People: How the Middle East and North Africa Can Rise Above Spatial Disparities”, was released Tuesday in Dubai.

It covers Algeria, Djibouti, Egypt, Iran, Iraq, Jordan, Lebanon, Libya, Morocco, Syria, Tunisia, the West Bank and Gaza, and Yemen. The Arab Gulf states were excluded because their wealthy oil-fuelled economies differ so much from the rest of the region.