As I have traveled to Jordan over the past few years, I have witnessed up close the impact of regional instability and the influx of refugees from the Syrian crisis. At the community level, resources and services are stretched thin. At the national level, the impact is being felt on budget priorities. A recent USAID study estimates the fiscal cost for Jordan of hosting Syrian refugees is staggering—equivalent to 2.4 percent of Jordan’s GDP.
In a neighborhood of growing instability, time and time again Jordan has been a steadfast partner in the years. It is vitally important the United States assist Jordan to stand firm and maintain a strong economy in the face of regional uncertainty.
Thats why yesterday, the bond sale for a second United States-backed loan guarantee for Jordan, is especially relevant.
This second loan guarantee — for $1 billion - will help Jordan shoulder some of the enormous burden it is currently managing. It fulfills the commitment made by President Obama during his meeting in California this year with Jordan’s King Abdullah. President Obama noted at that meeting that, “we have very few friends, partners and allies around the world that have been as steadfast and reliable as His Majesty King Abdullah, as well as the people of Jordan.”
The loan guarantee will allow Jordan to access affordable financing from international capital markets—ensuring that it can continue to provide critical services to its citizens, even as it hosts over 600,000 Syrian refugees in this small country of 6 million people.
USAID is supporting the Government and host communities of Jordan as they cope with the Syrian crisis. We have re-oriented existing programs to account for the flow of refugees and added funds to focus directly on stresses caused by the crisis. With 85 percent of Syrian refugees in Jordan living outside of refugee camps in local communities, the United States is helping expand school room and hospital capacity and increase trash collection.
Just last week, as part of Let Girls Learn, we announced a $12 million grant to help Jordanian schools provide education to Syrian refugees, including 180,000 children.
Our partnership did not start with the current crisis. For over 60 years, USAID and Jordan have worked together as partners in development. Together we are creating modern learning environments for Jordan’s young population, providing them with the education and skills to compete in a global market. To spur Jordan’s economic growth, USAID programs are promoting workforce development, job creation, and supporting regulatory and fiscal policy reforms.
Building on the success of last year’s loan guarantee agreement with Jordan, the current loan guarantee will enable the United States to continue to work alongside other donors—including the IMF—to support Jordan’s ongoing economic reforms. It will spur broad-based growth—helping Jordan to develop a more competitive workforce, reduce the strain on public services, and create good jobs.
Finally, Jordan is one of the driest countries on earth and has one of the highest population growth rates in the region. Demand for water far exceeds Jordan’s renewable freshwater sources, particularly with the continuing influx of refugees. Here, too, USAID is helping communities improve water resource management and rebuild aging water and wastewater infrastructure. USAID is also helping Jordanian families obtain low cost cisterns to collect water for households and gardens especially as families and communities expand with new arrivals from Syria.
Rapid population growth has reduced the amount of fresh water available to the average Jordanian to less than 158 cubic meters per year—10 times less than the average U.S. citizen consumes. The renewable water supply, replenished each year by rainfall, only meets about half of total water consumption.
Helping Jordan’s government continue to provide essential services, like access to potable water, is critical as the country manages its own development with an increased burden of hundreds of thousands of refugees in an unstable neighborhood. The loan guarantee is an important demonstration that today and tomorrow we stand by our strong partnership with the people of Jordan.