Jordan's King Abdullah issued a decree on Thursday forming a new government led by a former World Bank economist and mandated to review a controversial tax system after widespread protests against IMF-driven austerity measures.

Abdullah appointed Omar al-Razzaz, a Harvard- educated economist outside the ranks of the traditional political elite, last week to replace Hani Mulki, a business- friendly politician, who was dismissed to defuse public anger that led to some of the largest protests in years.