Jordan Times
Wednesday, September 1, 1999
American official says economic reform crucial to
end dependence on foreign aid
U.S. to double wheat donation
By Suha Ma'ayeh
AMMAN — American aid to Jordan, which amounted to $200 million in 1999, is earmarked to improve three main fields; tapping new water resources, improving family planning and preserving the environment, a U.S. official said on Tuesday.
Lewis Lucke, Jordan's mission director of the United States Agency for International Development, added that Jordan is ranked high on the list of recipient countries of U.S. foreign assistance.
“We are dedicated to increasing water availability, improving family planning and health programmes and promoting economic opportunities,” he said during a presentation organised by the Amman Rotary Club.
`These funding levels are extraordinarily high, representing by far the largest source of grant assistance to Jordan,” Lucke added.
“They provide Jordan with an important window of opportunity, offering valuable support for a long-term economic restructuring process that can and must take place,” he added.
“Empowering the private sector, enhancing its productivity and making it the engine of growth for job creation is the best way for Jordan to decrease its dependency on foreign assistance,” Lucke told the Jordan Times.
Lucke said the USAID is working with the government of Jordan to design and implement new policy approaches aimed to improve the efficiency of water use in Jordan.
He added that the $30 million Wadi Mousa waste water treatment plant site when completed will play a significant role in preserving the world heritage site of Petra, a major source of revenue for the Kingdom.
Pertaining to health and population, Lucke said by the year 2020, Jordan's population will approach ten million.
“If demographics are destiny, Jordan will be hard-pressed to meet the demands for schools, jobs, medical services, water, and other requirements of the next generation,” he said.
USAID-funded programmes also provides micro-finance loans to less privileged Jordanians interested in expanding their businesses. The number of active clients is approaching 100,000.
At the national level, Lucke said USAID works in partnership with the government of Jordan to make the country more attractive for local and foreign investors.
He said Jordan's future prosperity hinges on its ability to apply international experience in a number of important areas.
`'The approval of new patent laws and intellectual property rights are essential in order for Jordan to take advantage of the international trade opportunities that WTO membership will confer.”
Jordan has shifted to high gear in its long-delayed plans for privatisation and economic reform.
The government has sold part of its share in the Jordan Cement Factories to French giant La Farge, and last month leased the Aqaba Railway Corporation to an American-led consortium, while also setting a final deadline for the sale of 40 per cent of the profit-generating Jordan Telecommunications Company.
A package of ten economic laws is now being discussed at the Lower House of Parliament during this summer's extraordinary session. So far, the House has endorsed legislation that would safeguard intellectual property; a key condition of accession to the WTO. The House is also expected to discuss that Jordanian-European Partnership agreement, signed between Jordan and the EU in 1997.
On Monday, the U.S. gave a $50 million grant to Jordan to help it reduce its foreign debt. Jordan has an external debt of $6.8 billion and is seeking forgiveness for half of it. U.S. President Bill Clinton has pledged to increase economic assistance to Jordan by $300 million over the next three years.
Meanwhile, the Associated Press reported that the U.S. would double its wheat donation to Jordan this year to 200,000 tonnes. U.S. embassy officials said that Jordan and the United States today will sign the $24 million agreement.
The additional aid was requested by the government to help the Kingdom deal with a severe drought affecting the region this year, Ministry of Agriculture Secretary General Mazen Khasawneh was quoted as saying.
Minister of Agriculture Hashem Shboul earlier said that the World Food Programme will also send $12 million worth of grain.