Sustaining Reforms And Poverty Reduction At The Heart Of A New World Bank Country Assistance Strategy For Jordan

Contact
In Washington: Dina El Naggar (202) 473-3245
Delnaggar@worldbank.org

WASHINGTON, May 4, 2006  — The new World Bank Group Country Assistance Strategy (CAS) for Jordan, discussed today by the World Bank’s Board of Executive Directors, places reducing poverty and creating jobs at the heart of the Jordan-Bank Group partnership. The CAS, covering the period 2006-2010, envisages a flexible lending program of US$175 to 540 million over four years and a stepped up program of advisory services and private sector investment.

Jordan has recorded impressive economic and social gains. In the 1990s, Jordan ranked as one of the best reformers, not only in the MNA region but also compared to other middle-income countries. For the Jordanian economy, the challenges in the coming years will be to sustain the economic gains, advance the reform agenda and cushion hardships for the vulnerable while effectively managing external shocks, such as oil price increases.

“Our partnership with Jordan aims at expanding the opportunities and access of the poor and unemployed to participate and benefit more fully in the outcome of these reforms. Our immediate work program focuses on improving the quality of education, modernizing institutions for private sector development and strengthening social protection. Our joint IBRD/IFC agenda supports Jordan’s development objectives as expressed in the National Agenda,” said Joseph Saba, World Bank Country Director for Jordan.

The CAS preparation relied on an extensive dialogue with government, and consultations with civil society and the donor community to define its main themes in accordance with Jordan’s social and economic priorities.

The CAS is designed in 4 programmatic clusters that aim to develop the climate for private sector investment and job creation, enhance the delivery of services to the poor, and support tools of public policy. The 4 clusters are:

1. Strengthening the investment environment for a skill-intensive and knowledge-based economy
2. Supporting local development through increased access to services and economic opportunities
3. Reforming social protection and expanding inclusion
4. Restructuring public expenditures and supporting public sector reform

“The new assistance program envisaged in the CAS will seek to match the sophisticated challenges facing Jordan by focusing more squarely on the quality of institutional reforms, paying more attention to social and local development, and mainstreaming issues of gender, environment, water and energy into the 4 cross-cutting program clusters,” said Paolo Zacchia, Task Team Leader of the Jordan CAS team. “We will also be working closely with the International Finance Corporation (IFC) to provide the necessary support for private sector development in Jordan over the next few years,” he further added.

The IFC strategy in Jordan -as expressed in the CAS- will seek new investment opportunities in the private sector, provide strategic and technical assistance for private sector development and carry on advisory services for private participation in infrastructure and privatization.

The Jordan CAS will address sector governance issues in each of its programmatic clusters as it seeks to offer opportunities for engaging and empowering the poor and unemployed. Core governance, such as public procurement and public financial management are also reflected in the CAS.  This mainstreaming of governance implies that all Bank Group interventions will be as much about improving governance as they will be about improving sector performance.

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For more information about the World Bank’s work in Jordan, please visit

www.worldbank.org/jo

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www.worldbank.org/projects