Attachment 12- USAID Jordan Country Strategy - Final - March 2010.pdf

USAID/Jordan Country Strategy

2010 – 2014

March 2010

USAID/Jordan Country Strategy: 2010 – 2014

Table of Contents

Acronyms

I. Executive Summary

II. Introduction

A. Country Context B. Host Country Priorities and Political Commitment to Reform

III. Overall Strategic Approach and Priorities

A. U.S. Foreign Policy Goals B. Strategic Vision and/or Themes for U.S. Foreign Assistance C. Summary of Assistance Objectives (AOs) D. Development Hypothesis E. Linkages F. Donor Coordination

IV. Detailed Discussion of Assistance Objectives

Assistance Objective 1 – Democratic Reforms are Strengthened Assistance Objective 2 – Water Resources Management is Enhanced Assistance Objective 3 – Social Services are Improved

IR 3.1: Education and Life Skills are Improved IR 3.2: Health Status for all Jordanians is Improved IR 3.3: Access to Social Services for the Underprivileged is Increased

Assistance Objective 4 – Economic Competitiveness Strengthened

V. Appendices

A. Results Framework B. Bibliography of Relevant Technical Analyses

Acronyms

ABA – American Bar Association ADR – Alternative Dispute Resolution ADC – Aqaba Development Corporation AFD – French Development Agency AO – Assistance Objective ASEZA – Aqaba Special Economic Zone Authority CDC – Center for Disease Control CIDA – Canadian International Development Agency CP – Conditions Precedent CSO – Civil Society Organization CSR – Corporate Social Responsibility DCA – Development Credit Authority DCU – Development Coordination Unit DHS – Demographic and Health Survey DLI – Development Leadership Initiative ECE – Early Childhood Education EFA – Education for All ERfKE – Education Reform for the Knowledge Economy ESF – Economic Support Funds EU – European Union FDI – Foreign Direct Investment FMF – Foreign Military Finance FSN – Foreign Service National FTA – Free Trade Agreement GDA – Global Development Alliance GDP – Gross Domestic Product GEF – Global Environment Facility GOJ – Government of Jordan GTZ – German Development Agency ICT – Information and Communications Technology IPR – Intellectual Property Rights IR – Intermediate Results IT – Information Technology JCCP – Jordan Center for Communication Programs JD – Jordanian Dinar JEI – Jordan Education Initiative JHCP – Jordan Health Communication Partnership JICA – Japan International Cooperation Agency KAFD – King Abudullah II Fund for Development MCC – Millennium Challenge Corporation MCH – Maternal and Child Health MCM – Million Cubic Meters MDG – Millennium Development Goals MEPI – Middle East Partnership Initiative MOE – Ministry of Education MoEnv – Ministry of Environment MOPIC – Ministry of Planning and International Cooperation MOJ – Ministry of Justice MOU – Memorandum of Understanding M/SMEs – Micro, Small and Medium Enterprises NAfKE – National Assessment for Knowledge Economy NGO – Non-Governmental Organization NPS – National Population Strategy OBO – Overseas Building Operations

OE – Operating Expenses PHC – Primary Health Clinics (or Centers) PPP – Public Private Partnership RMS – Royal Medical Service SME – Small and Medium Enterprise UNDP – United Nations Development Program UNESCO – United Nations Education, Scientific and Cultural Organization UNFAO – United Nations Food and Agricultural Organization UNFPA – United Nations Population Fund UNICEF – United Nations Children’s Fund UNIFEM – United Nations Fund for Women U.S. – United States USAID – United States Agency for International Development USPTO – United States Patent and Trademark Office WTO – World Trade Organization ZENID – Queen Zein Al Sharaf Institute for Development

I. Executive Summary

The USAID/Jordan Country Strategy for 2010 – 2014 aims to update and extend the Mission’s existing strategy, dated 2007 – 2011 and approved in 2006. USAID/Jordan embarked upon the strategy update in recognition of several significant changes in the strategic environment and budget governing the Mission’s program. The major focus areas of the approved 2007 – 2011 Strategy remain water, environment, health, education, democracy and governance, and economic growth. Energy, as well as an increased emphasis on civic participation and human rights within the democracy and governance portfolio, is new. Further, youth and poverty alleviation serve as an overarching, cross-cutting strategic lens that defines our approach under each of these assistance areas. The Mission has added new youth and poverty alleviation activities and plans to expand or modify programs ranging from job skills training to local governance to more sharply focus on economic opportunities, improved living standards, and increased participation by the young and the poor. These changes, and USAID/Jordan’s approach to addressing the new development challenges that accompany them, are summarized below.

Jordan’s strategic importance as a vital U.S. partner in the Middle East has increased markedly since the start of the war in Iraq, and continues to grow. Long a voice for peace, moderation, reform, and interfaith dialogue, Jordan’s leadership has continued to play an essential role in advancing Middle East Peace. Further, Jordan is a tireless partner in advancing stability along its border with Iraq to the East, and, over the past five years, has absorbed significant numbers of Iraqi refugees. The strategy recognizes that economic assistance works in harmony with Peace and Security programs to foster a more stable and secure Jordan. Non-military aid complements military and security assistance by addressing short-term development challenges such as improving living standards for refugees, as well as fostering economic growth and increased participation that will help to maintain stability in Jordan in the future.

Over 70 percent of Jordan’s population is under 30, and 60 percent of working age youth are currently unemployed. Approximately 80 percent of the young and unemployed are female.1 Jordan’s leadership is keenly aware of the need to provide adequate channels for positive youth participation in all aspects of Jordanian life. Youth development has therefore been prioritized and expanded across USAID/Jordan’s portfolio.

Further, Jordan’s youth are a major part of Jordan’s newly-recognized and growing cohort of urban poor. One-eighth of Jordan’s population is below the poverty line, and over 60 percent of the Kingdom’s poor live in cities. More than 80 percent of households report a 25-50 percent increase in their food, energy and transportation expenditure over the past year, and the rate of food insecurity is 4.5 percent in urban areas.2 Though Jordan is a Lower Middle Income Country, and has made remarkable strides in developing its economy as a model for the region, the benefits of growth have not meaningfully translated into improved living conditions for the most vulnerable. To date, rural “poverty pockets” have received the lion’s share of both Government of Jordan (GOJ) and donor poverty alleviation resources. Evidence suggests, however, that donor efforts are better concentrated on the cities where 75 percent of the country’s population live and work. This strategy therefore features a strong, overarching emphasis on urban poverty alleviation both through new economic growth and social services programs, and through modifications to existing projects across all assistance sectors.

Further, the growing cities that house the majority of Jordan’s poor are becoming increasingly stressed as they cope with the interlinked challenges of rapid population growth and resource scarcity. At the beginning of the global economic crisis in 2008, fuel prices hit record highs, severely stressing household budgets. Jordan imports 96 percent of its energy resources and is therefore much more vulnerable than its oil-rich neighbors to potentially destabilizing inflation

1 Unemployment in Jordan report, European Union, 2005 2 Food Security Survey in Poverty Pockets, World Food Programme, 2008 when fuel prices spike. The country also remains severely water-poor, and struggles to balance policies and public engagement needed to manage demand in a sustainable fashion with ever-more costly solutions to increase supply. The USAID/Jordan program therefore features increased emphasis on sustainable water and energy development through 2014, via a balanced program of technical assistance, training, and infrastructure. The goal is to support Jordan in meeting its population’s resource needs in a sustainable fashion.

II. Introduction

A. Country Context

Jordan is a principal voice for moderation, peace and reform in the Middle East. Its central geographic position – bordered by Iraq, Syria, the Palestinian Territories, Israel and Saudi Arabia

– brings it into constant contact with regional turbulence that affects its political climate and its economy. In this volatile environment, Jordan remains a model of stability and development progress in the region.

Since 1999, the GOJ has made significant progress in economic reform, and has taken important steps to advance social and political development. Amid continued political unrest in the region, Jordan’s commitment to economic reform resulted in a 7 percent economic growth rate over the past five years. New jobs are being created, basic and higher education systems are being improved and realigned to meet the demands of the job market, the overall health status of Jordanians is good with the public health service delivery system reaching the majority of citizens, and new facilities and management systems are helping to address the enormous demands placed on Jordan’s scarce water resources.

Despite these achievements, Jordan faces difficult and persistent challenges. The fundamental development challenge is a growing imbalance between scarce natural resources and the jobs and economic growth needed to fuel Jordan’s development and provide all Jordanians – including women, growing numbers of youth, and the urban poor – with opportunities to prosper and participate. The fundamental societal challenge is rising social conservatism and an associated “culture of shame” – cultural attitudes towards acceptable work for Jordanian women contribute to their low rates of participation in the workforce; unemployment among youth, poverty, and a dependence on third-country labor in many sectors of the economy.

Jordan’s population, currently estimated at 6.2 million, is growing rapidly, and is projected to more than double over the coming 30 years. Despite GOJ commitment and past progress, the total fertility rate remains high at 3.6 and has not changed appreciably over the past five years. The current rates of infant and under-five mortality rates are still high at 20 and 22 per 1,000 live births, respectively, and while adequate maternal health services are available nationwide, the quality and effectiveness of healthcare needs more attention. Furthermore, infectious diseases are still a cause of morbidity and mortality, while at the same time chronic non-communicable diseases are reaching alarming levels – with prevalence of hypertension among Jordanians 18 years and older reaching 26 percent, hypercholesterolemia 36 percent, diabetes 16.5 percent, obesity 36 percent, and smoking 26 percent.3

The rapid increase in population further compounds the problem of water scarcity and heavy dependence on imported energy. Jordan currently ranks as the world’s tenth driest country4, and its current demand for water vastly outstrips available renewable fresh-water resources. Annual per capita water availability has declined from 3,600 m3 in 1946 to approximately 179 m3 today.

Constructing additional infrastructure, increasing extraction of groundwater resources, pursuing nuclear energy, and developing oil-shale resources are prioritized by the GOJ as supply-side

3 Behavior Risk Factor Surveillance Survey, 2007 4 Aquastat – FAO’s information system, March 2009 solutions to water and energy challenges, but Jordanian society and institutions must also bolster their adaptive capacity to address water and energy scarcity over the long run.

Although Jordan boasts high literacy and school completion rates and has made steady progress in increasing access to education and eliminating gender disparities, the quality of education remains uneven, particularly in poor areas. Graduates still lack the skills required in an evolving world and are under-prepared for 21st-century jobs. With 70 percent of Jordan’s population under 30, it is estimated that 80,000 new jobs will be needed each year to avoid higher levels of unemployment and poverty. Already the unemployment rate among youth between the ages of 15 and 24 years is estimated at nearly 60 percent. Youth have few safe social and recreational outlets, are not adequately engaged in positively shaping the environment around them, are prematurely led into adult roles, and have a heightened risk of delinquent behavior. Left unaddressed, Jordan’s youth demographic bulge is the largest potential source of political, social, and economic instability.

Economic development efforts in Jordan suffer from the weakness of both public and private sector institutions. Governmental bodies need to develop into strong decision-making and regulatory institutions to manage issues effectively. Businesses are not fully poised to enter global markets in a significant way, hampered both by capacity and competitiveness gaps and by regulatory challenges.

Further challenges include persistent unemployment and poverty. The official unemployment rate is over 13 percent with jobs not being created fast enough to absorb the growing workforce.

Poverty stands at 14.2 percent; the poor represent an eighth of Jordan’s population, and over 60 percent of the poor live in Jordan’s urban centers. The rate of food insecurity is 4.5 percent in Jordan’s cities, and up to 11.3 percent in rural areas. Forty-four percent of households reported a disruption in their food consumption routine, with almost 88 percent of those reducing the overall quantity of food.5 As water and jobs evaporate in rural areas, youth and families are migrating to already overcrowded neighborhoods in cities ill-equipped to manage the influx. Water and sanitation facilities, schools, hospitals, health clinics, and social service providers are overburdened. Left unaddressed, the intersection of unmet social and political demand with resource scarcity is a threat to Jordan’s stability.

Jordan’s reliance on the 96 percent of its energy that is imported is a heavy drain on public and private resources. Significant increases in the cost of petroleum products in 2008 coincided with the removal of subsidies. Meanwhile, consumers faced five-year fuel increases of over 300 percent. This convergence of events has helped stimulate interest in energy conservation and in rapid development of Jordan’s energy sector, including renewable sources of power.

Further, Jordan faces a growing deficit reaching 12.1 percent of GDP in 2008, with significant internal debt of JD 5.7 billion or 40.6 percent of GDP, external debt of JD 3.6 billion or 25.7 percent of GDP, and massive budgetary expenditures of 38.2 percent.6 The GOJ looks to donors to alleviate these pressures via loans and debt relief, though it recognizes the need to implement stronger macroeconomic policies to shore up the country’s economy against regional and global economic downturns.

Jordan has made considerable progress since 2005 in its adoption of democratic institutions.

The 2007 municipal and parliamentary elections witnessed unprecedented levels of civic participation with approximately 60 percent of registered voters turning out to vote, and the percentage of women officials increased because of a new 20 percent quota. Significant pieces of legislation, such as the Municipal Law and Trafficking in Persons Law, were passed during the past two years. Nonetheless, the political system remains largely centralized and tribally-focused, and public participation in political life lags. The King dissolved Parliament in December

5 Food Security Survey in Poverty Pockets, World Food Programme, 2008 6 Central Bank of Jordan, 2008

2009 and appointed a new government with a mandate to reform the electoral system. He also requested that Government develop and implement a decentralization plan. Elections at the national level are expected by late 2010. A more independent and accountable judiciary is still necessary. Women’s rights and lower rates of women’s participation represent areas for continued attention. Jordan’s monarchy and government have been vocal in expressing the need for concerted action to stop so-called “honor killings,” but the problem persists. Finally, as citizens become poorer due to increasing economic pressures, confidence in government could erode further if the government is not able to respond effectively. The difficult balance between maintaining security and encouraging openness remains a challenge for the GOJ and continues to be compounded by regional conflicts that exacerbate social and political tensions in Jordan.

B. Host Country Priorities and Political Commitment to Reform

Jordan has made remarkable progress in economic and social reforms over the past ten years, and has taken substantial steps to advance democratic reform as well. Jordan’s vision for development is enshrined in its National Agenda, an ambitious action plan stemming from the “We Are All Jordan” initiative launched by King Abdullah II to broaden and intensify the country’s reform efforts. This National Agenda aims to improve the quality of life for all Jordanians by instituting economic and legal reforms, developing human resources, ensuring proper health care, promoting development in rural areas, and making government more efficient. In dissolving Parliament in December 2009 and setting decentralization and electoral reform as priorities, the King reemphasized his strong commitment to institutionalizing political change as envisioned in the National Agenda.

Jordan’s National Water Master Plan and the formation of a Royal Water Committee in 2008 are strong indications of the GOJ’s commitment to making hard choices to help govern and coordinate management of Jordan’s scarce water resources. King Abdullah unveiled a new National Water Strategy in April 2009. It proposes measures to improve water use efficiency improvements, strengthening legislative and institutional frameworks, restructuring tariffs, increasing wastewater treatment and reuse, increasing private sector participation, and providing needed infrastructure investments. An associated Action Plan has been developed to implement the Strategy.

Significant reform efforts undertaken by the GOJ include the Education Reform for the Knowledge Economy (ERfKE) initiative, a set of two programs adopted in July 2003 and March 2010 that address future human capacity requirements through improved early childhood, primary, and secondary education. Jordan was also the first Arab country to develop a National Youth Strategy. The comprehensive strategy focuses on developing Jordanian youth who are aware of themselves and their abilities, loyal to their country, and proactively engaged in its progress and development. Jordan is also embarking on a major five-year reform effort to improve quality in a higher education system that has witnessed annual enrollment growth of 14 percent over the past eight years. Increasing opportunities for the poor to pursue higher education is also a priority.

The landmark passage of the National Population Strategy (NPS) in March 1996 and the passage of the Reproductive Health Action Plan, a sub-strategy of the NPS, in April 2004 made clear that Jordan was serious about family planning and recognized population growth rate as a major constraint to Jordan’s development prospects. Furthermore, the Ministry of Health has for the first time developed a comprehensive four-year Strategic Plan that targets preventative and curative health services, with a greater focus on primary health care.

Economic initiatives form an important part of the GOJ’s reform programs. Jordan has been a member of the World Trade Organization (WTO) since 2000. In 2001, Jordan signed a Free Trade Agreement (FTA) with the United States. The Aqaba Special Economic Zone was established as a model for efficient, effective, and transparent development and governance.

The country is eager to satisfy WTO and U.S.-FTA standards and requirements, which are necessary for continued participation in the FTA. More recently, the Jordanian Government adopted a National Energy Strategy to reduce demand via energy efficiency measures and integration of renewable energy sources, implement required legal and regulatory measures, and aggressively seek private sector investment in the energy sector.

Jordan remains a key partner for the United States in advancing strategic priorities in the Middle East. USAID’s development program, as a major component of the U.S. Government’s strategic partnership with Jordan, reflects this collaborative relationship. It is aligned with the National Agenda and Jordan’s reform efforts, and fully committed to help Jordan succeed in serving its population, growing its economy, preserving stability, and promoting a peaceful Middle East.

III. Overall Strategic Approach and Priorities

A. U.S. Foreign Policy Goals

The central U.S. foreign policy goal in Jordan, as stated in the Mission Strategic Plan, is to help develop a stable nation-state moving steadily towards greater economic prosperity and democratic governance. To help achieve this goal, USAID supports the GOJ through three Goal Areas: Governing Justly and Democratically, Investing in People, and Economic Growth. In the coming years, USAID will target its efforts towards encouraging improvements in the enabling environment for civil society, women’s rights, elections, and local government; developing the capacity, independence, and transparency of the judiciary and legislature; supporting decentralization and fostering civic participation in local governance; and developing a more professional media that plays a central role in the public debate. Increasing water use efficiency in high usage sectors is a major prerequisite to improving the quality of life for Jordanians and advancing economic growth. Education and youth programs focus on equipping Jordan’s youth – especially the disadvantaged – with employability and life skills and linking them with work opportunities. Cross-cutting poverty alleviation programs seek to expand economic opportunities for the urban poor while improving social services and promoting a family-centered approach to addressing the social drivers of poverty. Improving access to family planning/reproductive health and family health services will benefit the neediest Jordanian citizens, especially women, children and youth. Improving private-sector responsiveness and export competitiveness while creating jobs and enhancing workforce preparedness will spur economic growth. At the same time, USAID encourages the GOJ to address macroeconomic stabilization through measures such as deficit reduction and tax reform, and to boost investor confidence through the adoption of transparent budget-setting procedures. Promoting energy efficiency measures through raising public awareness and promoting changes in energy use practices, incentive-based policy reforms, and facilitating private sector investments in the renewable energy sector will reduce energy consumption and thereby reduce the need for new generation capacity.

In implementing its programs in Jordan, USAID coordinates closely with other U.S. agencies, including the State Department’s programming in the areas of democracy and governance, exchange programs, and media. USAID also partners with the U.S. Geological Survey, Bureau of Reclamation, Environmental Protection Agency, Forest Service, and Department of Agriculture on groundwater monitoring, dam safety, watershed management, and overall environmental protection. Similar collaborations have been established with the U.S. Treasury and Commerce Department on fiscal reform and private sector competitiveness, the Department of Labor on workers’ rights, and the Department of Interior and National Park Service on park management and related services. On health issues, USAID works closely with the Center for Disease Control (CDC) on developing Jordan’s surveillance systems and protocols for infectious diseases.

Finally, recognizing Jordan’s strong commitment to reform, the Millennium Challenge Corporation (MCC) has selected Jordan as eligible for Compact status. USAID confers regularly with the MCC and GOJ officials to support development of Jordan’s MCC proposal, which complements and builds upon current USAID programming in the water sector. USAID collaborates with the U.S. Department of Energy to promote green building practices.

B. Strategic Vision and/or Themes for U.S. Foreign Assistance

USAID’s vision is to help Jordan become a more prosperous, democratic country where the government is increasingly accountable to its people, continues to play a central role in promoting peace and democracy in the Middle East, and that is an active participant in the world economy.

In implementing programs envisioned in this strategy, USAID/Jordan will focus on two central cross-cutting themes to maximize potential program synergies: youth and poverty alleviation.

Attention to both issues – in every development sector under the strategy – is central to helping Jordan, with its young and growing population, thrive in the future as a prosperous, democratic, and stable state. USAID emphasizes other important themes to maximize impact of our program.

These include, promoting women’s participation and rights, engaging religious leaders across development sectors, tackling environmental degradation, integrating information technology into the education system and into government policymaking, supporting public-private alliances and partnerships, and combating corruption.

USAID/Jordan will endeavor to disaggregate indicators by gender and include the results in various monitoring reports and evaluations. This will always be done for all training projects and as well as training elements within other projects.

Public outreach is an important element of implementing USAID’s strategy in Jordan. Raising awareness among Jordanian citizens, especially youth, about the impact of the U.S.

Government’s foreign assistance efforts to enhance the lives of average Jordanians helps build positive understanding of the U.S.-Jordan relationship and the role of the U.S. in the region.

USAID implements a far-reaching media and communications program focused on using radio, TV, print media, the Internet, and university and community events to reach Jordan’s youth and engage them in our programs.

C. Summary of Assistance Objectives (AOs)

AO 1: Democratic Reforms are Strengthened. USAID’s democracy and governance efforts will focus on removing the principal obstacles to democratization by addressing challenges such as increasing judicial independence and accountability, increasing opportunities for civic participation, improving institutional capacity to develop and implement democratic policies and regulations, and enhancing local-level decision-making authority. Programs will also fuel the demand for democratic institutions and good governance by promoting an independent media, representative political parties, free and fair elections, an engaged civil society that fosters active citizen engagement in public life, and support for gender equality and human rights.

AO 2: Water Resources Management is Enhanced. Demand for water exceeds Jordan’s available renewable fresh-water resources. Significant improvements in the efficiency of water use are possible, but hard choices and trade-offs are necessary. Promoting activities to bolster the adaptive capacity of Jordanian society and institutions to address water scarcity will help water sector stakeholders improve their capacity to make the right choices. Community empowerment, institutional reform, integrated water resources management, and water and wastewater infrastructure will be emphasized.

AO 3: Social Services are Improved. To help Jordan achieve sustainable improvements in the well-being and productivity of its population, USAID will invest in education, health, youth, and family-centered social services. Emphasis will be placed on family planning and reproductive health, population policy, maternal and neonatal health, capacity building and health systems strengthening, and behavior change for healthier lifestyles. Education and youth activities aim to strengthen the formal education system and provide youth with greater social, financial and educational opportunities. Poverty alleviation activities seek to improve social services and engage community and religious leaders and families in addressing social issues such as domestic violence.

AO 4: Economic Competitiveness Strengthened. USAID’s aim is to spur economic growth and ensure that benefits are reaching deep within the local communities and beyond the main cities. This will be accomplished by targeting business expansion, private sector competitiveness, workforce development, tourism, energy efficiency, and a growing renewable energy generation sector as powerful engines of economic growth. In addition, a focused poverty reduction initiative, closely linked to USAID Jordan’s other three program areas, will ensure that the most disadvantaged segments of the population are able to reap the benefits of economic growth via microenterprise, entrepreneurship, and training.

D. Development Hypothesis

USAID/Jordan’s overarching, strategic goal is helping Jordan become a more prosperous, democratic country with a government that is increasingly accountable to its people, continues to play a central role in promoting peace and democracy in the Middle East, and is an active participant in the world economy. USAID/Jordan’s development hypothesis functions on the assumption that this strategic goal will be realized through:

1) An accountable and competent judiciary, greater decentralization, free elections and more breathing space for civil society will develop the legal, institutional, and societal foundations for democratic governance;

2) Investments in the adaptive capacity and sustainable management of resources will balance the demand for scarce water and energy;

3) Improvements in education and life-skills training for youth, improved public health service delivery and increased access to social services for the underprivileged will better equip Jordanian youth for the global economy, promote healthier families and establish a stronger social services network for the vulnerable sectors of society; and

4) A more liberalized and competitive private sector – coupled with increased energy efficiency – that will help fuel economic growth and reduce poverty.

As outlined in this strategy, USAID/Jordan assistance will focus on these intermediate results as a means to achieve its overall goal. The indicators listed for both the Assistance Objectives (AO) and Intermediate Results (IR) were derived primarily from the current Program Monitoring Plans (PMP). PMPs will be periodically updated as new programs and activities are designed and implemented which will result in changes in indicators to better measure performance and impact.

E. Linkages

The four goals described above are inextricably linked to better address the similarly linked development challenges facing Jordan. Water, energy, and economic growth programs, for example, work hand in hand to link demand management approaches and conservation to more sustainable strategies for economic development. Youth and poverty alleviation/reduction efforts to be implemented as part of the third and fourth goal also link to democratic governance, economic growth and social sector goals through a multidisciplinary approach to project design and management centered on an active Mission youth/poverty working group. The poverty program will link diverse elements together at the community level to provide visible, tangible opportunities to the most vulnerable Jordanians. Social services organizations targeted traditionally through USAID/Jordan’s social sector programs, for example, will engage with local leaders and citizens to broaden opportunities for job creation, family planning services, and youth engagement. Youth programs, similarly, bring together education, democracy, health, and economic growth development approaches to cultivate skills and broaden economic horizons for the country’s most disadvantaged youth.

This crosscutting strategy is enshrined in new Mission program design guidance that centers on a multisectoral approach to program development. Cross-cutting teams now collaborate to develop program designs, replacing previous design and implementation approaches centered on a single technical area or assistance objective.

F. Donor Coordination

USAID is by far the largest donor in Jordan with an annual core (non-supplemental) assistance budget ranging from $250 – $363 million over the past four years. Levels for the coming three years are expected to remain at approximately $360 million annually, as per the U.S.-Jordan Memorandum of Understanding signed in 2008. USAID coordinates with all donors to structure cooperation to ensure that synergies are achieved and redundancy minimized. Coordination takes place at both the strategic and technical levels through regular meetings. As Jordan has committed to donor coordination principles outlined in the Paris Declaration, its government is expected to be the focal point for donor coordination in the coming years. The Ministry of Planning and International Cooperation (MOPIC) therefore initiated in 2008 quarterly donor coordination meetings centralized around ten themes, including trade and investment, water, energy, environment, poverty alleviation and local development, education and vocational training, and gender. Furthermore, the Ministry of Education’s (MOE) Education Reform for the Knowledge Economy is a multi-donor, coordinated reform effort led by the World Bank and managed by a project management unit at the MOE. The Royal Water Committee and the Royal Advisory Committee on the Energy Sector are mandated with developing national strategies for water and energy, in coordination with donor agencies, to ensure conservation and better management of these resources.

The United Nations manages a Donor/Lender Group that has several sub-groups on topics such as water and education. In areas where formal donor coordination groups do not exist, USAID has established direct collaboration avenues with donors working in the same sector – examples include tourism, workforce development, health, and local governance. Currently, USAID is taking the lead in coordinating water and rule of law efforts. It also plans to take the lead on coordinating youth development in the future. USAID will be the biggest donor of the second phase of the MOE’s Education Reform for the Knowledge Economy Program.

Other bilateral donors are active in Jordan as well. The Germans focus their efforts on water infrastructure, capacity building, and school construction, while the Japanese and Canadians are significant players in vocational training, workforce development, and women’s rights. The French are involved in large water projects. Multilateral donor and financial institutions, such as the European Union (EU) and World Bank, tend to support policy and financial reforms, decentralization, and institutional capacity building.

IV. Detailed Discussion of Assistance Objectives

Assistance Objective 1 – Democratic Reforms are Strengthened

A. Situation Analysis/Problem Statement

Jordan is a monarchy that has initiated significant steps to advance comprehensive reform. Its ambitious National Agenda emphasizes key components of political reform that would result in a significantly more open and democratic society, including: citizen participation, an independent judiciary, trust between citizens and public institutions, media sector development, accountability, and transparency in government affairs.

In the past two years, Jordan has witnessed a number of key changes in the policy environment.

The May 2007 municipal election law resulted in fully-elected municipal boards (previously municipal boards were 50 percent appointed) and record citizen participation in the July 2007 municipal elections. The percentage of women local officials increased dramatically because of the law’s 20 percent quota (no quota existed previously). Parliamentary elections in November 2007 allowed for local civil society, for the first time in Jordan’s history, to engage in the political process as official election observers. After the passage of a new Civil Society Law in September 2008, civil society organizations partnered in an unprecedented move to lobby the GOJ to amend this law to better serve the interests of civil society. The GOJ responded by proposing amendments to Parliament, most of which were passed during Parliament’s extraordinary session in August 2009. Civil Society organizations will continue to lobby for additional changes. Finally, amendments to the Public Gathering Law submitted to Parliament in 2009 would ease overly restrictive aspects by allowing political parties, professional associations and non-profit organizations to conduct gatherings without executive approval.

B. Critical Assumptions and Risks

Despite advancements in and commitment to political reform, primary challenges remain. The administration of justice is slow and inefficient. As a result, citizens and businesses have little confidence in the justice sector and needed investment is deterred. Citizen participation in decision-making is low at both the national and local levels and popular “ownership” of Jordan’s reform agenda is limited. Jordan’s civil society sector suffers from excessive state control which limits citizens’ ability to freely organize, build professional and financially independent organizations, and fully participate in political development. Substantial cultural and legal restrictions impede women’s rights in Jordan. Jordan’s highly centralized government structure does not promote adequate checks and balances between the executive, legislative and judicial branches. In December 2009, the King dissolved Parliament and appointed a new government with a mandate to implement both electoral reform and decentralization. National elections are expected by late 2010. Over-regulation and state control of Jordan’s media sector impedes the flow of information to citizens and hampers the development of a strong civil society.

Furthermore, Jordan’s journalists lack the skills to promote balanced reporting and media outlets are financially weak.

The difficult balance between maintaining security and encouraging openness remains a challenge for the GOJ and continues to be compounded by regional events. Economic pressures and inflation are increasing at unanticipated rates. As citizens become poorer, confidence in government could erode further if the government is not able to respond effectively. Continuing conflicts in the region and the impact of the global financial crisis have increased pressure on local society and the economy, increasing the cost of social services and adding to Jordanian national security concerns.

C. Intermediate Results (IRs)

USAID’s democracy and governance portfolio supports the vision outlined in Jordan’s National Agenda and U.S. foreign policy goals. The programs support all four U.S. Government emphasis areas, including rule of law and human rights, good governance, elections and political processes, and civil society. Activities under the democracy and governance portfolio will generally be nation-wide in scope.

IR 1.1: Respect for Rule of Law and Human Rights is Increased. U.S. assistance in this area directly supports the U.S. foreign policy priorities of strengthening the rule of law and sustaining an independent and accountable judiciary - both cornerstones of democracy and necessary components of the transformational diplomacy goal of government institutions capable of sustaining development progress. Over the strategy period, U.S. support will help build the capacity of key institutions, including the Judicial Council, the Judicial Institute and the Ministry of Justice. It is expected that improved systems and increased judicial independence, accountability and integrity will promote the transparency of judicial decision-making, enhance the investment climate, and improve the public’s perception of the justice system.

Jordan’s human rights record continues to be a matter of concern. As stated above, women are not treated equally under the law. In particular, the penal code allows for light sentences for those who commit a crime in a “state of fit or fury” resulting from an unlawful or dangerous act on the part of the victim. This is often used in defense of those who commit “honor killings,” or the murder of a person for breaking social conventions, leading in some cases to sentences as light as six months. Queen Rania is among a number of women’s rights activists who have pushed for stronger legislation on honor killings. Draft legislation sent to Parliament is on hold, as Parliament was dissolved in December 2009. Freedom of expression, while legally protected, is not upheld in practice. There is a growing problem with trafficked and exploited workers as well. U.S.

support will include activities focused on improving the legal environment, providing legal aid for victims, supporting women’s shelters, and access to justice.

IR 1.2: Governance is More Transparent and Decentralized. Good governance is critical to all U.S. development objectives in Jordan. Effective governance, including strong institutions and transparent practices, is essential for facilitating sustainable economic growth, improving and expanding health and education services, properly managing water resources, improving civic education, alleviating poverty, and enhancing the status of women. Additionally, good governance is essential to ensuring that government, civil society, and private sector institutions are capable of sustaining development progress. Over the strategy period, USAID will focus on improving governance at the local level through our support of the GOJ's decentralization plan and through working directly with municipal governments on improving administration, service delivery and citizen participation. The decentralization program will also link to the Mission’s cross-sectoral urban poverty alleviation/reduction initiative.

IR 1.3: Elections are Free, Fair and Transparent. To help Jordan continue to develop broader-reaching democratic principles, U.S. assistance supports expanded political competition and participation, including implementation of existing and pending laws and amendments related to elections, civil society and political parties, and supporting more pluralistic, fair, broad-based and representative political competition. Over the strategy period, U.S. assistance will include support to GOJ to develop a new election law, improve elections administration, and engage civil society in observing elections. Results will include an enhanced elections law that will contribute to free, fair and transparent elections, political parties and individuals better able to draft comprehensive platforms, form coalitions, and participate in party blocks; increased inclusion of women in the electoral process; and more representative local, regional and national legislative bodies.

IR 1.4: Civil Society Has More Political Rights and Greater Professional Capacity.

Promoting civic participation, interfaith dialogue and free and independent media are core components of U.S. foreign policy in Jordan. U.S. activities in this area promote a vibrant civil society that has both the political rights and professional capacity to express views about and participate in public affairs. U.S. programs aim to fuel the demand for democratic governance and address the lack of political pluralism and social inclusion in public affairs, which inhibit democratization. Over the strategy period, U.S. programs will support three main areas: civil society strengthening; media development; and women’s rights. The goals of this programming will be to improve the legal environment for civil society with regard to registration, fundraising, and participation restrictions and requirements; improve the organizational and advocacy capacity of civil society organizations (CSOs) and create more opportunities for their involvement in public affairs; and increase participation of women and persons with disabilities in public life.

Additionally, U.S. support will work to foster a more open operating environment for media, enabling the provision of quality information to citizens.

D. Coordination of U.S. Efforts

USAID is the principal U.S. agency providing democracy and governance assistance in Jordan.

USAID coordinates its activities with the Embassy’s Political Section, Public Affairs Section, and the Middle East Partnership Initiative (MEPI). USAID also administered the Millennium Challenge

Corporation’s (MCC) Threshold Country Program for local governance development, which concluded in September 2009.

Activities will also include a greater emphasis on partnerships, to include issue-based partnerships within USAID’s priority goals focusing on the themes of gender, youth, poverty alleviation, corporate social responsibility, and private sector partnerships to develop Global Development Alliances (GDAs) that foster public-private partnerships (PPPs) and leverage corporate social responsibility investments in civil society organizations and poverty alleviation.

E. Role of Host Country/Regional Organizations/Private Sector Partnerships

The GOJ’s stated priorities under the National Agenda include increased citizen participation, rule of law, judiciary independence as well as greater trust between citizens and public institutions and good governance, including accountability and transparency in public affairs. USAID’s democracy and governance programs are synchronized with these priorities and all activities are coordinated with the GOJ through the appropriate line ministries.

USAID also actively participates in numerous donor working groups at the technical level. The EU, France, Denmark and the United Nations are supporting programs for the restructuring and capacity building of the Ministry of Justice (MOJ) and Judicial Institute of Jordan. UNIFEM works on budgeting, and the United Nations Development Program (UNDP) and Konrad Adenaur Foundation provide support to parliamentary committees and activities that strengthen the relations between Parliament and civil society. The Friedrich Naumann Foundation is the most active of the German foundations partnering with local organizations to advocate for reform of key legislation such as the political parties law and the law on public gatherings. The Open Society Institute/Soros Foundation Network, Canada and Japan support women’s rights advocacy and NGO initiatives. Finally, the EU, UNESCO, Denmark and Japan provide journalists with training.

Private sector involvement in the democracy and governance sector revolves mainly around research and polling centers. Several USAID programs currently work with the private sector or facilitate public/private cooperation to address project goals. For example, USAID is working with local governments to help identify potential opportunities and negotiate the administration of PPPs. USAID’s media program works largely to improve the capacity and fiscal sustainability of private independent print and broadcast media. This assistance promotes increased financial independence through improved marketing and more precise advertising. Corporate social responsibility figures prominently in USAID’s civil society program.

USAID’s democracy and governance team works with others to develop mechanisms for collaborating, both programmatically and financially, with other teams in the areas of gender, civil society, poverty, youth, and corporate social responsibility. Democracy and health programming is coordinated in the area of preventing violence against women. Civic participation is a key element of the cross-cutting youth and poverty initiatives engaging with local leaders and citizens to identify their needs and participate in developing their communities. Furthermore, the public-private partnership programming under economic growth will advance corporate social responsibility efforts integrated into the democracy and governance portfolio. Finally, intersectoral collaborations, especially between democracy and water, are underway through an interagency agreement with the Embassy’s Public Affairs Section for language training and exchange visits to the United States. The close ties between USAID and the Embassy help advance policy dialogue with the GOJ on municipal and national elections as well as on political/legislative reforms.

F. Anticipated Results

It is expected that Jordan will gradually achieve fundamental changes in democracy and governance, improve institutional and human capacity, and increase citizens’ inclusion in political life. As a result, Jordan will be more likely to win the confidence of both donors and investors. By the end of the strategy period USAID assistance will have contributed to achieving the following results:

Increasingly efficient, fair, and transparent judiciary that enjoys the trust of citizens, provides the legal framework necessary for business and investor confidence, and has the capacity to be administratively and financially independent.

Free and fair parliamentary and local elections that are broadly representative of…