Jordan Times
Tuesday, February 24, 2004

US supports development, reforms with $18.5 million in economic aid

By Dalya Dajani

The grant agreement, signed Monday between Planning and International Cooperation Minister Bassem Awadallah and US Ambassador Edward Gnehm, will advance the Kingdom's economic development process and support reforms within the modernisation drive.

According to the agreement, funds will support ongoing initiatives under USAID's “economic opportunities” portfolio, which focuses on microfinance, trade development and other programmes aimed at promoting broad-based economic growth.

A large segment of the funds will also be designated for the government's Socio-Economic Transformation Plan (SETP), launched in November 2001 to accelerate economic growth through increased investments in infrastructure, vocational training, health, education and enhanced assistance to the poor.

Awadallah told Gnehm during the signing ceremony that the funds provided under the grant agreement are a valuable contribution to the Kingdom's continued investments for achieving long-term objectives of economic growth and better living standards for citizens. “The funds will help translate the objectives set out under the SETP for supporting our ongoing investments in areas such as human resource training and other key projects that would yield tangible results on the governorate's levels,” said Awadallah.

USAID Mission Director Anne Arnes attended the signing ceremony.

Gnehm said funds would additionally support projects aimed at broadening public awareness of microfinance lending opportunities, which had already made positive strides, particularly among women.

“US funding for micro-finance programmes in Jordan has resulted in over 134,000 loans to over 58,000 borrowers,” indicated Gnehm. “Last year, 75 per cent of those borrowers and 41 per cent of the loans disbursed were outside of Amman.”

USAID, which embarked on its mission in Jordan in the 1950s, has been a main tool in channelling assistance to the Kingdom in the three areas of economic opportunities, the social and health sectors and water. This year, the agency has earmarked $348.5 million to supports projects in these fields in the Kingdom, compared to $7 million in 1996.

The grant will also support projects in the Aqaba Special Economic Zone and continued modernisation of the Jordanian customs services.

According to Gnehm, the Jordanian customs have already yielded “significant advances” in its handling of exports and imports through the implementation of electronic processing.

The US ambassador said support would also be extended to the Jordan-US Business Partnership (JUSBP) which he highlighted as having assisted Jordanian manufacturers expand their scope of export markets.

“This partnership has led to over $68 million in Jordanian exports, many in nontraditional export sectors, since October 2002,” Gnehm indicated.

“These are great results and help expand the circle of people who benefit from other bilateral initiatives, like the US-Jordan Free Trade Agreement — something we all want to see more of,” he said.

Awadallah highlighted the noticeable growth in the trade volume between Jordan and the US in the years that followed the signing of the free trade agreement (FTA) in 2000. He said that national exports to the US stood in 2003 at $660 million, compared to $13 million in 1999.

In the period from 1999-2003, US grants to Jordan accounted for 60 per cent of the total grants the Kingdom received from world countries.

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