FOURTH QUARTER 2005/FIRST QUARTER 2006 37134 · WorldBankContacts ....................................................................................................................................................................................... 2 · GenderEntrepreneurshipMarkets ...................................................................................................................................... 3 · RecentEconomicDevelopments ............................................................................................................................................... 7 · WorldBankOpensaPublicInformationCenterinJordan...................................................... 11 · JordanSuccessfullyUtilizesWorldBankGranttoStrengthen CapacityforAddressingWomen'sHealthIssues. .............................................................................................. 12 · BankGroupOperations ................................................................................................................................................................................................ 16 · News,RecentandUpcomingActivities ....................................................................................................................................... 20 · RecentWorldBankPublications ...................................................................................................................................................................... 22 Joseph Saba, Country Director World Bank Internet Address: Tel. (202) 473 2992 www.worldbank.org Fax (202) 477 1482 Email: Jsaba@worldbank.org To view and order World Bank Publications: http://publications.worldbank.org/ecommerce/ Osman Ahmed, Lead Country Officer Tel. (202) 473 7063 For more information on World Bank Fax (202) 477 1482 programs in Jordan: Email: Oahmed@worldbank.org www.worldbank.org/mena Sebnem Akkaya, Senior Country Economist To locate research papers, best practices, Beirut Country Office terms of reference, presentations, key policies, Tel. (961 1) 987 800 communities of practice, project information Fax (961 1) 986 800 and useful links from the World Bank and Email: Sakkaya@worldbank.org other sites: Email: askMNA@worldbank.org Sophie Warlop, Operations Analyst Tel. (202) 473 7255 Fax (202) 477 1482 Email: Swarlop@worldbank.org Loraine James, Program Assistan Tel: (202) 473 5621 Fax: (202) 477 1482 Email: Ljames@worldbank.org World Bank Address: 1818 H Street, NW Washington, DC 20433 Editorial Team: Francisca Ayodeji Akala Sebnem Akkaya Ahmed Attiga Amanda Ellis Sara Gamay Chadi Bou Habib Shaheen Sidi Mohamed Carmen Niethammer Sophie Warlop With special thanks to Mary Saba Fourth Quarter 005/First Quarter 006 GENDER ENTREPRENEURSHIP MARKETS This article is part of the Gender Entrepreneurship Women-Owned Businesses Markets (GEM) Country Brief series intended to In Jordan provide an overview of the status of women's entt trepreneurship in countries of the Middle East and North Africa (MENA) region. The focus of the Intt As research shows, women are more likely to emt ternational Finance Corporation's (IFC) GEM Prot ploy other women, thus increasing the number of gram is to expand women's participation in the prit women Small and Medium Enterprises (SMEs) vate sector by providing support to growthtoriented in Jordan which could have a considerably posit small and medium enterprises and by expanding tive effect on job creation. Women entrepreneurs women's employment opportunities. account for only 3.9 percent of all entrepreneurs in Jordan, while it is estimated that 90 percent of Labor Force Participation all businesses in Jordan are SMEs. Throughout the MENA region, the number of women entret Female labor force participation rates in Jordan preneurs varies from 3 percent in some countries from 1950 to 2000 reveal that female participat to 18 percent in others, indicating that Jordan tion remained slightly above 10 percent until the has one of the lowest percentages of women ent 1960s, increased to 18 percent in 1990 and then trepreneurs in the region. This is also extremely rose sharply to 27.8 percent in 2000. This trend low by world standards (average of 25t33 pert reflects the increase in demand for women's lat cent). While anecdotal information indicates that bor created by the shortage in the Jordanian lat women are active in the informal sector in Jordan bor market as Jordanian men migrated to the (as unpaid rural workers and petty traders), and Gulf States during the 1970s and early 1980s. microfinance surveys indicate that women run 63 Although there has been a significant increase percent of Jordan's informal enterprises, it is unt in the female labor force participation rate, this clear what percentage of the informal sector comt represents a low level of participation compared prises womentowned SMEs. to 32 percent at the MENA regional level (a level which is already the lowest in the world). Nearly According to a 1999 survey by the Office of 54,000 women, or 45 percent of the female lat Women in Development of the United States bor force, are employed in the public sector. The Agency for International Development (USAID), Ministries of Health, Education, Planning, Social approximately 12.4 percent of all currentlytworkt Development and Post and Telecommunications ing women work in microenterprise activities. In employ the largest proportion of women in the terms of business size and levels of formality, it civil service, totaling 45,829, or approximately is estimated that three quarters of women's ent 86 percent of all female civil service employt terprises in Jordan are hometbased, and there are ees. Jordan's Department of Statistics calculatt significant differences between women's homet ed a female unemployment rate of 20.8 percent based enterprises and those that are based outside compared to a male unemployment rate of 13.4 the home. Most women's businesses are based percent in 2003. This indicates that women are on a narrow range of "traditional" skills, such as willing to work, but are potentially having more sewing, embroidery, production of other handit difficulties than men to find employment. Causes crafts, provisions of beauty services and commert of female unemployment in the private sector int cial trade in groceries or clothing.2 clude: poor education or job market skills match; lack of entrepreneurial culture; disincentives for private sector employers to hire women; and sot cial norms about "appropriate" work for women.1 2 USAID, "Women's Economic Activities in Jordan: Ret 1 Ellis, Amanda. "Jordan CGA Private Sector Developt search Findings on Women's Participation in Microentert ment," IFC Sector Note. 2005.. prise, Agriculture and the Formal Sector." July 1999. Fourth Quarter 005/First Quarter 006 Opportunities And Obstacles JD318.6 million, or US$637 million, which repret To Women's Enterprises And sents only 8.6 percent of the gross deposits in the Business Expansion bank. These figures suggest that Jordanian women do not have adequate financial savings to invest in their businesses, making alternate sources of Regardless of business size and level of formalt ity, Jordanian women business owners indicate access to finance all the more important.5 Faced that they face constraints in operating and expandt with difficulties in accessing credit from formal ing their businesses. According to the USAID financial sources, women entrepreneurs turn to survey, the single biggest constraint confronting microcredit as a secondtbest solution. Survey ret all women with businesses was a lack of operatt search indicates that a significantly higher number ing capital. More than 40 percent of women ret of women running informal enterprises in Jordan ported their businesses were undercapitalized. A (91 percent of women surveyed) want to borrow secondary, related problem reported by about 20 from microcredit institutions. This compares to 73 percent of all the women was customer defaults percent of the men surveyed and indicates men's on accounts receivable. A 2005 Jordanian survey greater ease in accessing the formal financial mart on the effects of business incubators on women's ket.6 Furthermore, women entrepreneurs who are businesses revealed that Jordanian women whose limited to microcredit institutions to access finance businesses fail, suffer from lack of effective busit find it difficult to enter sectors that require larger ness training, marketing (in particular pricing and investments as minimum registered capital. using modern methods in marketing, such as camt paigns and the internet), administrative techniques Access to Markets. As most women's businesses in and access to networks.3 Jordan are based on a narrow range of "traditiont al" skills or are home based, most womentowned Access to Finance. Access to credit is a key obt SMEs in Jordan serve local markets. Impediments stacle to business starttup expansion, and may to accessing larger, more lucrative markets include explain why the majority of women enterprises lack of export knowthow, highly bureaucratic busit in Jordan are microenterprises. Although bankers ness registration processes and complicated export argue that their credit policies are gender neutral, market procedures. Jordanian business women claim that their male counterparts receive more favourable treatment. Access to Networks. According to a survey prot The absence of a private credit bureau and the low vided by the Jordan Forum for Business and Prot coverage in the public credit registry (19 borrowt fessional Women, of the 3,006 women registered ers per 1,000) is problematic for loan approvals, in the Jordanian Chamber of Commerce, 9 percent meaning that the cultural or social disposition of are entrepreneurs, 20 percent do not manage their the loan officers may have a great influence on det business affairs, and 71 percent are housewives or cisions. For example, women point to the fact that are not even aware that they are registered in the banks require lower collateral for the same loan Chamber of Commerce. Twentytfive percent of the amount for males and no requirement for a spousal women registered in the Chamber of Industry are guarantee, whereas, oftentimes a woman needs her general managers, 3 percent are heads of administt husband's guarantee. Women business owners also trative departments and 3 percent are members of claim that men receive a more favourable response administrative departments.7 While the costly and to new business ideas.4 The Central Bank of Jordan bureaucratic nature of formal business sector regt estimates that 704,583 women have bank accounts istration is a barrier to all wouldtbe business ownt in Jordan, with deposits totalling approximately US$2,194 million. The Arab Bank calculates that 5These figures were provided by the Central Bank of women's deposits in the Arab Bank have reached Jordan and theArab Bank in Jordan. The figures provt vided by the Central Bank of Jordan do not include the Arab Bank's figures. 3 Masoud, Reema. "The Effect of Business Incubators 6World Bank. "The Economic Advancement of Women at the Business and Professional Women Association on in Jordan: A Country Gender Assessment." May 2005. Women's Projects." 2005. 7"Status and Ambitions." (Survey provided by the Jort 4 World Bank. "The Economic Advancement of Women danian Forum for Business and Professional Women), in Jordan: A Country Gender Assessment." May 2005. November 2001. Fourth Quarter 005/First Quarter 006 ers, this affects women disproportionately since Businesswomen's Associations women, on average, have fewer resources and less access to business networks than men. The lengthy The Jordanian Forum for Business and Profest and complex registration and licensing procedures sional Women (JFBPW) provides technical support discourage women from going through the process, to women in SMEs and microtbusinesses through: and reportedly, most women send male relatives or specialized professional training; information shart employees to act on their behalf with the relevant ing; networking; access to foreign markets; efforts government bodies.8 of the JFBPW to represent women SMEs in ret gional and global economic platforms and through Country Policy And The raising the voice of Jordanian women in SMEs, mit Promotion Of Women-Owned crotbusinesses and professionals occupations. The Businesses JFBPW is one of the leading womentintbusiness forums and provides legal counseling, mentoring, a business incubation program to encourage starttups Jordan's National Strategy for the promotion of and training for rural women in nonttraditional oct women has thus far focused on empowering womt cupations that allow them to run their own microt en to join the labor force, but has not specifically enterprises. The JFBPW has acknowledged the imt focused on promoting womentowned businesses. portance of creating a supporting legal environment However, womentowned SMEs have an important that encourages women's participation in economit role to play in the government's strategy for prit cal activities. Therefore, one of JFBPW's major art vate sector development--outlined in the National eas of interventions is to contribute to the process Social and Economic Action Plan for 2004t2006-- of changing the national regulations of relevance to which expresses the Government's commitment to womentintbusiness into more positive and encourt introduce programs that "aim to empower and ent aging laws and regulations. To do this, JFBPW is able citizens, especially youth and women, as well functioning as a link between the Jordanian decit as to encourage more private investment in order siontmakers and women­intbusiness. to create 50,000 additional job opportunities every year." In line with this aim, Jordan is facilitating Other organizations also focus on empowering women's access to employment through two areas women as entrepreneurs. For example, the Amerit of increasing importance for private sector develt can Chamber of Commerce in Jordan (JABA) has opment in Jordan: the Information and Commut a woman CEO and a number of women involved in nication Technology (ICT) sector; and Qualified its management committees. JABA runs business Industrial Zones (QIZs). New opportunities for starttup courses throughout Jordan whose clients women to upgrade their skills and access paid work are predominantly women.9 The Jordan River Fount are available through the establishment of some dation, a nontprofit Jordanian NGO established in 100 ICT knowledge stations across Jordan. Some 1995 and chaired by Her Majesty Queen Rania Alt 25,650 Jordanian women have been trained totdate, Abdullah, also has also built the capacity of many which represents 57 percent of the total number of women entrepreneurs at both the micro and small trained workers. According to the Ministry of Int enterprise levels, including business management dustry and Trade, women account for 70 percent of training initiatives for women QIZ employees and have benefited from Jordan's significantly increased exports to the United States. Jordan has also initiated a program to bring rural women to work in QIZs, with the objective to ent sure that more Jordanians benefit from new job opt portunities and technology and skills transfer. 9 USAID, "Women's Economic Activities in Jordan: Research Findings on Women's Participation in Micro enterprise, Agriculture, and the Formal Sector." 8 Ibid July 1999. Fourth Quarter 005/First Quarter 006 5 Donor Activities For Assistance While the GEM Program is not envisioning to set To Women Entrepreneurs up a program in Jordan at this point, it is planned that several regional GEM initiatives (such as ret Most donor activities for assistance to women search studies and training) will include Jordan entrepreneurs have focused on sustainable microt directly. credit programs as an effective catalyst for ecot nomic growth by increasing income and creating The regional GEM Program has the following main employment at the grassroots level. The most objectives: active donors in this field are USAID, the World Bank and the European Union. In June 2005, · Demonstrate the potential contributions female the JordantUnited States Business Partnership entrepreneurship offers to MENA's economic Program--a US$27 million, seventyear USAIDt growth. funded SME development project--announced the creation of a Jordanian successor organization · Improve female access to private sector jobs, called the Business Development Center which is business opportunities, business resources and charged with assisting ment and womentowned skills. SMEs to enhance their competitiveness, as well as · Help increase outreach and impact of Women continuing successful initiatives to promote womt Business Associations in the public and private en entrepreneurs, such as the Internship Program sectors. "Maharat" and "Increasing the Competitiveness of WomentOwned Businesses." These general objectives are based on findings from regional studies of issues affecting women IFC PEP-MENA Gender SME owners in the Middle East and North Africa and on the PEPtMENA GEMtcommissioned countt Entrepreneurship Markets (GEM) try studies. Program GEM aims to bring a gender dimension to IFC's investment projects, address gender barriers in the Further information please visit: business environment, provide advisory services http://www.ifc.org/menagem to financial intermediaries and deliver training for women entrepreneurs. Along with subtSaharan Aft rica, the Middle East is one of the program's priort ity regions. The IFC's Private Enterprise Partnership for the Middle East and North Africa (PEPtMENA) has launched a twotyear regional technical assistance and advisory program for women entrepreneurs called Gender Entrepreneurship Markets. The prot gram's goal is to maximize women's contributions to private sector development. The PEPtMENA GEM Program aims to improve women's access to PEPtMENA's four areas of activity: SME and fit nancial market development, business environment improvements, privatization advisory services and publictprivate partnerships. The Program targets growthtoriented womentowned SMEs with solutt tions that facilitate and promote fast track growth. 10 "Partners for Progress." USAID in Jordan. June 2005. 6 Fourth Quarter 005/First Quarter 006 REcENT EcoNoMIc DEvEloPMENTS Overview Figure 1. GDP and Manufactures Jordan's economic growth remained high in the first nine months of 2005. Real GDP growth is estimated to have reached up to 7.5 percent over the first nine months of the year. The economy also showed signs of vulnerability, with the Trade Defit cit soaring by 48 percent, public expenditures rising by 16 percent and a 23 percent increase in credit to the private sector. On the fiscal side, the effect of oil subsidy reduction produced a significant drop in subsidies for September 2005 The full effect on expenditures containment would show in the comt ing few months. Meanwhile, the budget balance reached a negative 23 percent of expenditures in September 2005. Real Sector Evolution Source: Jordanian Authorities and World Bank Staff Estimates Economic growth sustained the high levels obs External Sector served in 2004, despite the end of the rebound effect that followed the war in Iraq. Figures over nine months demonstrate a 7.5 percent real Jordan registered a large cumulative Trade growth rate. The leading sectors remain services Deficit in September 2005 (JD3.2 billion and which benefited from higher external financial 47 percent of GDP), which grew by 48 percent flows. The finance and insurance services grew during the first nine months of 2005 compared by 15.7 percent, against 5.7 percent a year earlit to the same period in 2004. The increase in defit er. The wholesale and retail trade sector growth cit is the result of a 31 percent increase in imports, reached 10.2 percent against 5.2 percent a year partially offset by an 11.8 percent increase in total earlier. Manufacturing, construction and transp exports. Domestic exports increased by 12 pert portation performed well, but at lower levels cent, while retexports rose by 10 percent. Over 35 than in 2004. The growth in the manufacturing percent of the increase in imports is linked to the sector remained high at 12 percent compared to a increase in both oil prices (36.5 percent) and volt 17.3 percent growth in 2004. The manufacturing ume (15.6 percent). sector continued to benefit from the recovery in exports to Iraq, and from the rise in demand for The clothing industries located in the Qualified Jordan's products from the oil exporting count Industrial Zones (QIZs) remain the main exports tries. However, exports to Iraq are increasing ers of manufactured goods. However, clothing is at a slower pace than in 2004. The activity with no longer among leading export sectors which now Iraq continued to stimulate growth in the transp comprise food and beverage, chemical industries port and communications sector, which grew by and manufacturing industries (other than clothes). 8 percent after growing by 12.6 percent in 2004. Clothes exports increased by 9 percent against 52 The construction sector continued to benefit from percent a year earlier and account for 30 percent of transfers linked to oil prices and Iraqi immigrat total exports in the First Half of 2005, same as for tion, growing by 9.6 percent in 2005, compared the same period of 2004. Exports of food and bevt to 13.6 percent in 2004. erage increased by 43 percent between the Third Quarter of 2004 and the Third Quarter of 2005. Fourth Quarter 005/First Quarter 006 They now represent 12 percent of total exports are, however, linked to volume increase. A large compared to 9 percent last year. Exports of chemit part of these imports are retexported to Iraq. The cals and manufactured goods other than clothes increase in the imports of manufactured goods, int rose by 18 percent, and account for 35 percent of cluding intermediary goods, represents 14 percent total exports, against 33 percent in 2004. of the total increase in imports. Exports to the European Union increased by 28 The foreign currency reserves of the Central percent, as Jordan continues to benefit from the apt Bank increased by US$347 million to US$5.62 preciation of the Euro against the US dollar, a curt billion between December 2004 and September rency to which the Jordanian Dinar is pegged. The 2005. The increase in reserves, despite the rising propensity to import from Arab countries also int Trade and Current Account Deficits, reflects subt creased due to the rise in oil prices, with exports to stantial rise in capital inflows from the region. this destination rising by 16 percent. Exports to the United States increased by 12 percent in Septemt ber 2005 against 60 percent a year earlier, and the Fiscal Situation share of clothes in total exports to the United States remained high at 86 percent, against 88 percent in Government revenues increased dramatically 2004. The deceleration of the exports to the United thus far in 2005. Revenues increased by 23 pert States reflects the slowdown in clothes exports. cent compared to the actual figures of the first nine months of 2005. The strong economic dynamic is largely responsible for this satisfactory perfort Figure 2. Trade Deficit over Nine Months mance of revenue collection. The rise in revenues As percent of GDP is due for 19 percent to the increase in the tax on income and profits collections, and for 42 percent to the rise in sales tax receipts. The increase in oil prices exerted important pressures on public expenditures. Expenditures increased by 16 percent in the first nine months of the year. This evolution is the combination of a 19 percent increase between the Second Quarter of 2004 and the Second Quarter of 2005, and of a 12.5 percent increase between the Third Quarter of 2004 and the Third Quarter of 2005. The Governt ment has taken two sets of measures in the Third Quarter in order to compensate for the rise in oil subsidies. First, in response to the sharp increase in subsidies in July and August, the Government contained and restricted other types of expendit Source: Jordanian Authorities and World Bank Staff Estimates. tures. Second, the cut on oil subsidies became eft Note: First nine months of the year. fective in September 2005. All in all, oil subsidies rose by 139 percent during the first nine months, or 69 percent of the total increase in expenditures. The breakdown of the increase of imports shows The defense and security expenditures represent that the rise in oil imports contributed to 35 pers 12 percent of the total increase. cent of the total increase in imports and to 44 percent of the increase in Trade Deficit. Also, the The rise in expenditures brought the total and increase in imports reflects higher imports of inputs primary deficits in absolute terms to levels close and equipments. This is due to the dependence of to those of 2004. However, the cumulative budget the economy on intermediary goods and to the ret balance to expenditures ratio stood at a negative 23 covery of retexport activity with Iraq. For example, percent in September 2005, representing a relative the rise in the imports of machinery and transport improvement over a negative 27 percent in Septemt equipment accounts for 32 percent of the total int ber 2004. The primary balance registered a slightly crease in imports. While 23 percentage points (ppt) smaller deficit of JD460 million against a deficit of of this increase are due to price increase, nine ppt JD495 million a year ago. Fourth Quarter 005/First Quarter 006 Table 1. Fiscal Balance this evolution is the combination of a 2.1 percent Jordanian Dinar Millions increase in the Second Quarter of 2005 compared 2004 2005 to the Second Quarter of 2004, and a 4.2 percent Domestic Revenues 1592 1956 increase in the Third Quarter of 2005 compared to Tax.Revenues 1069 1351 the same period of the past year. The acceleration Income and Profits 179 248 of the CPI during the Third Quarter of 2005 is due to the increase in the Fuels and Electricity item by Sales.Tax 608 760 13.1 percent and in the Transportation and Comt Customs 197 223 munication item by 7 percent. The increase in oil Other 85 120 prices had no significant impact on the CPI during Non.Tax.Revenues 472 574 the First Half of 2005, as it was mainly absorbed Repayment 51 31 by the rise in oil subsidies. Starting in September Total Expenditures 2191 2546 2005, the reduction in oil subsidies generated an int Current Expenditures 1643 2073 crease in the prices of oil derivatives and the CPI of Excl. Debt Service 1539 1943 oil related items rose substantially. This tendency is o/w Defense and Security 474 517 expected to continue in the coming months. o/w Oil Subsides 177 423 The GDP deflator rose by 4 percent over nine Debt Service 104 130 months, due to the price dynamic of several sectors. External 64 76 The deflator of the Mining and Quarrying sector int Internal 39 54 creased by 16.5 percent, the Restaurant and Hotel Capital Expenditures 548 473 deflator by 4.8 percent, the Manufacturing deflator Surplus/Deficit ­599 ­590 by 4.5 percent and the Finance and Insurance sert Balance to Expenditures ­27% -23% vices deflator by 4.4 percent. Higher demand for Primary Balance ­495 ­460 goods and services, partially reflecting Iraqi immit Balance Including Grants gration, the inflows of oil money and the rise in oil prices have all contributed to inflate prices in Jort Surplus/Deficit 71 -166 dan, both in tradable and nonttradable sectors. Balance to Expenditures 3% -7% Primary Balance 174 -36 The broad money supply (M2), increased by Source: Jordanian Authorities and World Bank Staff Estimates. 4.5 percent since June 2005 and by 13.8 percent since December 2004, compared to respectively The debt stock decreased by JD71 million bes 5.4 percent and 9.8 percent a year earlier. Time tween December 2004 and September 2005. The deposits in Jordanian Dinars increased by 12.1 pert decrease reflects the combined impact of higher cent over the first nine months, while time depost revenues, debt service rescheduling and inflow its in foreign currencies increased by 6.2 percent. of foreign grants. Between March and September Demand deposits in Jordanian Dinars remained the 2005, the structure of the public debt changed tot most dynamic aggregates of the money supply with ward a substitution of the external debt by debt held a 28.8 percent increase, while demand deposits in domestically. The later increased to 31 percent of foreign currencies rose by 9.8 percent. the total debt in September against 25 percent in March 2005 and 27 percent in December 2004. Deposits at commercial banks increased in line with the inflow of capital triggered by the soars ing cost of oil prices. Resident deposits increased Prices, Money and Banking by 5 percent since June 2005 and by 13.8 percent since yeartend 2004. The dollarization of resident The Consumer Price Index (CPI) inflation accels deposits decreased to 24 percent in June 2005, erated in the Third Quarter of 2005. Figures over compared to 25 percent at end 2004, and remained nine months suggest a slowdown in the CPI dynamt stable since. The gradual stabilization of the dolt ic, with the index increasing by only 2.8 percent on larization reflects the rise in the real interest rates average between the Third Quarter of 2004 and the on Jordanian Dinars' time deposits by 154 basis Third Quarter of 2005, against 3.5 percent a year points (bpt) between December 2004 and Septt earlier. However, a closer observation shows that tember 2005. Also, while remaining negative, the Fourth Quarter 005/First Quarter 006 spread between the nominal interest rate on Jordat the first nine months. The breakdown of lending by nian Dinartdenominated time deposits and the three sector shows that lending to the agriculture, industt months Libor narrowed to a 51 bpt after reaching a try, construction and trade sectors increased by 8.7 low 76 bpt in June 2005. percent. Lending to the tourism sector decreased by 6 percent, reflecting the difficulties of this sector Figure 3. Deposits and Claims due to building regional tension. Consumers and JD Million Stock Market investors remained the most dynamic borrowers, with a 44 percent increase in the lendt ing to these two categories since the end of the year 2004. Claims on public sector jumped by 18.8 pert cent and deposits with the Central Bank increased by 9.8 percent. The restrictive monetary policy followed by the Authorities continued to impact interest rates in the Third Quarter of 2005. The discount rate of the Central Bank is now 175 bpt higher than that of yeartend 2004. The Authorities also raised the nominal interest rates on the 3 months Certificate of Deposits (CDs) by 225 bpt and on the 6 months CDs by 295 bpt, and managed to absorb part of the mart ket liquidity. Consequently, the retfinancing cost for the banks rose by 223 bpt in real terms, while the real interest rate on 3 months CDs increased by Source: Jordanian Authorities and World Bank Staff Estimates 300 bpt and on 6 months CDs by 339 bpt. However, the upward pressure on the banks' real retfinancing Lending to the private sector continued to ins interest rates failed to materialize into sustained int crease, in line with the strong GDP growth. crease in lending interest rates to the private. Private Claims on private sector (resident) increased by 23.1 lending has, indeed, remained on a strong upward percent over the first nine months, and their share path reflecting strong positive expectations with ret in the commercial banks' assets rose to 35 percent gard to the regional economic context. Also, large from 33 percent in December 2004. In value, this inflow of resources for lending prevented interest corresponds to an increase by JD1.4 billion over rates from increasing substantially. 10 Fourth Quarter 005/First Quarter 006 WoRlD BANK oPENS A PUBlIc INFoRMATIoN cENTER IN JoRDAN The World Bank inaugurated PICs also aim at enabling people to make informed on February 13, 2006 its first decisions and encourage them to participate in their Public Information Center country'sdevelopmentprocessandpromotedialogue (PIC) in Jordan, in partnert about issues of concern to their society, through ship with the Greater Amt speakers programs, seminars, conferences, etc. man Municipality. Housed in the Public Library of the Municipality in old town In that context, PICs provide visitors with access Amman, the PIC will provide visitors with free and to World Bank project documents, reports and det open access to a wealth of information about the velopment related publications, a special collectt World Bank's activities and projects in Jordan, the tion of CDs and videotapes on development, and a region, and the world. large number of ontline databases on development, which outside the premises of the PIC, can only be The objective of the PIC is to ensure the effective accessed through a feetbased subscription for indit dissemination of World Bank and other developt viduals or institutions. menttrelated information to enhance public undert standing of the Bank's role in member countries and There are currently about 80 main PICs and 60 satt to encourage dialogue with the public. PICs support ellite PICs in more than 80 countries and in almost the World Bank>s policy of disclosure, which aims every country where the Bank operates. In the Midt to introduce its activities and explain its work to the dle East and North Africa region, the World Bank widest possible audience. In an effort to reach out has established PICs in Algeria, Egypt, Lebanon, to civil society groups attlarge, PICs are increast Morocco, Tunis, West Bank and Gaza. ingly established outside the Country Office locatt tion and in partnership with public institutions to facilitate access and increase exposure. They cont stitute a major tool for reaching out to academia, ret Further information please visit: search institutes, nontgovernmental organizations, http://www.worldbank.org/jo private sector organizations, unions and syndicates, students, and the media. Fourth Quarter 005/First Quarter 006 11 JoRDAN SUccESSFUllY UTIlIZES WoRlD BANK GRANT To STRENGTHEN cAPAcITY FoR ADDRESSING WoMEN HEAlTH ISSUES In June 2002, the World Bank awarded an Int and address women's issues and to create a cont stitutional Development Fund (IDF)11 Grant sensus among key stakeholders on strategies to of US$140,000 to the Government of Jordan promote women's issues. aimed at addressing women's health issues in the underserved southern part of the country. Grant Components And In addition to the grant amount, the Governt ment provided counterpart cashtfunds of about Achievements US$51,000. This threetyear Grant, which closed in June 2005, was successfully implemented by The Grant financed activities under five different the Directorate of Women's Affairs (DWA) led components which were successfully implemented. by Her Royal Highness Princess Aisha Bint Alt The component activities and the achievements are Hussein and reached its expected outcomes. The described below. Grant helped fill a knowledge gap on women's health issues, and built the institutional capacity Needs Assessment Survey: This component fit of key stakeholders. nanced a survey of women in four southern govt ernorates of Jordan: Ma'an, Karak, Tafileh and Background Aqaba. The Survey was expected to improve knowledge about the targeted population's health needs and improve the capacity of policy makers Since 1997, the DWA, located within the Jordan and service providers to design and implement Armed Forces (JAF), has taken the lead on womt programs to meet these needs. The Survey's en's health issues by working to improve the level findings were expected to assist in the identificat of health standards, health awareness and educat tion of a package of services to be offered to the tion among women in the armed forces and female targeted population. dependents of armed personnel. The Royal Medit cal Services of the JAF provides health services The Needs Assessment Survey was designed to to over a third of the population, therefore, the investigate a series of relevant areas including: ret DWA's target population is quite significant. For productive health and use of maternity health sert many of the targeted population, particularly in the vices; morbidity patterns; access and use of health southern governorates of Jordan (mainly lowtint care centers; diet and nutrition; mental health and come families), the only access to health services social background of respondents; and quality of is through the Royal Medical Services. The DWA life. The Survey was implemented in two phases, had a longtterm vision of providing relevant sert the first phase as a pilot in Ma'an governorate, and vices to women in underserved areas through the the second phase in the other three governorates. establishment of a Women's Health Center. The Women aged 9 to 65 years were interviewed. The IDF Grant was a means by which the Bank could sampling was based on the 1994 Census which support the achievement of this vision. The object was used as a framework for selecting the blocks tive of the Grant was to assist in strengthening the to ensure representation of both rural and urban capacity of the Government of Jordan to analyze areas in each governorate. The Table below gives a summary of the number of Blocks selected and 11 The Institutional Development Fund is a World Bank response rate by governorates. grant instrument designed to finance quick, actionvorivt ented, upstream capacitytbuilding activities that are Twentyttwo female interviewers from the Princess closely linked to the Bank's policy dialogue and country Muna Institute of Nursing of Muta University were assistance strategy. Tovdate, Jordan has benefited from recruited and received a threetday training on cont US$2.75 million in IDF Grants for a total of 14 grants. ducting interviews and research. Their work was 1 Fourth Quarter 005/First Quarter 006 Governorates Tafileh Karak Aqaba Ma'an Number of blocks selected 20 24 24 25 Number of eligible households (HH) 240 288 288 375 Number of HH successfully visited 232 280 264 357 HH either closed after two visits or 8 8 24 18 refused to be interviewed HH response rate 97% 97% 92% 93% supervised by two national consultants, researchers ponent and identify key monitoring and evaluation from the Ministry of Health and an expert from the indicators. The implementation of this component Department of Statistics. In addition to funding from improved the capacity to identify, develop plans the Grant and the Government's contributions, the and determine the requirements of a project. The Survey was also supported by the World Health Ort work plan and implementation schedule were pret ganization (WHO). As a followtup to the Survey, a pared, including future steps to continue to address series of dissemination workshops were conducted women's issues. The plan and program of action to share findings and lessons with key stakeholdt will be used as tools not only for implementation, ers and service providers in the four governorates. but also for monitoring progress on achievements. The Survey results have been used by the three main health service providers in the country (Ministry of National Workshop: This Workshop was planned to Health, RMS and university teaching hospitals) to present the proposed work program and proposals improve service provision targeted at women. to stakeholders, and identify potential donors for the implementation of the package of services and the Training of Key Project Staff: This component fit establishment of the Women's Health Center. The nanced training to, on the one hand, sensitize staff Workshop was held on March 2, 2005 in Amman to gender and health issues, and, on the other hand, under the patronage of Her Royal Highness Princess improve the capacity to design and implement surt Aisha Bint AltHussein, and was well attended by veys. Key project staff at the DWA and the Ministt various stakeholders within the Government, the dot try of Planning also attended a project management nor community, NGOs and women's groups. At the course at the International Labour Organization's Workshop, the DWA was able to get the commitment training center in Turin, Italy. The application of of various participants to support the establishment the lessons from this course had an immediate and of the women's center and solicit donor support for positive impact on the implementation of the grant. ongoing activities on women's issues in the country. Planning and Designing a Women's Health Cenp Survey Findings ter: The expected output was a detailed plan for the proposed health center. This process was expected The overall findings of the Survey (see matrix at the to improve the capacity to put together a proposal end of this article) reflect positive as well as negat to be funded by donors. While the proposal itself tive trends among those women. On the one hand, was prepared by a consultant, the process was done the majority of those women feel a sense of social, collaboratively with the Steering Committee set up economic and psychological security, consider their specifically for the Grant. The proposal has been general health as good and look optimistically to used to identify the needed resources from various the future, feeling that God is always with them. donors for establishing the center. Furthermore, the majority feel that they are socially included and not alienated. Regarding occupational Elaboration of a Detailed Work Program: This health, the majority of the working women like their work program was planned to: define strategies to work and feel a sense of occupational security. implement the package of health services for the tart get population with specific linkages to the overall Concerning their attitudes towards youth issues, the national health care system, and the establishment findings show that almost all of the women believe of the women's center; define the detailed budget that boys and girls have the right to participate in implications for the implementation of each comt the decisions concerning the family and believe Fourth Quarter 005/First Quarter 006 1 that mothers should talk to their children about put Implementation Arrangements berty changes. Those women believe the ideal age for marriage to be on average 22.2 years for girls The DWA, as the Grant implementing agency, estt and 27 years for boys. tablished an IDF Steering Committee whose memt bers included key staff of the DWA, Ministry of Regarding their attitudes toward violence and dist Health, RMS and the university teaching hospitals. crimination against women, the majority of the This Committee was instrumental in the achievet women indicated that during the last year, they were ment of the Grant objectives and succeeded in ent neither beaten by, nor exposed to physical or verbal suring collaboration under the Grant of the three violence from, any member of their families. key health service providers in the country. Comt mendations must be given to HRH Princess Aisha The findings related to the attitudes towards personal Bint AltHussein for the excellent oversight and habits and healthy lifestyle, generally speaking, were supportive role she played, not only in securing the positive among those women, reflecting a healthy Grant, but more importantly, in ensuring the suct social and personal life. Also, the majority of those cessful utilization of the Grant for the intended purt women also feel satisfied and content in their internal poses. She sees the longtterm goal of the DWA in selves and are conscious about their health habits. providing relevant services to women as a crucial input towards achieving the King's vision of ensurt On the other hand, some negative attitudes were ing a better quality of life for Jordanian families. found among those women regarding some of the researched issues. The majority of women do not value their financial circumstances positively, Progress Made Since considering their family's income a source of anxt Grant Closure iety and stress. They also feel a degree of gender gap and discrimination between men and women The DWA has identified several partners for the in the work place. In addition, a significant numt establishment of the women's health center. The ber of working women believe that they are under Tafileh Governorate has been identified as the site stress at work and are exposed to psychological for the center and the land for the building has been pressures that harmed their health and affected donated by the JAF. The Municipality of Amman their welltbeing. will finance the design and construction of the centt ter and other donations of goods and supplies have It was also clear that the vast majority of those been received from private institutions. A Memot women do not follow regular programs of physit randum of Understanding between the RMS and cal activities and are not members of civil society the Ministry of Health to manage and support (fit organizations. Only about half of those women int nancially and otherwise) the center has been draftt dicated that they eat breakfast daily. ed and is scheduled for signing during the foundatt tiontlaying ceremony of the center. The DWA has The overall findings do not show significant differenct also submitted proposals to international donors, es among the three governorates regarding the attitudes like the World Health Organization and the United of the surveyed women towards the studied issues. In Nations Fund for Population Activities, to support fact, some of the findings in the three governorates specific programs and inputs. were almost identical, while other findings are very close to each other. This may be because the women The Way Forward in the governorates of Karak, Taffileh and Aqaba have the same socioteconomic and cultural backgrounds, While this Grant has been successful in its capacity in addition to the relatively small size of the sample in building efforts, the achievements of the Grant could each governorate. The findings obtained from the govt easily be lost without efforts to sustain them. This ernorates of Karak, Taffileh, and Aqaba do not seem Grant was successful in involving key stakeholders, to be significantly different from those obtained from and it is equally imperative that women's health ist the study of the governorate Ma'an when the study was sues in Jordan continue to be addressed in a multit conducted a year earlier as a pilot study for the project. sectoral manner. Without the appropriate platform for this ongoing collaboration, there is a distinct post sibility that various stakeholders will go back to the 1 Fourth Quarter 005/First Quarter 006 old way of doing business to the detriment of Jordat ment agenda of the country to have a sustaining eft nian women. The DWA has made significant progt fect. The National Strategy for Women is just one of ress in ensuring the establishment of the women's many appropriate policy levers to ensure that womt center, but addressing women's health issues need en's health issues remain on the agenda. to be fully integrated in the broader human developt Priorities of Health and Social Problems among Different Age Groups (9s65 Years) In the Southern Governorates of Jordan (Local Community Representative View) Kerak Tafileh Agaba Ma'an Health Problems Health Problems Health Problems Health Problems years 9-14 years 9-14 years 9-14 Different Age Groups 1. Eye Problems 1. Dental Health 1. Hearing Problems 1..UTIs a) Eye Diseases 2. Dental Problems 2. Anemia b) Errors of Refraction 3..UTIs 3. Hypertension 2. Dental Health 4. Eye Problems. 4. Obesity 3. Urinary Tract Infections a) Diseases. 5. Life Style (Lack of Exerc- (UTIs) b) Errors of Refraction cise) 5. Skin Diseases Years 15-49 Years 15-49 Years 15-49 1. Eye problems . 1. Family Planning 1. Anemia a) Eye Diseases. 2. Nutritional 2. Vaginal Discharge b) Errors of Refraction 3. Dental 3. Joint Problems (Vision) 4. Hypertension 4..UTIs 2. Obesity 5. Lack of Periodic and 5. Respiratory Tract Infecc- 3. Cardiovascular Diseases Medical Checkcup. tions 4..UTIs a).Pap-Smear. 6. Hypertension b) Mammography 6. Vaginal Discharge 7..UTIs Years 50-65 50t65 Years 50-65 Years Years 50-65 1. Joint Problems 1. Obesity 1. Joint Problems 2..UTIs 2. Urinary Incontinence 2. Urinary Incontinence 3. Hypertension 3..UTIs 3..UTIs 4. Urinary Incontinence 4. Joint Problems 4. D.M. 5. Anemia 5. Hypertension 5. Hypertension 6. Diabetes Mellitus 6..R.T.Is 7. Colon Disease Social Problems among Social Problems among Social Problems among Social Problems among the Different Age Groups the Different Age Groups the Different Age Groups the Different Age Groups 1. Lack of appropric- 1. Early marriage of females 1. The absence of a role for 1. Lack of appropric- ate knowledge about 2. The poor role of the family women in the community ate knowledge about women's rights in raising and followcup of 2. Inability of females to women's rights 2. Negative attitudes toward their children express themselves (selfc 2. Absenteeism of females females 3. Psychological problems esteem, feelings, etc.) 3. Big family size Quality of Care Quality of Care Quality of Care Quality of Care 1. Deficient information 1. Inappropriate informac- 1. Low quality of health care about the menstrual pec- tion about the menstrual services riod and postmenopausal period and post menoc- 2. Low Quality of health syndrome pausal.syndrome. information offered to 2. Low use of modern conc- 2. Lack of health education females by health care traceptive methods programs facilities 3. The absence of trust in 3. The long distance from health information offered health care facilities by healthcare facilities 4. The absence of transc- 4. The absence of trust in portation to reach health the quality of care offered care facilities by MOH 5. The long waiting time in 5. The long distance from health care facilities health care services 6. The low quality of health services 7. The bad doctorcpatient relationships Fourth Quarter 005/First Quarter 006 15 BANK GRoUP oPERATIoNS The Bank is preparing a Country Assistance Stratt ¡ Amman Water and Sanitation Management egy (CAS) for Jordan, which is the Bank's roadmap Project (AWSMP). (US$55 million.) The Project for assistance covering Bank fiscal years 2006t aims at: (i) improving the efficiency, management, 2009. The CAS will be discussed at the Bank's operation and delivery of water and wastewater sert Board of Executive Directors in 2006. The CAS vices for the Amman Service Area; and (ii) laying takes as its starting point Jordan's National Agent the groundwork for the sustainable involvement da. In accordance with Jordan's development plan, of the private sector in the overall management of the main objectives of the CAS will be poverty ret these services. duction and job creation. The CAS will include a mix of instruments ranging from lending, grants, ¡ Higher Education Development Project analytical and advisory services and learning and (HEDP). (US$34.7 million.) The objective of the capacity building activities. Project is to initiate improvements in the quality, relevance, and efficiency of Jordan's higher edut IBRD Projects In The Pipeline cation, and to support Jordan's program to reform sector governance. ¡ Regional and Municipal Development Projee ect (US$35 million). The objectives of the Project ¡ Horticultural Exports Promotion Learning are to: (i) strengthen the intergovernmental finance and Innovation Loan (US$5 million). The Loan system; (ii) upgrade financial management, technit will initiate the process of establishing Jordan as a cal and administrative capacities at the local level; reliable supplier of nonttraditional, hightvalue ext and (iii) increase the coverage and quality of mut port crops to niche markets in the European Union nicipal service provision, with particular emphasis and Gulf countries. on undertserved areas. ¡ Education Reform for the Knowledge Econoe my (US$120 million). The Project supports systemt IBRD Ongoing Projects ic educational reform in Jordan that extends from Early Childhood Education through Secondary The current portfolio in Jordan consists of six projt Education. The Project will contribute to the develt ects for a total commitment amount of US$268 milt opment of human capital with the skills and compett lion, of which US$116 million has been disbursed tencies required by the Knowledge Economy. totdate. Undisbur- Loan sed Approval Amount Amount Closing Active Portfolio Date US$ M US$ M Primary Sector . Date Amman Water and Sanitation Management Mar-99 55.0 2.2 Water Supply/Sanitation Jan-07 Higher Education Development Febc00 34.7 11.7 Education Jun-07 Horticultural Exports Promotion Agriculture Markets and Learning and Innovation Jun-02 5.0 3.1 Trade Decc06 Education Reform for Knowledge Economy May-03 120.0 85.6 Education Decc08 Amman Development Corridor Jun-04 38.0 35.9 Transport Jun-09 Public Sector Capacity Building Mar-05 15.0 14.4 Public Sector Mar-09 Total 267.7 152.9 . 16 Fourth Quarter 005/First Quarter 006 ¡ Amman Development Corridor (US$30 milt future development of a commercial size wind ent lion). The Project aims at: (i) assisting Jordan's ergy project with private sector involvement. growth strategy by providing needed infrastructure to support Amman's role as a regional center for ¡ Conservation of Medicinal/Herbal Plants trade and services; and (ii) helping ensure that Jort Project (US$5 million Global Environment Facilt dan's road assets are managed in a costteffective ity). The Project supports the conservation, mant and sustainable manner. agement and sustainable utilization of medicinal and herbal plants in Jordan through ensuring eft ¡ Public Sector Capacity Building Project fective intsitu protection of threatened habitats and (US$15 million). The objective of the Project is to ecosystems and extsitu sustainable use. The main support the ongoing implementation of the Govt components are: (i) institutional strengthening; (ii) ernment's public sector reform strategy by ensurt pilot sites conservation; (iii) public awareness and ing that the required institutional infrastructure is education; and (iv) income generation activities. in place and functioning. It also seeks to support an important set of crosstcutting reforms in areas rangt ing from policy coordination to improved financial and human resource practices. Further information on ongoing and pipeline projects can be found at: Ongoing Grants http://www4.worldbank.org/sprojects/ ¡ Institutional Development Fund Grant to Support the Development of a Monitoring and IFC Ongoing Projects Evaluation System (US$395,000). The Grant will contribute to the design and implementation of a ¡ Business Tourism Company. The Project cont sound monitoring and evaluation framework for sists of building and operating the Jordan Valley the Government to: (i) adequately monitor input ret Marriott and Spa, a resort of international stant quirements of large scale reform projects, and (ii) dards which include: (i) a 216troom hotel; and (ii) follow implementation of largetscale, multitsectt a health/medical spa and beauty care facility. The toral reform projects through various activities Dead Sea, due to its unique therapeutic charactert istics and climate, has established itself as a worldt ¡ Integrated Ecosystems/Rift Valley Grant class center for the treatment of various skin and (US$350,000). The objective of the Grant is to ast musculartjoint ailments, such as psoriasis and rheut sist in the preparation of the Integrated Ecosystem matism. The complex is managed by Marriott Intt Management in the Jordan Rift Valley Project, ternational and targets both health and leisure tourt whose main objective is to secure the ecological ists. integrity of the Jordan Rift Valley as a globally important ecological corridor and migrator flyway, ¡ EleZay. EltZay specializes in the manufacture through a combination of site protection and mant of high quality men's suits. The Project consists of: agement, naturetbased socioteconomic developt (i) an expansion program to diversify EltZay's prodt ment and land use planning. uct line by manufacturing men's outerwear; and (ii) a financial restructuring designed to strengthen Elt ¡ Sustainable Development of Renewable Enere Zay's balance sheet by replacing most of its shortt gy Resources and Promotion of Energy Efficiency and mediumtterm debt with longtterm debt. IFC's Grant (US$1 million). The objectives of the Grant investment is to help the company complete the are to: (i) contribute to the Government's efforts to Project's financial plan and improve its financial integrate climate change concerns in its economic structure by providing funding on terms and matt development strategy by removing the barriers to turities not otherwise available in Jordan. promoting the development of Jordan's renewable energy resources (wind, solar and geothermal), and ¡ Arab International Hotels Company (AIHC). in enhancing the efficiency of energy use in line The Project consists of the renovation and expant with the policy to meet the energy needs of Jordan sion of the Amman Marriott, a leading hotel located in an economic and environmentally sustainable in the Shmeisani area of Amman. The work comt manner; and (ii) support a feasibility study for the prises: (i) the complete refurbishment of all the hott Fourth Quarter 005/First Quarter 006 1 tel's 294 rooms; and (ii) the addition of conference ¡ Al Tajamouat Industrial City (ATIC). The and banqueting facilities, a health club, retail space, Project will expand the existing integrated indust movie theaters and an underground parking facility. trial estate, ATIC. The expansion commenced in The expansion and modernization of the Marriott late 2000 to keep up with the high demand for QIZ will boost the hotel to a 5tstar international level, space in Jordan. allowing it to match the quality level provided by its competitors. ¡ Indo Jordan Chemical Company. The Comt pany owns and operates a 244,000 mt/year (as of ¡ JordanHotelsandTourismCompany(JHTC). 100 percent P205) phosphoric acid plant and ancilt The Project comprises an extensive refurbishment lary facilities adjacent to a phosphate rock mine in of most of the Intercontinental Hotel's existing 366 the south of Jordan, as well as storage facilities at rooms and the addition of 125 new rooms and fat the Red Sea Port of Aqaba. P205 is used to produce cilities. The hotel will replace 15 of its elevators, DAP, a widely used fertilizer. The company has its boilers, and the kitchen, safety and telecom prepaid IFC. equipment. The Management Agreement between Intercontinental Hotels Corporation and JHTC has ¡ Middle East Regional Development Entere recently been extended to 2007. IFC has approved prise (MEREN) Silica Sand. The US$15.5 million a rescheduling of its loan to JHTC and JHTC has Greenfield Project is to establish the MEREN Silit prepaid IFC. ca Sand Plant, which will manufacture high quality silica sand to be mainly exported to European glass ¡ Modern Agricultural Investment Company manufacturers. (MAICO). The overall objective of the company's operations is to act as a market and technology ¡ Middle East Complex for Engineering, Elece beacon to help diversify and upgrade the range tronics and Heavy Industries (MEC). MEC is the and combination of crops and irrigation methods leader in Jordan for electronics and household apt which would develop a modern export sector, pliances. It is the premier appliance assembler in thereby maximizing the economic return on irrit the country and is the sole distributor of products gation water, and ultimately rationalize its overall for the Korean companies LG Electronics, Inc. and consumption. Daewoo. The Project aims to: (i) relocate MEC's existing production facilities for modernizing its ¡ Middle East Investment Bank (MEIB) Ree assembly lines and increasing efficiencies; and capitalization. The Project involves both MEIB's (ii) expand by establishing a joint venture with the (the smallest commercial bank in Jordan) recapt Haier Group of China. The expansion project will italization to meet the Central Bank of Jordan's broaden MEC's product line while maintaining the minimum capital requirements, and its restructurt focus on household goods to be sold primarily in ing, managed by Société Générale LibanotEurot regional markets. péenne de Banque. IFC investment is part of the larger recapitalization and restructuring program for MEIB. It complements the Technical Assist tance Program in Jordan, provided by both IFC Further information on IFC ongoing and and the World Bank. pipeline projects can be found at: http://www.ifc.org/projects ¡ Boscan Jordan (International Luggage Mane ufacturing Company). The Project is to expand operations of Boscan Jordan Group, a Jordanian manufacturer of softtside luggage products selling primarily to the United States market. The company has since switched its operations to textiles. ¡ Jordan Gateway Project. The Project is to det velop, construct and operate an industrial estate covering about 65 ha (of which about 50 ha would be in Jordan) at the Jordan/Israel border. 1 Fourth Quarter 005/First Quarter 006 Bank Lending to Jordan ­ Fact Sheet Projects Approved by Net Flows and Net Transfer Disbursements Fiscal Year Fourth Quarter 005/First Quarter 006 1 NEWS, REcENT AND UPcoMING AcTIvITIES First Forum On "Promoting Innovation And Entrepreneurship" In The Middle East And North Africa Casablanca's Technopark and lens of practical experiences, as provided by the the Bank's InfoDev organized participants. The importance of mapping out countt the first Regional Forum on the try approaches to ensure the success and growth of Enterprise Incubation, from January 31 to Febs SMEs, and the role of a regional network in this ruary 3rd, 2006 under the Ministry of Economic regard, was also explored. and General Affairs auspice This threetday knowledge sharing and learning This first forum for the MENA Region brought tot event on innovation and entrepreneurship was held gether InfoDev program grantees, regional incubatt in an effort to capture and synthesize lessons from tors, government policytmakers, donors agencies, individual country experiences to the regional level private sector players and other international agent where the participants presented their challenges cies and organisms. and successes. The main theme of the Forum, "Innovation and Entrepreneurship in MENA: Challenges and Strategies", covered areas such as an effectt For more information, please visit the official tive policy framework, private sector collaboration, website of the Forum: the role of the public sector and donors through the www.menapforumponpincubation.ma First Annual Private Sector Development Research Competition The International Finance Corporation of the Awards: Six awards will be granted to the top pat World Bank Group and the Financial Times (FT) pers as judged by the Awards Committee: invite entries for the first international private sect tor development research paper competition for 1 Gold Award US$30,000 2005t2006. 2 Silver Awards each US$15,000 3 Bronze Awards each US$10,000 The Theme is "Business and Development: The Private Path to Prosperity". The competition seeks All papers must be submitted in English and have to promote the best thinking on the role of business a maximum of 4,000 words. Abstracts must have in development. Papers should add to the global a maximum of 300 words. All entries must be ret discussion on private sector development and ecot ceived on or before June 30th, 2006. nomic growth by providing new and innovative analyses, perspectives or ideas. The target audience can be economic and financial policymakers, the international financial community or international/ For further information, please visit: domestic investors. www.ifc.org/competition 0 Fourth Quarter 005/First Quarter 006 DevForum E-Discussions and Communities: Continuing The Dialog Beyond Time-Bound e-Discussions: MENA Communities Of Practice (CoPs) DevForum has helped initiate several Communit · MENA Water: An open invitation CoP ties of Practice (CoPs) focusing on the MENA MENA Water seeks to identify common issues, region in the past six months. Interestingly all objectivesandneedsoftheparticipants,andbuilds have their origin in initial timetbound etdiscust on their experiences to create a fruitful environt sions where the avid interest of the participants ment for knowledgetsharing in the field of water to stay connected led to their transformation into resource management in the MENA Region. ongoing CoPs. The moderation of the CoPs in all instances has been taken over by the discussion · MENA CEN: An open invitation CoP participants. Four of the MENA CoP initiatives MENA CEN focuses on the topic of Commut are highlighted below: nity Empowerment and Development. Its ultit mate goal is to promote and advocate local apt · KsExchange: An open invitation CoP proaches to development and initiate reforms in This community aims to provide an open platt development planning. form for sharing ideas and experiences on the potential of etdiscussions and regional networkt ing--including opportunities and challenges, For more information, please consult: specific to the MENA region. http://www.worldbank.org Fourth Quarter 005/First Quarter 006 1 REcENT WoRlD BANK PUBlIcATIoNS MENA Publications Finally, it is important to develop new and more efficient social insurance mechanisms to improve the ability of the poor to cope with adverse shocks Economic Growth in Egypt: Constraints and that may occur as MENA countries move toward Determinants (MENA Working Paper No. 42). more open economies. Egypt accelerated its ongoing transition from a public sectortdominated economy to a private sectt Trade Liberalization, Factor Market Flexibility, tortled and markettoriented economy after the colt and Growth: the Case of Morocco and Tunisia lapse of oil prices in the midt1980s. Some aspects (Working Paper Series 3857). In recent years there of the economy, such as trade policy, have been has been an increasing recognition of the importt substantially transformed since then, whereas otht tance of complementary policies in enhancing the er aspects, such as public control of the financial benefits of a more open trade regime. This Study sector, have experienced less change in substance. focuses on the importance of factor market flext The Paper examines some determinants of growth ibility to trade reforms. Using the Global Trade in Egypt since the midt1980s using insights from Analysis Project (GTAP) model and database, the both standard econometric techniques and a diagt results show that the welfare impact of trade reform nostic approach. It finds that trends in government is contingent on the flexibility of factor markets, consumption, credit to the private sector and the with higher welfare gains occurring where factor average growth rate of OECD countries have been markets are more flexible, and vicetversa. Defining significant determinants of growth in Egypt in the two extreme factor market scenarios over Morocco past. The paper also presents evidence that suggests and Tunisia, the author finds that the welfare gains that inefficiency of financial intermediation is a of trade reforms under conditions of flexible factor significant current constraint on growth. markets can be as much as six times the gains comt pared with a rigid factor market scenario. This is Sustaining Gains in Poverty Reduction and Hus so because, whereas trade reforms may improve the man Development in the Middle East and North incentive structure for resource reallocation, the extt Africa (ISBN No. 0t8213t6527t4 SKU: 16527). tent to which resources move from less efficient to The Report provides an overview of trends in int more efficient sectors of an economy is dependent come poverty and human development indicators on the degree of flexibility of factor markets. over the last forty years. It notes that since the midt 1980s, there has been little progress in the poverty The Impact of Regional Trade Agreements and situation in the MENA region although human det Trade Facilitation in the Middle East and North velopment indicators have continued to improve. Africa Region (Working Paper Series 3837). The Accelerating poverty reduction and sustaining hut Middle East and North Africa (MENA) region>s man development improvements are important trade performance over the past two decades has challenges for the region in the future. been disappointing. Efforts to boost trade through a plethora of regional trade agreements (RTAs) are The future challenge for the MENA region will be underway. This Study examines the potential contt obtaining faster growth in a sustainable manner, tribution of regional trade agreements, as well as since growth remains the best guarantee of rapid trade facilitation improvements, in enhancing the income poverty reduction. At the same time, the development prospects of the region. Using the region has to build on its experiences to date with Global Trade Analysis Project (GTAP) model and education, health and social safety net reforms. In database, both intratregional integration and intet particular, the region needs to shift the focus of gration with the European Union are observed to education policy from quantity to quality and the have a favorable impact on welfare in the MENA focus of health policy towards better serving the region. The welfare gains from integrating with the poor. More attention must be paid to the conset European Union are observed to be at least twice quences of the ongoing demographic transition. as much as intratregional integration. Furthermore, Fourth Quarter 005/First Quarter 006 these welfare gains are observed to at least triple Trade in Health Services and the GATS addresses when the implementation of the RTAs is complet this challenge headton by providing analytical tools mented with trade facilitation improvements. to policymakers in health and trade ministries alike who are involved in the liberalization agenda and, Also available: specifically, in the GATS negotiations. Ø Gender and Development in the Middle East This Book informs and assists policymakers in fort and North Africa: Women in the Public Sphere mulating trade policy and negotiating internationalt (ISBN: 0t8213t5676t3 SKU: 15676). ly. There is ongoing and animated international det bate about the impact of GATS on public services Ø Unlocking the Employment Potential in the in general and health, in particular. In response, the Middle East and North Africa: Toward a New Book offers different perspectives from more than Social Contract (ISBN: 0t8213t5678tX SKU: 15 leading experts. Some of the authors stress opt 15678). portunities linked to trade in health services, others focus more on the risks. Ø Better Governance for Development in the Middle East and North Africa (ISBN: 0t8213t Where Is the Wealth of Nations?: Measuring 5635t6 SKU: 15635). Capital for the 21st Century (ISBN: 0t8213t 6354t9 SKU: 16354). The Book presents estimates Ø Trade, Investment, and Development in the of total wealth for nearly 120 countries, using ecot Middle East and North Africa: Engaging with the nomic theory to decompose the wealth of a natt World (ISBN: 0t8213t5574t0 SKU: 15574). tion into its component pieces: produced capital, natural resources and human resources. The wealth Bank Publications estimates provide a unique opportunity to look at economic management from a broader and compret hensive perspective. The Book's basic tenet is that Globalization for Development: Trade, Finance, economic development can be conceived as a prot Aid, Migration, and Policy (ISBN: 0t8213t6274t cess of portfolio management, so that sustainability 7 SKU: 16274). Globalization and its relation to becomes an integral part of economic policy makt poverty reduction and development are not well ing. The rigorous analysis, presented in accessible understood. The Book identifies the ways in which format, tackles issues such as growth, development globalization can overcome poverty or make it and equity. worse. The Book defines the big historical trends, identifies main global flows--trade, finance, aid, Corruption and Decentralized Public Govs migration, and ideas--and examines how each can ernance (Working Paper No. 3824). This Paper contribute to undermine economic development. examines the conceptual and empirical basis of corruption and governance and concludes that det By considering what helps and what does not, the centralized local governance is conducive to ret Book presents policy recommendations to make duced corruption in the long run. This is because globalization more effective as a vehicle for shared localization helps to break the monopoly of power growth and prosperity. It will be of interest to stut at the national level by bringing decisionmaking dents, researchers and anyone interested in the eft closer to people. Localization strengthens governt fects of globalization in today's economy and in ment accountability to citizens by involving citit international development issues. zens in monitoring government performance and demanding corrective actions. Localization as a International Trade in Health Services and means to making government responsive and act the GATS: Current Issues and Debates (ISBN: countable to people can help reduce corruption 0t8213t6211t9 SKU: 16211). Health ministries and improve service delivery. Efforts to improve around the world face a new challenge: to assess service delivery usually force the authorities to the risks and respond to the opportunities of the address corruption and its causes. However, one increasing openness in health services under the must pay attention to the institutional environment World Trade Organization's (WTO) General Agreet and the risk of local capture by elites. In the int ment on Trade in Services (GATS). International stitutional environments typical of some developt Fourth Quarter 005/First Quarter 006 ing countries, when in a geographical area, feudal poor provision of infrastructure; inefficient regulatt or industrial interests dominate and institutions of tion and taxation; and broader governance features, participation and accountability are weak or ineft such as corruption and macroeconomic stability are fective and political interference in local affairs is discussed without any comparative evidence on rampant, localization may increase opportunities their ordering. for corruption. This suggests a pecking order of anticorruption policies and programs where the rule of law and citizen empowerment should be the first priority in any reform efforts. Localizat To order by phone or fax: tion in the absence of rule of law may not prove to Phone: 1p800p645p7247 or 703p661p1580; be a potent remedy for combating corruption. Fax: 703p661p1501 To order onsline: http://publications.worldbank.org/ecommerce/ How Important Are Financing Constraints? The Epmail: books@worldbank.org Role of Finance in the Business Environment Research and working papers are also avails (Working Paper No.3820). What role does the busit able in electronic format frees ofscharge at: ness environment play in promoting and restraining http://econ.worldbank.org/ firm growth? Recent literature points to a number To access the World Bank esLibrary, an ons of factors as obstacles to growth. These factors: line, fully crossssearchable portal of over 3,000 inefficient functioning of financial markets; inadt World Bank documents, please visit: equate security and enforcement of property rights; www.worldbank.org/elibrary Fourth Quarter 005/First Quarter 006