Promoting Economic Growth
 Job seekers receive an orientation upon arriving at a job fair sponsored by USAID and the Jordanian Ministry of Labor. Job fairs in Jordan bring training sessions and vacancies directly to an eager workforce. (Photo: Hassan Ayoub)
MIDDLE EAST BUREAU ECONOMIC GROWTH PROGRAMS
Egypt, Iraq, Jordan, Lebanon, Morocco, West Bank/Gaza and Yemen
CONTACTS
James Walker
Senior Economist
Tel: (202) 712-4043
Email: jwalker@usaid.gov
Overview
In the Middle East and North Africa, over one-fourth of young people are unemployed. This high rate of unemployment is largely the result of slow economic growth. Slow growth, in turn, is caused by poor economic governance institutions and policies, and low rates of international trade and investment. USAID implements economic growth programs in the Middle East and North Africa to help overcome these problems. Economic growth is a key U.S. foreign policy goal for the region.
Programs
Building Strong Economic Policies and Institutions
Inefficient policies, weak institutions, and corruption hamper growth in the region. USAID works with governments to improve business laws, reform ministries, and strengthen fiscal and monetary policies. Recognizing that economic growth requires effective public sector organizations, USAID is implementing a regional project to identify problems that negatively affect government service delivery and recommend reforms to address these problems. Yemen's ministries of finance, health, education, and agriculture are currently implementing these reform recommendations with USAID’s assistance. In Iraq, USAID has worked with national governmental agencies to help build Iraqi governing capacity, particularly at the Central Bank and Ministry of Finance
Investing in Technology and Trade
Increased trade and access to modern technology benefit both the agricultural and non-agricultural sectors of Middle Eastern economies. USAID assisted Morocco in implementing a new risk-based customs clearance system that has reduced the time to export by two days and the time to import by four days. USAID continues to work with the governments of Morocco and Jordan to help them benefit from their free trade agreements with the United States.
Increasing Access to Credit
Access to credit is minimal in most of the region, making it difficult to start and expand businesses. Many USAID programs focus on making credit more readily available to micro, small, and medium businesses, which create jobs and income for the poor. In Iraq, USAID has established microfinance lending in all 18 provinces. The current loan portfolio consists of nearly 65,000 outstanding loans totaling over $137 million - with a 98 percent repayment rate.
Improving Business Environments
A business friendly environment is essential for private sector investment and growth. In Egypt, USAID supported the strengthening of legal and regulatory frameworks affecting business. These efforts are paying off, and Egypt has been recognized as a top reformer in the World Bank’s 2009 Doing Business Report.
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