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Asia and Near East
Jordan
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Jordan

The Development Challenge: Jordan currently faces several critical long-term challenges with the potential to slow reform and growth. Prominent among these challenges is Jordan's high population growth rate that will double the population by 2027. This challenge is compounded by a strained public health care system with inadequate primary health care services. Jordan also suffers from severe water shortages. As one of the ten most water deprived countries in the world, Jordan must ensure that lack of water combined with environmental degradation due to population pressures does not have a negative impact on its citizens' well-being.

Strategic Objectives
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Two other key challenges exist. First, Jordan has high levels of poverty and unemployment. At least 15%, and possibly up to 30% of Jordanians live below a poverty line set at a meager $439 per capita annual income level. Second, there is a relatively low level of participation in civil society, and a perceived lack of personal freedom, especially in terms of public discourse.

To help address the challenges above, USAID promotes Jordanian-led development. This development is spearheaded by King Abdullah, who is strongly supported by the Jordanian Government. The Mission's program is jointly designed and implemented with the Government and other Jordanian entities. In line with U.S. interests, this program promotes a stable, reform-driven Jordan. In so doing, the program not only strengthens a strong strategic ally in the Middle East but also serves as a model to less reform-oriented Middle Eastern nations.

The USAID Program: The goal of the USAID/Jordan program is to help Jordan become a model for growth and prosperity in the region. To do so, the USAID program addresses the development challenges enumerated above while accelerating the pace of reform in sectors closely linked to social and economic transformation. Specifically, USAID works in three areas: economic growth, social sector development and governance, and water resource development. Social sector development and governance encompasses heath, education, and democracy. A fourth area, funded by the cash transfer, strengthens all other areas through policy reforms and enables the Jordanian Government to service debt. In all cases, USAID partners with the Government of Jordan (GOJ), local non-governmental organizations (NGOs), and the private sector to achieve its objectives. The Government is very closely involved in the Mission program, producing a true partnership based on both the GOJ's reform program and USG interests. Local NGOs also cooperate closely with the Mission in designing and implementing programs. The private sector, too, is key to Mission successes, particularly in economic growth. In this regard, private companies in several fields are eager to become bigger players on the regional and world stage.

The Mission's new strategy is effective starting October 2003 through September 2009. The old strategy was closed out in September 2003 and subsequently, ongoing Mission activities were moved under the new programs. This Congressional Budget Justification describes activities and anticipated results to be funded in FY 2004 and FY 2005 under the new programs.

Other Program Elements: Other USG programs also support Jordanian reform efforts. Assistance in preparation for Jordan's parliamentary elections was provided this year through U.S. experts under the Middle Eastern Partnership Initiative (MEPI). Other MEPI activities, both regional and bi-lateral, are managed by the Department of State and USAID/Washington. USAID Global Development Alliance activities are also managed by or cooperatively with USAID/Washington. Through food aid programs, including P.L. 480 Title I in 2003 and section 416 (b) in previous years, USDA also supports several development and agricultural productivity enhancement projects. Additionally, the International Arid Lands Consortium focuses on use of reclaimed water in agriculture, which complements ongoing Mission activities. Several projects funded under the Middle East Regional Cooperation program continue to provide technical assistance and promote regional cooperation, mainly in the areas of environmental protection, health, water and agriculture.

Other Donors: Although USAID is the largest donor in Jordan, Jordan receives important technical assistance from a wide variety of other donors. In broad terms, it is expected that the total commitments of foreign assistance in 2003 will amount to approximately $1.5 billion, representing a 170% increase over 2002. Approximately $1.18 billion of this amount is in the form of grants. The remaining $390 million is loans.

The United States is by far the largest grantor, providing 78% of the total, followed by Japan at 8%, Saudi Arabia, Kuwait and Abu Dhabi at 8%, and the European Union at 2.8%. Canada, Germany, Spain, Italy, United Kingdom, Norway, Sweden and the World Bank each provided less than 0.4%.

The World Bank is the Kingdom's largest creditor, providing $120 million in loans followed by The Arab Fund at $100 million, Spain at $50 million, the Abu Dhabi Development Fund at $50 million, the Islamic Bank for Development at $35 million, the United States at $20 million and Germany, Italy, Norway, Belgium, the International Fund for Agricultural Development and OPEC together at $34 million.

USAID coordinates closely with other donors in our technical assistance efforts. USAID is an active participant in the regular monthly Donors/Lenders Committee meetings chaired by the United Nations Development Programme. These meetings are used to ensure continuous coordination of efforts. For example, USAID, as a major donor in water in Jordan, heads the sub-group on water in the Donors/Lenders Committee to coordinate all activities in the water sector. Within this framework, USAID specifically manages private sector participation, cost recovery and institutional capacity building. The Japanese manage environmental issues and unaccounted-for-water, and the Germans are responsible for information management.

Similarly, USAID is quickly becoming a key player in education. A Development Coordination Unit has been established within the Ministry of Education to manage implementation of the GOJ's Education Reform for Knowledge Economy (ERfKE) program. Through this Unit's coordination efforts and additional coordination meetings with donors, USAID committed to working on early childhood education and youth education focused on the school-to-work transition. The Canadians will manage curriculum development, the British will handle policy and administration reform, the Japanese will develop information and communication technologies, and the Germans will handle school infrastructure. The World Bank provided the bulk of the loan to the Government for ERfKE. MEPI also is making a multi-million dollar investment with FY 2003 funding in the Jordanian Education Initiative.

USAID coordinates in other sectors as well. As the largest donor and recognized leader in the health sector, USAID is looked to by other donors, such as the World Health Organization, for analysis of their proposed strategies and plans for the health sector. USAID is also actively involved in donor meetings on microfinance, regularly carrying out tasks agreed upon at these meetings to improve microfinance delivery in Jordan. Additionally, USAID participates in and organizes donor workshops on specific topics such as governance in Aqaba and information technology.

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Fri, 14 Jan 2005 14:58:45 -0500
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