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Jordan
>> Regional Overview >> Jordan Overview
Previous Years' Activities
2002, 2001, 2000, 1999, 1998, 1997
Last updated: 24
THE DEVELOPMENT CHALLENGE: In addition to the pivotal role it plays in Middle East regional stability, combating terrorism, and serving as a model of reform, a critical domestic challenge this year is spreading the benefits of economic reform and growth more broadly within the society. The Jordanian economy is highly vulnerable to regional and global political and economic shocks. The closure of traditional markets and the effects of the September 11th terrorist acts in the United States have negatively affected Jordan’s ability to overcome the many development challenges it faces.
The Government of Jordan (GOJ), led by King Abdullah II, has embarked on a program of far-reaching economic and social-sector reforms. A multi-faceted plan to accelerate the national social and economic transformation in Jordan is based on an aggressive growth budget over the next four years. This process is designed to maintain Jordan’s macroeconomic stability and strengthen its credibility with the international financial community. USAID/Jordan is well positioned to assist in this ambitious undertaking and to support Jordan as a key ally and development partner through efforts in population and family health, water resources, and economic opportunities for Jordanians.
The population of Jordan is 5.1 million. This is over nine times the population in 1952 when the United States began providing economic assistance. While the total fertility rate has declined from 7.3 children per family in 1976 to 3.5 in 2001, the current natural rate of increase is 2.3%, with a total population growth rate of 2.8%. This will lead to a doubling of the population by about the year 2027. This high population growth rate places severe demands on Jordan’s limited water resources and is a key factor in the current high rates of unemployment and under-employment.
Jordan is one of the ten most water-deprived countries on earth. Jordan needs to do whatever it can to use its water resources efficiently. Ninety percent of Jordan receives less than eight inches of rain annually. Of that, 90% is lost to evaporation. As a result of three years of drought, reservoirs which should contain 178 mcm of water contain only 37 mcm. Water is scarce in the entire region and will continue to be a critical issue for peace and economic development for decades to come.
In 2002, there will be 37,000 new entrants to the work force. With unemployment currently at 14.9% and rising since September 11th, and with "under-employment" adding perhaps another 5%, there will be few employment opportunities for these new entrants without faster economic growth and labor market reforms. In addition, the "safety valve" of employment in the Arabian Gulf is disappearing, placing a burden on the domestic economy. With 50.5% of Jordan’s population currently under age 20, and almost 40% below the age of 15, the situation will only get worse.
THE USAID PROGRAM: USAID will devote $150 million in ESF in FY 2002 to Jordan and is requesting $250 million in ESF in FY 2003. USAID’s program focuses on three strategic objectives (SOs): Improved Water Resources Management; Improved Access to and Quality of Reproductive and Primary HealthCare; and Increased Economic Opportunities for Jordanians. At the higher funding level, USAID/Jordan does not plan to add any new strategic objectives. However, it will expand the scope of activities to include social sector issues related to education, population, and family health. Additionally, one Intermediate Result indicator each will be added to the water resources and economic opportunities objectives to track rural development and poverty statistics under these strategic objectives. USAID will work with the State Department and the Jordanians to put in place the appropriate mechanisms to program and manage the increased funding level. The proposed activities and mechanisms are outlined in the Program Data Sheets below.
ONGOING PROGRAMS FOR WHICH NO 2002 OR FY 2003 FUNDING IS REQUESTED: None.
OTHER PROGRAM ELEMENTS: There are three USAID programs not managed by USAID’s field mission. The first is the Middle East Regional Cooperation (MERC) initiative funded and managed by USAID’s Bureau for Economic Growth, Agriculture, and Trade (EGAT). Most of the MERC projects in Jordan are in environmental protection, health, water and agriculture. Examples include the Aqaba Regional Peace Park (protecting the coral reefs), the Middle East Cancer Consortium, Eradication of the Mediterranean Fruit Fly, and Education for Peace. To date, approximately 35 projects have involved both Jordanian and Israeli partners, with a total funding level (all partners included) of almost $28 million. Three projects involving environmental protection and agriculture were approved in FY2001. The life of project ranges from three to five years. Jordan’s portion is approximately $514,000.
Second, the USAID field mission reviewed and approved two U.S.-Israel Cooperative Development Research (CDR) Projects for a total of approximately $400,000. The two three-year projects are collaborative research between Israel, Jordan, and the United States on the use of bees in agriculture.
Third, the USAID field mission assisted the U.S. Embassy in programming the equivalent of $25.78 million in local currency proceeds from the sale of 200,000 tons of Section 416(b) wheat. USAID provided information to the Embassy on the GOJ’s National Assistance Fund (NAF) for the poor, which was included in USG negotiations with the GOJ. Approximately $3 million will be allocated to the NAF from these resources.
OTHER DONORS: During FY 2001, Jordan received a total of $216,345,335 in grant assistance and $216,028,354 in loan assistance from thirty-five foreign governments and multilateral agencies. USAID (including USDA Section 416(b) assistance) provided 77% of total grant aid and was the single largest donor for the fourth year in a row. Japan was the second largest donor, with 10% of the total, followed by Italy (4%), the United Kingdom (3%), and Canada (1.5%). The World Bank, Islamic Development Bank, Arab Fund, European Union, United Nations Development Program, and the Governments of Spain, Germany, and Norway together provided the remaining 4.5% of grant aid. Of total loans, the World Bank was the largest creditor at 55%, followed by Spain (15%), Switzerland (9%), Italy (6%), Abu Dhabi Development Fund (4.6%), Denmark (3.3%), France (1%), and Norway (0.7%).
Program 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 |
