$700 million from the World Bank to Jordan to support education, health and social care

The World Bank Group has approved two new programs to strengthen human capital in Jordan through targeted investments in education, health, and social assistance, as well as to enhance the resilience of Jordanian households to shocks. With financing of US$700 million, the Jordan Human Capital Program and the Jordan Education, Skills, and Administrative Reforms Modernization Program – MASAR, aim to drive sustainable and inclusive growth, enhance the quality of education, and equip youth with the skills needed for the labor market of the future.

Over the past years, Jordan’s resilience to increasing regional volatility has been praised, but external shocks have impacted economic growth, job creation, and limited the ability to address pressing social and economic challenges. With over 66% of Jordan’s population under the age of 30, the Kingdom has a unique opportunity to leverage the demographic dividend for development and growth. However, gaps in access to education, particularly in early childhood, persist, and increased investment is needed to improve the quality of education and advance and expand technical and vocational education and training to boost future employment opportunities. The high prevalence of risk factors, such as smoking, and the growing burden of non-communicable diseases lead to increased morbidity, lower productivity, and reduced labor force participation. Despite the remarkable progress made by the Jordanian government in expanding the scope of social protection programmes across the Kingdom, especially government-supported programmes such as the cash transfer programme, there are still large gaps in the coverage of the social protection system, as one-third of Jordanian workers are not yet covered by the social security umbrella.

• Increase investment in education

“To achieve the Kingdom’s development ambitions, Jordan must harness its greatest asset – human capital, especially young people and women,” said Jean-Christophe Carret, World Bank Regional Director for the Middle East. “By increasing investment in education, health, and social protection, Jordan can strengthen its economy’s resilience to shocks and inclusion, and enable young people, especially women and the most vulnerable, to fully participate in and benefit from the country’s growth and development.”

The Jordan Human Capital Program ($300 million) aims to support the governance and effectiveness of social sectors to ensure better, more sustainable outcomes for all Jordanians and enhance resilience, including protecting households from the negative impacts of climate change. The program supports the delivery of cost-effective, outcome-oriented services and focuses on further strengthening governance and accountability in public spending across key sectors, namely: education (the most important sector for equipping young Jordanians with the skills needed to grow the economy), health (a sector responsible for a large proportion of arrears despite regular cash injections), and social assistance (where the cash transfer program is among the most advanced and effective programs in reducing inequality and poverty rates).

The Masar programme ($400 million, including a $7 million grant from the Global Concessional Financing Facility), aims to equip Jordanian children and youth with skills relevant to the labour market and the ongoing economic transformation in the Kingdom. The programme focuses on three main areas: improving the transition from home to school, increasing access to basic education, enhancing the transition from school to work, expanding access to vocational and technical education and training that meets labour market needs, and improving the efficiency of the education system and human resource management. The Masar programme includes a technical assistance and capacity building component to support the government in its implementation, as well as the implementation of vital reforms.

By 2029, the Masar programme is expected to achieve major milestones, including enrolling an additional 25,000 students in the second grade of kindergarten, ensuring that 4,200 kindergarten classrooms meet minimum quality standards, and enrolling 150,000 students in grades 1-3 in targeted programmes to improve basic skills. The Masar programme also aims to graduate 50,000 students from accredited technical and vocational education and training programmes in priority sectors, and ensuring that 70% of teachers and school principals are appointed under the civil service system through a new competency-based mechanism. The programme will also benefit refugees and contribute to the Jordan Response Plan for the Syria Crisis 2024-2026.

The Human Capital and Masar programs in Jordan are fully aligned with the Kingdom’s reform priorities, as set out in the Economic Modernization Vision and the Public Sector Modernization Roadmap 2023-2025, and prioritize human capital, as well as supporting the implementation of the highly ambitious “Smart Jordan” program. The Masar program is also consistent with the World Bank’s ongoing support for education sector and public sector reform in Jordan. The program builds on previous achievements and aims to establish a more efficient, inclusive, and responsive education system.