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Jordan
>> Regional Overview >> Jordan Overview
Summary Tables
Program Summary
Previous Years' Activities
2001, 2000, 1999, 1998, 1997Last updated: 53
Introduction
USAID economic assistance to Jordan is an important element of the U.S. effort to promote peace and stability in the Middle East. Jordan's desire for peaceful solutions to the region's complex problems continues despite the various political and economic obstacles encountered along the way. Two years after the death of King Hussein, Jordan continues to play an important moderating role in the region. However, the experience of several consecutive years of slow economic growth and declining per capita income is causing increasing concern. Public frustration continues to increase because expectations of prosperity stemming from Jordan's 1994 peace treaty with Israel remain unfulfilled. Stalled Middle East peace discussions have dampened Jordan's investment climate. Developments during the first three-quarters of 2000 were very promising-annual rates of economic growth were on track to exceed four percent for the first time in four years. The last quarter of the calendar year, however, was marked by high levels of violence in the West Bank and Gaza that cast a dark shadow over Jordan's immediate future.
USAID-funded initiatives in Jordan make an integral and visible contribution to U.S. foreign and economic policy objectives. USAID's program directly supports U.S. national security interests (regional peace, support for allies), economic prosperity goals (broad-based economic growth, implementation of economic reforms, expanded trade and market development) and global concerns (stabilized population, quality maternal healthcare, environmental concerns). During USAID's May 2000 program review, the 1997-2001 strategy was extended through 2004. The shape and magnitude of future USAID programming will depend on a variety of political and economic factors, including developments within Jordan and the course of peace discussions between Israel and the Palestinians.
Development Challenge
USAID's eight-year Jordan strategy addresses three inter-related development constraints that are central to Jordan's prospects for lasting economic and social improvement: too little water; too rapid population growth; and too few jobs. This formulation highlights the systemic nature of Jordan's primary development impediments. It also underscores the necessity to address each of these factors concurrently. Jordan's high population growth rate places enormous pressure on the Kingdom's scarce natural resources, especially water. So, too, rapid population growth makes it increasingly difficult to generate productive employment for the increasing number of Jordanians entering the workforce each year. Failure to address these three challenges will jeopardize development prospects and gains made to date.
Other Donors
According to official Jordanian sources, the country received approximately $375 million in donor grant aid and $295 million in loan assistance during 2000. The United States was the largest grant donor, providing approximately $223 million. Other major grant donors included the European Union ($114 million), Germany ($16 million), Japan ($12 million) and the World Bank and other donors ($10 million). The Arab Fund for Economic and Social Development was Jordan's largest creditor, providing $114 million during 2000, followed by the Islamic Development Bank ($72 million). The Ministry of Finance was the largest recipient of these loan funds, using the assistance in part for balance of payments support.
FY 2002 Program
One of USAID's main objectives is to improve Jordan's water resource management. Annual water demand is expected to increase to 1.2 billion cubic meters by 2001, far above the 750 million cubic meters now available on a sustainable basis. On a per capita basis, freshwater availability in Jordan is among the lowest in the world. In response, USAID is supporting the Government of Jordan's 14-year, $5 billion priority water investment plan. Its chief objective is to optimize use, allocation, and management of this crucial resource. USAID also is one of the lead donors in improving wastewater management and reuse, which will help abate serious environmental degradation while augmenting water availability from a source that would otherwise be wasted. During 2000, USAID funded a water policy implementation program focused on reducing groundwater depletion and encouraging the reuse of treated wastewater.
USAID also is implementing an activity that encourages private-sector participation and another that is strengthening the government's capability to develop, contract, and manage major water infrastructure projects. With USAID assistance, the Ministry of Water and Irrigation will make a contract award for a major build-operate-transfer wastewater project in the summer of 2001. In the second half of 2001, USAID will make an award for a private sector management contract for the Wadi Mousa water and wastewater facility that was completed in late 2000. The rehabilitation of four springs and wells was completed in FY 2000, providing an additional 7.5 million cubic meters of potable water to approximately 120,000 Jordanians.
In addressing Jordan's high population growth rate, USAID will continue to focus on improving access to, and the quality of, reproductive and primary healthcare. Encouraging progress has been made as evidenced by the signs of a demographic transition now underway. These indications include increased contraceptive use, accompanied by decreasing fertility rates and family size. The modern contraceptive prevalence rate increased from 27% in 1990 to 39% in 2000. Similarly, fertility rates have declined from an estimated 5.6 children per woman in 1990 to 3.6 children per woman in 2000. With USAID's assistance, the Ministry of Health is adopting new approaches in delivering comprehensive maternal and child healthcare services. USAID-supported Comprehensive Postpartum Centers (CPPs) increased from 12 in 1997 to 21 in 2000, and will help reach outlying population centers. The proportion of women delivering in hospitals with CPP centers who returned for postpartum/family planning services increased from 6%in 1990 to 65% in 2000.
Major achievements were made in several key areas of economic reform during 2000. USAID's economic opportunities program was well positioned to take advantage of King Abdullah's energetic leadership in building a world-class economic and business environment, and in promoting private-sector trade and investment. USAID's economic growth strategy continues to increase economic opportunities for Jordanian citizens, thus ensuring broader participation in future economic expansion. To create economic opportunities at the lower end of the income scale, USAID expanded a major microfinance initiative that makes financial services available to economically disadvantaged Jordanians. Jordan joined the World Trade Organization in April 2000, following months of intensive USAID-funded technical support that brought about far-reaching changes in the country's trade and investment regime. Jordan and the U.S. Government initialed a Free Trade Agreement (FTA) in October 2000. When ratified, the FTA will make Jordan only the fourth country (after Canada, Mexico, and Israel) to enjoy such a relationship with the United States. USAID played an important part in helping Jordan address FTA-related environmental issues. An annual $50 million policy reform-based cash transfer initiative provides assistance to advance Jordan's market-based economic reform program. These interventions already have increased economic opportunities. For example, the number of microcredit borrowers has increased approximately 300% over the past three years; partial privatization of state-owned enterprises generated more than $682 million in 2000; and the Jordan Investment Board facilitated foreign investments totaling $1.2 billion in 2000.
USAID programming will continue to pursue USAID Agency-level goals within the framework of the Department of State Mission Performance Plan (MPP). The water resources objective directly addresses global environmental issues as well as economic growth constraints. Water, wastewater projects and policy reform activities will be funded in FY 2002. Similarly, the reproductive and primary health initiative is aligned directly with the Agency goal of promoting sustainable population growth rates. FY 2002 activities will include primary healthcare and sustainability activities with the Jordanian Association for Family Planning and other local partners. USAID's economic opportunity objective strengthens market forces, expands access to financial services for the poor and works to achieve broad-based economic growth. FY 2002 funding will include a cash transfer, support to the Aqaba Special Economic Zone, and microfinance activities.
Other USAID programs in Jordan include the Middle East Regional Cooperation Program (MERC) and Global Bureau field support activities. Under MERC, Jordan participates in regional scientific research projects with Israel and Arab neighbors.
Activity Data Sheets
- 278-002 Improved Water Resources Management
- 278-003 Improved Access to and Quality of Reproductive and Primary Health Care
- 278-005 Increased Economic Opportunities for Jordanians
Country Background Information Resources
CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
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Last Updated on: May 29, 2002 |
