Together … Making A Difference:
A Better Future for Jordanians

The United States Agency for International Development (USAID) is the principal U.S. government agency providing economic and development assistance to partner countries in support of the foreign policy goals of the United States.

Since 1951, the U.S.-Jordanian development partnership has been an important component of the relationship between the two countries. Committed to together developing Jordan into an oasis of stability and economic prosperity, USAID and the Government of Jordan have been cooperating together for the past five decades in a wide range of sectors – including water, agriculture, economic development, education, health, tourism, environment, and infrastructure. Total economic assistance devoted to these efforts since 1951 now exceeds $4.1 billion.

Challenges

Poor in natural resources, lacking a well-developed industrial base, and surrounded by powerful neighbors, Jordan's economy is influenced by economic and political conditions elsewhere in the region. The effects of the second Intifada in the Palestinian territories, September 11th events, and the war with Iraq have led to decreases in investor confidence and tourism, two major sources of foreign exchange. Rapid population growth continues to place enormous burdens on a water-scarce country in which jobs are not being created fast enough to absorb a growing workforce. Unemployment is a persistent and growing problem, and poverty levels remain high. Weak decision-making institutions and low civic participation present another challenge for Jordan’s economic and social development.

Despite these challenges, Jordan has been able to maintain a stable political environment, which allowed it to seize opportunities for economic and political advancement. Continued commitment to implementing a wide-ranging program of economic restructuring and reform developed in cooperation with the IMF, USAID and the World Bank has been instrumental in considerably increasing GDP growth rates in the past three years. Macroeconomic stability has been restored and the debt burden is more manageable than it was a few years ago. Within the region, Jordan's comparative advantage continues to rest with its young, well-educated population, world class tourist attractions, and clear commitment to political and educational reform.

Jordan is now poised to transform itself into a hub of dynamic economic and social reform. It became a member of the World Trade Organization (WTO) in 2000, and, subsequently, the U.S. and Jordan signed a Free Trade Agreement (FTA) in 2001. King Abdullah II has advanced a program for reform called the Social and Economic Transformation Plan (SETP). This plan focuses on economic reform through private sector development, education, political reform and health care reform. “Jordan First” represents a second major policy initiative by the Jordanian government. This comprehensive program aims to increase participation of all Jordanians in civil society and governance. A third reform plan, Education Reform for the Knowledge Economy (ERfKE), addresses the future human capacity requirements of Jordan through improved early childhood, primary, and secondary education.

Response

To address these challenges, and capitalizing on 50 years of productive cooperation with the citizens of Jordan and the Jordanian Government, USAID’s activities over the next five years will focus on five main sectors:

This tightly focused portfolio has allowed USAID to have a profound impact on development and economic growth within Jordan.

Highlights

During the 50 years of its operation in Jordan, USAID’s work has touched the lives of thousands of Jordanians. Schools were built that still echo with the footsteps of boys and girls seeking the education needed to meet the challenges of tomorrow. Water and wastewater facilities were built over the course of the years, and are still in service to date. Roads and highways, built with USAID funding, have enabled agricultural produce to reach markets, tourists to visit the USAID-funded restoration of many ancient sites like Petra and Um Qias, and Jordanian products to be marketed around the world. Eradication of malaria, construction of the first tuberculosis center in Jordan, and construction of the first nursing school were also among the achievements of the USAID program in Jordan.

More recently, USAID financed the construction of the industrial park in the port of Aqaba, which promises a rich economic future for Jordan’s next generation. We have helped provide over 139,000 microfinance loans which have improved the lives of over 59,000 borrowers. We have helped hundreds of small companies improve their packaging and marketing to utilize the recently signed Free Trade Agreement between Jordan and the United States. We have established an entrepreneurship and life skills training program for high school students, which has trained over 47,000 students and helped 24 students establish their own companies. We are helping develop Jordan’s information technology sector to position Jordan as the leading IT hub in the region, leading to a growth in the number of IT-related jobs from 1,250 to 9,000 and exports of $47 million. We are helping renovate Jordan’s 380 public primary health care centers which will enable thousands of families in the most unreachable places of Jordan have access to good quality health care. We are constructing the Zara-Ma’in water treatment facility, which will increase the drinking water available for Amman by 40%. We are participating in a multi-donor effort to rehabilitate Amman’s water supply system, benefiting 600,000 Jordanians. And, we are providing 45% of the cost for the construction of Jordan’s first public-private Build-Operate-Transfer wastewater treatment plant to replace the existing, overloaded plant at As-Samra, which will benefit 2.5 million Jordanians.