AMMAN —
Minister of Planning and International Cooperation Nasser Shraideh said on Tuesday that 47 percent of the aid
contracted to Jordan last year was directed to support priority programs and
projects in several essential sectors. He told a local media that the areas and
sectors covered by the aid, which amounted to $2.17 billion, involved sectors
that provide social protection, and encompass key sectors that drive employment
and growth under the “government’s ‘economic priorities program’ for the years
2021-2023.”
اضافة اعلان
Aid came from a wide range of sources, like the
US, the
EU, and
Saudi Arabia, according to Shraideh, stressing that the funds
came as a result of His Majesty
King Abdullah’s efforts and cooperation with
Jordan’s allies, recognition of the Kingdom’s reform program, in addition to an
understanding by the international community and donors of Jordan’s urgent
development needs and economic challenges in light of limited resources and a
refugee influx.
On the distribution of aid among sectors, Shraideh
said that the water and sanitation sector accounted for $807 million, or 18
percent of the total aid received in 2021. The education sector received a
total of $266 million, making up 6 percent of 2021’s aid to Jordan.
Additionally, the economic and development sector raked in a total of $128
million, amounting to 2.8 percent of the total aid.
Much of the aid directed towards the economic
sector went to support some small and medium-sized businesses, which were
particularly in need.
Shraideh also indicated that the health,
justice, governance, social protection, transportation, energy, vocational
training, environment and agriculture sectors accounted for 6 percent of the
total aid, with a value of $269.4 million. Investments were channeled to the
refugee support sector, which included the provision of direct, food, and medical
aid, as well as shelter, among other means of support at a value of $517.6
million, or 11 percent of the aggregate aid expenditure.
Shraideh explained that the treasury received
grants to support the general budget until the end of 2021, with a total of JD803
million, in addition to some soft loans directed to support the Kingdom’s
budget, which amounted to JD870.7 million.
According to the planning ministry, among the
projects included in this assistance is the water sector; which targeted the
rehabilitation and upgrading of water networks and pipes in Ajloun, Balqa, Amman,
Jerash, Mafraq, and Irbid governorates; the rehabilitation of the Zay station
water system (the largest source of potable water in the Kingdom) and investing
in the National Water Carrier project.
The minister also pointed out that "part
of this aid was directed to the infrastructure and transport sector to finance
a number of projects like developing public transport infrastructure,
implementing and rehabilitating a number of main roads.”
Economist Mufleh Aqel told
Jordan News that it is quite likely that
a good portion of this aid was received from foreign actors under certain
conditions, like stipulating the sector in which the funds will be spent. “For
example, if Germany gives Jordan a loan to build schools, Jordan must comply
with these conditions and build schools.”
Beyond the 47 percent of aid mentioned by the
planning ministry, Aqel pointed out that those remaining amounts were most
likely directed towards the other portions of the Kingdom’s budget. He also
explained that Jordan usually receives soft loans through cooperation with
international organizations like the European Investment Bank. “Soft loans often involve long-term low
interest rates. If invested properly, these soft loans can create
revenue-generating assets for Jordan,” he said.
Economic expert Wajdi Makhamreh recommended
that the remaining amounts of the 2021 aid be possibly utilized to support
numerous sectors in Jordan like the tourism, agriculture, and energy sectors,
“which could provide promising sources of revenue for the Kingdom.”
Additionally, it is advisable, he said, to utilize some of Jordan’s aid to
extract some raw materials like minerals to boost its exports and to mobilize
the economy.
Makhamreh believes that it is more beneficial
for Jordan to invest more in the private sector and less in the public sector.
“At the moment, the public sector is quite saturated with over employment.
There should be a special focus on investing in the private sector moving
forward, in order to make Jordan’s economy more self-sufficient, and less
reliant on monetary foreign aid.”
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