USAID-Jordan Partnership

Despite its status as an upper-middle-income country, Jordan remains beset by an array of development challenges. Against the backdrop of high population growth, Jordan’s youth unemployment rate stands at 30 percent, more than double the national rate. A country that has virtually no natural resources of its own, Jordan also continues to struggle with severe water and energy scarcity. More recently, the crisis in neighboring Syria has led to an influx of refugees into Jordan, further straining the country’s resources. The United States considers Jordan a critical ally in the Middle East, and provides assistance across a wide range of sectors, including health, education, agriculture, energy, resource management and governance. The United States also channels assistance to the Jordanian military in support of the country’s national defense, as well as of wider regional stability. In its 2013-2017 country development cooperation strategy for Jordan, the U.S. Agency for International Development affirms its commitment to achieving the following development objectives in the country: - Accelerating broad-based and inclusive economic development. - Strengthening democratic accountability. - Improving essential services to the public. - Enhancing gender equality and female empowerment. Funding levels The requested budget allocation for Jordan in fiscal 2014 is $670.5 million. This is 4 percent higher than the previous year’s base appropriation. Base appropriations for 2012 and 2013 were supplemented with almost $200 million in Overseas Contingency Operations funding — $100 million and $96.4 million, respectively. U.S. funding to Jordan is mostly channeled through USAID. In recent years, considerable funding has also been coursed through the Department of Agriculture, Department of State, Millennium Challenge Corp., the Peace Corps, Department of Energy and the Trade Development Agency. Funding priorities The bulk of U.S. aid funding for 2014 is aimed at the peace and security sector ($310.5 million). Foreign military financing will be used to expand Jordan’s border security program, maintain its security systems and train security personnel. Funding for international military education and training will be used to increase the technical capacity of military personnel through training in areas of counterterrorism, border security and internal security. Funding will also be allocated for programs in nonproliferation, demining efforts and related measures. Significant levels of aid will also be set aside for economic development ($233 million). Nearly 80 percent of this funding is channeled as a cash transfer to the Jordanian government to support its balance of payments. Jordan is one of a handful of U.S. strategic partners authorized by Congress to receive general budget support from the United States. Other U.S. economic aid initiatives in Jordan are focused on job creation, developing human resources, assisting micro, small and medium-sized businesses, strengthening public finance, and developing cheaper and more sustainable energy sources. Listed below are budget requests by sector for fiscal 2014. Devex analysis Underpinned by both humanitarian and strategic objectives, the United States’ development partnership with Jordan is likely to remain strong for the foreseeable future. Most recently, in a speech last month, Deputy Secretary of State William J. Burns reaffirmed the United States’ commitment to assist Jordan in achieving its development goals, in recognition of its role as “a force for stability and moderation” in the Middle East. Burns and other Obama administration officials have, however, also stressed the need for broad-based economic and political reforms in Jordan. Amman’s progress on these reforms — particularly in the development of a more inclusive political structure — will likely be considered by lawmakers as they determine the size and scale of USAID’s Jordan program in the years to come. In addition to its USAID program, Jordan is also three years into its five-year compact with the performance-based U.S. aid agency, the Millennium Challenge Corp. The agreement — worth more than $270 million — aims to rehabilitate water infrastructure and sewer systems, as well as wastewater treatment facilities. Contacts: USAID Amman Beth Paige, Mission Director Phone: (962-6) 590-6000 Fax: (962-6) 592-0143 USAID Christopher Saenger, Desk Officer Phone: (1-202) 712-4275 Email: csaenger@usaid.gov Join the Devex community and gain access to more in-depth analysis, breaking news and business advice — and a host of other services — on international development, humanitarian aid and global health.