|
|
|
|
|
|
|
|
| >> Regional Overview >> Jordan Overview | |||||||||||||||||||||
IntroductionUSAID economic assistance to Jordan is an important element in the U.S. effort to promote peace and stability in the Middle East. Jordan's desire for peaceful solutions to the region's complex political problems continues despite the various political and economic obstacles encountered along the way. One year after the death of King Hussein, Jordan continues to play an important and influential moderating role in the region. However, several consecutive years of slow economic growth and declining per capita income is causing increasing concern. Further frustration is bound to emerge if expectations of prosperity stemming from Jordan's 1994 peace treaty with Israel remain unfulfilled or if the Middle East peace process stalls. As final status talks between the Israelis and Palestinians get underway and the prospect for movement on other tracks of the Middle East Peace Process increases, maintaining strong U.S. support for Jordan is as critical as ever.USAID remains at the forefront of U.S. efforts to promote economic growth in Jordan. USAID-funded initiatives make an integral and visible contribution to U.S. foreign and economic policy objectives. USAID's program in Jordan 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). The current USAID strategy in Jordan runs through 2001. The shape and magnitude of future USAID programming will depend on a variety of political and economic factors, including developments within Jordan and the outcome of the on-going regional peace process. The Development ChallengeUSAID's strategy addresses three inter-related development constraints that are central to Jordan's prospects for lasting economic and social prosperity: 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 find productive employment for an increasing number of Jordanians entering the workforce each year. Failure to address the population growth rate, and access to water and jobs, will jeopardize development prospects and gains to date.One of USAID's main objectives is to improve water resource management in Jordan. Annual water demand is expected to increase to 1.2 billion cubic meters by 2001, far above the 750 million cubic meters (mcm) 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 (GOJ's) 14-year, $5 billion priority water investment plan whose chief objective is to maximize efficient use, allocation and management of this crucial resource. USAID is also one of the lead donors in improving wastewater management which will help abate serious environmental degradation while augmenting water availability from a source that would otherwise be wasted. During 1999, USAID initiated a new water policy implementation program focused on reducing groundwater depletion and optimizing the reuse of treated wastewater. USAID also launched a new program to encourage private sector participation and an activity to strengthen the government's capability to develop, contract and manage major water infrastructure projects. With USAID assistance, the Ministry of Water and Irrigation (MWI) is planning a major Build-Operate-Transfer (BOT) wastewater project and a private sector management contract for the Wadi Mousa water and wastewater facility near Petra, now under construction. Finally, a rapid USAID response helped bring Amman's major water treatment plant that had been temporarily shut down back into operation in 1998. Additional improvements have since been made that averted a similar situation during the summer of 1999, a time of severe drought. Due to Jordan's high population growth rate, USAID is also focussing 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 39.8% in 1999, putting the country well within reach of the National Population Commission's 41.5% target by the year 2000. Similarly, fertility rates have declined from an estimated 5.6 children per woman in 1990 to 3.8 children per woman in 1999. With USAID's assistance, the Ministry of Health (MOH) is adopting new approaches in delivering comprehensive maternal and child health care services. USAID-supported Comprehensive Postpartum Centers (CPPs) are due to increase from 12 in 1997 to 21 in 2000 and will help reach outlying population centers. The percentage of women delivering in hospitals with CPP Centers who return for postpartum/family planning services is expected to increase from 6 in 1990 to 65 in 2000. Impressive progress was made in several key economic reform areas during 1999. 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 should further increase economic opportunities for Jordanian citizens, thus ensuring broader participation in future economic expansion. This is important because economic stagnation, lower per capita incomes and high unemployment are causing growing concern. To create economic opportunities at the lower end of the income scale, USAID expanded a major microfinance initiative that will continue to make financial services available to economically disadvantaged Jordanians. USAID is also providing significant assistance to enable Jordan to join the World Trade Organization. The pace of privatization as well as reform related to trade, investment and the financial sector is increasing. An annual $50 million for a policy reform-based cash-transfer initiative provides assistance to sustain Jordan's market-based, economic reform program. These interventions are already increasing economic opportunities: the number of micro-credit borrowers has increased 210% within the past two years; partial privatization of state-owned enterprises in 1999 generated more than $120 million; and the Investment Promotion Corporation facilitated investments totaling $608 million in the first ten months of 1999. Other DonorsAccording to official Jordanian sources, the country received approximately $286 million in donor grant aid and $366 million in assistance loans during 1999. The United States was the largest grant donor, providing approximately $200 million. Other major grant donors included Japan ($40 million), Germany ($15 million), and the United Nations ($8 million). With regard to loan assistance, the World Bank was Jordan's largest creditor, providing $210 million during 1999, followed by the Arab Fund for Economic Development ($77 million). The Ministry of Finance was the largest recipient of these loan funds, using the assistance in part for balance of payments support.
|
|||||||||||||||||||||
 |
|||
|
