World Bank Considers $900 Million Financing for Jordan’s Economic and Social Development
The World Bank is evaluating up to $900 million in funding for five major projects in Jordan, focusing on economic reforms, social protection, and entrepreneurship. Key proposals include $400 million for social welfare, additional funding for vocational training, and $50 million aimed at supporting startups. This initiative aligns with the recently launched Country Partnership Framework (2024–2029).
The World Bank is currently exploring financing for five significant projects to support Jordan’s economic reforms, social safety nets, key sectors, and entrepreneurship, amounting to a total of up to $900 million. These initiatives reflect the objectives outlined in the Country Partnership Framework (2024–2029) established by the Ministry of Planning and International Cooperation in collaboration with the World Bank.
In the recent fiscal year, the World Bank successfully signed four financing agreements for government projects and programs in Jordan, reaching a total of $1.235 billion. This also included an extra $41 million from various donors, marking the highest funding level within the past five years. To date, the World Bank has disbursed approximately $554 million, accounting for 44.8% of the total allocated funds, with $681 million still available for disbursement.
The financing plan entails up to $400 million allocated to enhance Jordan’s social protection system, which is the largest in the Middle East and North Africa concerning coverage for the underprivileged. This initiative aims to create job opportunities and improve productivity in sectors with high growth potential, thereby aligning with both the National Social Protection Strategy and the Economic Modernisation Vision (2022).
In addition to the above, the World Bank is evaluating a comprehensive $400 million initiative aimed at stimulating economic growth and fostering sustainable job creation through private-sector engagement. This is part of ongoing endeavors to strengthen Jordan’s economy and allure investment.
Furthermore, an additional $5.6 million in funding is being considered for the ‘Masar’ program, which commenced in September with an initial investment of $400 million. This program focuses on improving basic education standards and aligning vocational and technical training with labor market demands, especially for vulnerable groups.
The funding package encompasses a $4 million grant from the Forced Displacement Trust Fund to expand school feeding initiatives, together with a $1 million grant from the Early Learning Partnership Programme for teacher training support. The World Bank is also proposing an additional $50 million to bolster startups and small-to-medium enterprises (SMEs) in Jordan, adding to the success of the Innovative Startups and SMEs Fund (ISSF).
Moreover, the bank plans to extend funding for the “Strengthening Reform Management” program in Jordan by an additional $7.5 million, increasing the total to $23.3 million and extending its lifespan to 2026-2028 to bolster the ongoing economic reform efforts.
The Jordanian government, during the London Conference in February 2019, reaffirmed its dedication to economic reform and sustainable development through a five-year reform framework initially set for 2018-2022 and later extended to 2024. This framework includes systematic political and structural reforms to address pivotal economic challenges and improve the investment landscape.
Despite facing challenges from regional instability, Jordan’s economy reported a growth rate of 2.6% in the third quarter of 2024, as per the Department of Statistics (DoS). The ongoing conflicts affecting tourism and transportation sectors have influenced economic conditions; however, the World Bank’s Global Economic Prospects report predicts growth sustaining at 2.6% for 2024 and 2025, an improvement from the earlier forecast of 2.4%.
The World Bank’s consideration of up to $900 million in financing for Jordan marks a significant step towards enhancing the country’s economic and social development frameworks. With a focus on social protection, vocational training, and entrepreneurial support, these initiatives aim to stimulate growth and improve the resilience of Jordan’s economy. The continued commitment to reform and investment will be crucial in addressing the economic challenges faced by the nation amid regional instabilities.
Original Source: www.jordantimes.com
