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Jordan
Please note: All linked documents are in PDF format
| Objective |
SO Number |
FY 2004 |
FY 2005 |
FY 2006 |
| Water Resources Management | 278-008 |
39,600 |
50,000 |
45,000 |
| Social Sector Development and Governance | 278-009 |
32,850 |
37,500 |
43,000 |
| Economic Opportunities for Jordanians | 278-010 |
37,550 |
42,500 |
42,000 |
| Cash Transfer | 278-011 |
238,525 |
118,000 |
120,000 |
|
Total (in thousands of dollars) |
348,525 |
248,000 |
250,000 |
|
The Development Challenge: Jordan continues to play a vital role in the Middle East as both a key U.S. ally in the war on terror and a model of reform for the rest of the Arab world. This role is enhanced by the strong will and dynamism of King Abdullah II, who has actively promoted major reform initiatives in all sectors to create a better future for Jordanians. However, the Jordanian economic, political, and social sectors are still very vulnerable to regional developments, particularly in Israel and the Palestinian Territories and Iraq.
In this overall context, the Government of Jordan (GOJ) has forged ahead with economic reform. Recent figures show 7.2% growth for the first half of 2004. However, with unemployment at 12.5% and 68% of Jordan's population under the age of 25, economic growth must maintain a swift pace to ensure that the standard of living improves. Also significant for economic growth is Jordan's external debt of approximately $7.3 billion, or 67.7% of gross domestic product. This debt has been declining but is still quite large.
Jordan has also expressed increasing interest in improving democracy and governance. In October 2003, the GOJ launched an ambitious set of political reforms aimed at promoting greater press freedom, decreasing corruption, and promoting greater civil society participation in the public realm. Under this agenda, democratic reform is seen as a tool to maintain stability and engender support for ongoing economic structural adjustment.
Serious social challenges clearly exist in Jordan. First, Jordan's growing population has now reached 5.29 million. While the total fertility rate has declined to 3.5%, with a population growth rate of 2.5% the population is still expected to double by 2026. Second, although literacy rates are high at 90%, most schools do not provide students with the skills they need for work. Third, the vast majority of early childhood education services are provided by the private sector and only affordable by the upper classes. This overall situation underscores the gap between Jordanians that are able to participate in the modern economy in all its forms, including education, and those Jordanians that have yet to see the benefits from Jordan's reform agenda.
The anticipated population increase will also place a tremendous strain on Jordan's limited water resources. In fact, water is scarce throughout the Middle East, and will be a critical issue for peace and stability for decades to come.
The USAID program advances U.S. interests by targeting the priorities of Embassy/Amman's Mission Performance Plan. These priorities include combating terrorism, increasing economic growth, promoting democratic practices and better health care, and increasing water supplies. The two highly critical U.S. foreign policy and Congressional priorities of democracy and education are prominent in our new social sectors program. Also, USAID/Jordan's new focus on public outreach is creating an understanding of the benefits that Jordan's partnership with the United States brings to the Jordanian people.
The USAID Program: USAID/Jordan is requesting FY 2005 and FY 2006 funds for four objectives that focus on: increasing water supplies and using existing water resources better; improving economic opportunities for all Jordanians through private sector development; fostering the democratic process; improving Jordan's educational system; and improving primary and maternal health care.
Throughout USAID's program, the GOJ, the private sector, and the non-governmental organization (NGO) community are heavily involved. Specifically, USAID maintains a strong partnership with the GOJ. Indeed, our close cooperation with the Jordanian Government, led by the reform agenda of King Abdullah II, has ensured that major reform initiatives in all sectors are helping to transform Jordan into a model of political and economic reform. Also, the Jordanian private sector is actively participating in and implementing the Mission's programs, particularly in the economic arena. For example, local business associations are fully engaged in directing economic reform efforts to develop new sectors and increase exports. In addition, Jordanian NGOs are key implementers in USAID's health, water, and economic programs. A local NGO, for instance, is spearheading efforts to manage and preserve Jordan's natural wonders and generate revenues from them for local populations without endangering the environment.
Other Program Elements: Several programs are underway in Jordan that are primarily managed or funded by USAID/Washington but facilitated or partially funded by the Mission. Specifically, USAID/Jordan partially funds and manages the International City/County Management Association project for hazardous waste management and the City Links Associate Award for medical waste management, both of which are funded and managed by the Bureau for Economic Growth, Agriculture and Trade (EGAT). USAID/Jordan also coordinates the Middle East Regional Cooperation and the U.S.-Israel Cooperative Development Research initiatives that are funded and managed by EGAT. The work of the International Arid Lands Consortium, managed and partially funded by the Bureau for Asia and the Near East, is facilitated and partially funded by USAID/Jordan. USAID/Jordan provides management support for Jordan Financial and Operational Restructuring and the Partnership for Financial Excellence projects funded by the Middle East Partnership Initiative (MEPI) and managed by EGAT. The Mission facilitates the Freedom House, National Democratic Institute, and International Republican Institute programs in Jordan, which are funded by MEPI and managed by the Democracy and Governance Office of the Democracy, Conflict, and Humanitarian Assistance Bureau. Furthermore, the MEPI-funded INJAZ Arabia project is fully managed by USAID/Jordan.
Other Donors: Total development assistance to Jordan totaled $488 million in 2004, with the United States as the largest donor to the country. The European Union is the second most important donor. USAID is the lead donor in the water sector and works closely with the Germans (construction and technical assistance) and the Japanese (construction and technical assistance), the second and third largest bilateral partners in the sector. A USAID representative manages the United Nations (UN) Donor/Lender Water Group, which includes international financial institutions and other bilateral donors. USAID is also a key member of a donor group rehabilitating Amman's water distribution system. This group includes the World Bank, the European Investment Bank, the Germans, and the Italians.
In other sectors, USAID/Jordan closely cooperates with other donors. In health, USAID is the largest donor in terms of grants and technical assistance. Coordination in this sector occurs through the UNAIDS monthly group meetings and regular contact with the United Nations Family Planning Association and the United Nations Children's Fund (women's and children's health). In education, USAID also leads donor efforts, with the Germans (school construction) and the Canadians (educational reform) deeply involved. Impressively, USAID is the sole donor on the Ministry of Education's steering committee to set educational policy. USAID also participates in technical level committees at the Ministry of Education with other donors. The Arab Gulf countries play a significant role in the integration of information and communications technology in the classroom. In democracy, as the primary donor with the European Union (judicial reform, governance, and legislative strengthening), USAID plays a leadership role on the UN donor/lender committees for social development and public sector reform. The British (public sector reform) and other European Embassies also contribute to the democracy sector. Notably, USAID leads ad-hoc democracy donor committees which include the European Union and Canada. Coordination has produced solid results, with the European Union and the United Nations Development Programme focusing on strengthening human resources at the Ministry of Justice, while USAID uses its resources for high-impact programs to fully automate the courts and train judges. Finally, USAID is the lead donor in the economics arena, with the European Union (small and medium enterprises, regulatory reform, and privatization) the second largest donor. The Japanese (small and medium enterprises) and the Germans (community development) also play significant roles. However, a formal high-level donor group does not exist in the economics sector, primarily because other donors do not contribute major resources to this area. Nevertheless, technical groups closely coordinate programs in public sector reform, microfinance, labor, and poverty.
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