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Jordan
>> Regional Overview >> Jordan Overview ACTIVITY DATA SHEET
PROGRAM: Jordan
TITLE and NUMBER: Increased Economic Opportunities for Jordanians, 278-005
STATUS: Continuing
PLANNED FY 2001 OBLIGATION AND FUNDING SOURCE: $87,700,000 ESF ($37,700,000 program activities and $50,000,000 cash transfer)
PROPOSED FY 2002 OBLIGATION AND FUNDING SOURCE: $75,000,000 ESF
INITIAL OBLIGATION: FY 1997 ESTIMATED COMPLETION DATE: FY 2004Summary: USAID's Increased Economic Opportunities strategic objective directly supports U.S. foreign policy interests by promoting open markets and broad-based economic growth. It also indirectly promotes regional stability and economically strengthens a key U.S. ally whose economy has been adversely affected by regional events and the closure of traditional markets. The USAID economic opportunities strategy is designed to promote trade and investment, support the small and micro-enterprise sector, and advance Jordan's market-based economic restructuring program.
Key Results: Jordan acceded to the World Trade Organization (WTO) in April 2000. USAID's technical assistance played a key role in making this possible. Similarly, USAID's technical assistance was important in addressing environmental concerns related to the U.S.-Jordan Free Trade Agreement. The agreement, initialed in Washington D.C. in October 2000, put Jordan in the position of becoming the fourth country (after Canada, Mexico, and Israel) to enjoy such a relationship with the United States. USAID's assistance was vital in bringing about the establishment of the Aqaba Special Economic Zone in early 2001. During 2000, over 17,000 clients participated in several USAID-funded micro-finance programs. USAID also continued to play an important role to shape the policy environment for information technology development in Jordan.
Performance and Prospects: In FY 2001, USAID plans to provide $37.7 million in program funds to increase access to business services and support more effective identification and implementation of policy reforms. USAID also plans to provide a $50 million cash transfer to improve the environment for sustained economic policy reform.
With respect to economic policy reform and implementation, a number of important milestones are anticipated in 2001, including the enactment of WTO-related laws, further progress in capital market development, expanded opportunities for the information technology sector, and a continuation of Jordan's impressive record in privatizing government-owned companies.
During the last year, Jordan effected a series of wide-ranging measures designed to open markets, overcome structural economic obstacles, and integrate the country into the wider global economy. USAID's economic opportunities program was especially well positioned to take advantage of King Abdullah's energetic leadership in building a world-class economic and business environment and promoting private sector trade and investment.
Jordan completed all preparations in advance of the official opening of the Aqaba Special Economic Zone (ASEZ) in early 2001, setting the stage for its emergence as a model for streamlined investment procedures. Once again, USAID played a critical role in providing the extensive technical assistance to design laws and regulations required for this initiative. This assistance is scheduled to continue as the ASEZ is established and efforts are made to expand trade and attract new investment.
The microfinance industry in Jordan is reaching a new level of maturity. From a base of only a few hundred active clients three years ago, USAID-supported sustainable microfinance programs reported more than 17,000 active clients during FY 2000, most of whom were women. Repayment rates approached 99%.
To further support the growth of Jordan's microfinance industry, USAID assisted in the development of a microfinance training and professional certification program at the Jordan Institute of Banking Studies. In addition, USAID initiated development of a private sector information bureau aimed at facilitating more efficient lending practices by financial institutions.
A school-based youth business skill initiative (INJAZ - "achievement" in Arabic), modeled after the U.S. Junior Achievement Program, continued its success in FY 2000. INJAZ is a timely initiative aimed at enhancing youth skills in a private-sector economy.
Under the policy implementation component, USAID provided extensive technical assistance and training in support of the Government of Jordan's (GOJ's) economic reform program. The intent is to increase private-sector growth, expand trade and investment, and assist in the transition to a global economy. New WTO-consistent copyright, trademark, and patent laws were enacted. Under USAID's capital market activity, automation of securities clearing and settlement was initiated, as well as the certification and training of brokers. A government debt securities market initiative continued at the Ministry of Finance, with technical assistance provided by the U.S. Department of Treasury. Support for the first private sector-driven, national economic strategy initiative, "Jordan Vision 2020," was provided through the Access to Micro-Finance and Implementation of Policy Reform (AMIR) Program's business associations activity. In turn, this became the catalyst for an innovative public-private sector partnership focused on key reforms that need to be undertaken to ensure Jordan's competitiveness in the global economy.
The information provided below is illustrative.
In FY 2001, USAID will-
- Provide $50 million to continue and expand the policy-based balance of payments program. As in previous years, disbursement will be conditioned on economic reforms related to trade and investment, financial and legal reforms, and privatization. Cash transfer-associated local currency is used to help support mutually programmed development priorities related to USAID's three strategic objectives;
- Contribute $2 million to the World Bank technical assistance trust fund so that it can continue to provide high quality advisory services in support of several major privatization transactions in the power and mining sectors;
- Provide $15 million to the successful AMIR program, USAID's "flagship" economic growth activity in Jordan. Many USAID initiatives related to trade, investment, customs, financial markets, and micro finance are funded under this activity;
- Provide $14.7 million to support activities associated with the newly declared Aqaba Special Economic Zone (ASEZ). Part of the funding will go to technical assistance, training, commodities, and other activities associated with this important, high priority initiative to expand Jordan's export capacity. Other funding will be allocated to support construction of a modern light industrial estate within ASEZ, which already has been designated as a qualified industrial zone;
- Provide $2 million to the Jordan-U.S. Business Partnership (JUSBP) for improved marketing, quality standards, and management of small- and medium-sized companies in Jordan. JUSBP also works with the AMIR program to help develop Jordan's software and information technology services industry;
- Provide $1 million to the Jordan Youth Initiative (INJAZ), a program based on Junior Achievement that introduces and strengthens entrepreneurial skills among Jordan's youth;
- Consider adding $2 million to the existing endowment for the American Center for Oriental Research (ACOR). Given the importance of the tourism sector to Jordan's economy and the useful role ACOR plays in developing and promoting Jordan's tourist sites, the intent is to utilize funding under this activity for this purpose; and
- Support other activities that may receive a total of $1 million including: microfinance programs; the ongoing Royal Society for Conservation of Nature ecotourism initiative; and a program that allows American business school students to work directly with Jordanian institutions in an effort to improve their management and efficiency.
The life-of-objective funding level for this objective will increase by $150,000,000, bringing the new funding total to $658,742,000.
Possible Adjustments to Plans: Prospects are reasonably good for significant USAID economic opportunity program-related results during 2001. However, continued unrest and violence in the Middle East could negatively affect Jordan's economic growth prospects, especially in the important tourism sector. Within the planning parameters established under this objective, funding could be used to help respond to unexpected economic concerns or opportunities that might arise as a result of these developments.
Other Donor Programs: USAID was by far the largest grant donor in the economic growth area in 2000. The World Bank also provided soft loans to support the GOJ's economic reform program. Germany provided support for the National Information System project. Japan, the European Union, United Nations, European Investment Bank, and Canada all provided grants to support various economic development activities. USAID has excellent donor coordination with all bilateral and multilateral donors in Jordan. USAID works closely with the World Bank in economic policy reform implementation, the United Nations Development Program (UNDP) in the microfinance sector, and the Foreign Investment Advisory Service in promoting foreign direct investment.
Principal Contractors, Grantees, or Agencies: Primary contractors and grantees include Chemonics; Save the Children; Cooperative Housing Foundation; International Executive Service Corps; UNDP; Wilbur Smith Associates; PricewaterhouseCoopers; The Services Group; KPMG; and the World Bank. USAID's primary GOJ counterpart is the Ministry of Planning. USAID also works closely with the Ministries of Industry and Trade and Finance; the Central Bank; the Customs Department; the Executive Privatization Unit; the Jordan Securities Commission; the Aqaba Special Economic Zone Authority; and the Jordan Investment Board. In addition, local business associations and private sector firms benefit from USAID assistance in the economic opportunity area.
FY 2002 Performance Table
Jordan: 278-005
Performance Measures:
Indicator FY97 (Actual) FY98 (Actual) FY99 (Actual) FY00 (Actual) FY00 (Plan) FY01 (Plan) FY02 (Plan) Indicator 1: Progress toward privatization of state-owned enterprises (SOE's) NA EPC fully staffed. JTC privatization initiated. EPC targets established Cumulative $107 million assets privatized. Cumulative US $789 million assets privatized. Cumulative US$ 100 million assets privatized At least 3 major privatization transactions completed. Cumulative US$ 900 million assets privatized At least US.$1 Billion cumulative assets privatized. Indicator 2: Annual level of foreign direct and domestic investments facilitated by Jordan Investment Board (JIB) formerly known as the Investment Promotion Corporation incentives N/A 675 608 1127 1200 1540 1600 Indicator 3: Percentage increase in number of companies registered 1.8 - 4.8 -8.1 15.8 2.5 3.0 2 Indicator 4: Number of borrowers obtaining micro- and small-enterprise credit 8,486 (T) 6,311 (T) 1* 13,258 (T) 1* 17,510 (T) 12,400 15,000 18000 Indicator 5: Progress toward privatization of state-owned enterprises (SOE's) NA EPC fully staffed. JTC privatization initiated. EPC targets established Cumulative $107 million assets privatized. Cumulative US $789 million assets privatized. Cumulative US$ 100 million assets privatized At least 3 major privatization transactions completed. Cumulative US$ 900 million assets privatized At least US.$1 Billion cumulative assets privatized. Indicator 6: Percentage increase in number of companies registered 1.8 - 4.8 -8.1 15.8 2.5 3.0 2 Indicator 7: Annual level of foreign direct and domestic investments facilitated by Jordan Investment Board (JIB) formerly known as the Investment Promotion Corporation incentives N/A 675 608 1127 1200 1540 1600 Indicator 8: Number of borrowers obtaining micro- and small-enterprise credit 8,486 (T) 6,311 (T) 1* 13,258 (T) 1* 17,510 (T) 12,400 15,000 18000 Indicator Information:
Indicator Level (S) or (IR) Unit of Measure Source Indicator Description Indicator 1: IR NA Prime Ministry's Executive Privatization Commission (EPC) Cumulative number of major SOE privatization transactions and cumulative value of SOE assets transferred to private ownership or management control. Indicator 2: IR Million of US Dollars Jordan Investment Board (JIB) Sum of the values of foreign direct and domestic investments through companies benefiting from JIB incentives. Indicator 3: IR Percent increase (year-to-year) Central Bank of Jordan Statistical Bulletin Number of newly registered companies, expressed as a percentage of all registered companies. Indicator 4: IR (Men/Women/Total) Save the Children (SAVE), Jordan Loan Guarantee Corporation (JLGC), Cooperative Housing Foundation (CHF) , the Jordan Micro Credit Company (JMCC) and Ahli Microfinancing Company (AMC) Number of micro- and small-enterprise active credit clients of USAID-supported institutions. Indicator 5: IR NA Prime Ministry's Executive Privatization Commission (EPC) Cumulative number of major SOE privatization transactions and cumulative value of SOE assets transferred to private ownership or management control. Indicator 6: IR Percent increase (year-to-year) Central Bank of Jordan Statistical Bulletin Number of newly registered companies, expressed as a percentage of all registered companies. Indicator 7: IR Million of US Dollars Jordan Investment Board (JIB) Sum of the values of foreign direct and domestic investments through companies benefiting from JIB incentives. Indicator 8: IR (Men/Women/Total) Save the Children (SAVE), Jordan Loan Guarantee Corporation (JLGC), Cooperative Housing Foundation (CHF) , the Jordan Micro Credit Company (JMCC) and Ahli Microfinancing Company (AMC) Number of micro- and small-enterprise active credit clients of USAID-supported institutions. U.S. Financing
(In thousands of dollars)
Obligations Expenditures Unliquidated Through September 30, 1999 0 DA 0 DA 0 DA 0 CSD 0 CSD 0 CSD 249,552 ESF 217,914 ESF 31,638 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Fiscal Year 2000 0 DA 0 DA 0 CSD 0 CSD 96,500 ESF 75,613 ESF 0 SEED 0 SEED 0 FSA 0 FSA 0 DFA 0 DFA Through September 30, 2000 0 DA 0 DA 0 DA 0 CSD 0 CSD 0 CSD 346,052 ESF 293,527 ESF 52,525 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Prior Year Unobligated Funds 0 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Planned Fiscal Year 2001 NOA 0 DA 0 CSD 87,700 ESF 0 SEED 0 FSA 0 DFA Total Planned Fiscal Year 2001 0 DA 0 CSD 87,700 ESF 0 SEED 0 FSA 0 DFA Future Obligations Est. Total Cost Proposed Fiscal Year 2002 NOA 0 DA 0 DA 0 DA 0 CSD 0 CSD 0 CSD 75,000 ESF 150,000 ESF 658,752 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA
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Last Updated on: May 29, 2002 |
