The World Bank has changed its assistance program in Jordan by adding a new pillar to improve economic opportunities for women as part of efforts to help the kingdom pilot its economic recovery from Covid.
The Washington-based lender has also raised $ 1.1 billion in additional funding for new and ongoing projects to help Jordan weather the pandemic.
This is part of the performance and learning review of the World Bank Group Country Partnership Framework, which guides lender support to a country.
The Performance and Learning Review summarizes Jordan’s framework for fiscal years 2017 to 2022.
It also added a new pillar, a human capital review focused on youth employment, as well as efforts to spur a sustainable “green” recovery.
“The World Bank Group is committed to adapting its program to help Jordanians overcome the multi-layered effects of the Covid-19 crisis, including [its effect] on their health, education and livelihoods, ”said Saroj Jha, World Bank regional director in Mashreq.
Jordan, which relies on foreign aid and subsidies to fund its fiscal and current needs, is trying to overhaul its economy and cut government subsidies as public debt and unemployment rise.
The kingdom is also seeking to stimulate oil production and develop its non-oil economy. However, a large number of Syrian refugees and the Covid-19 epidemic have exacerbated its economic and fiscal problems.
The Jordanian economy has been hit hard by the pandemic, exacerbating its weak growth, high unemployment rate and growing debt load. It contracted 1.6 percent last year while unemployment rose to 24.7 percent in the fourth quarter.
The World Bank also estimates that half of Jordanian youth are unemployed.
Jordan has also made progress on some reforms necessary for economic recovery during the performance and learning review period, the lender said.
Some of the reforms include the launch of licensing reforms, the expansion of the Jordanian social protection system, a revision of the statutes relating to public procurement and the adoption of a new law on public-private partnerships, legislation on public procurement. insolvency and secured transactions, climate regulations and regulations on supervision and inspections.
Launched in 2016 in the context of the Syrian crisis, CPF Jordan aims to encourage private sector-led growth and improve unemployment opportunities.