The present document was prepared for the Brussels II Conference.
The document was jointly developed by the Government of Jordan, the EU and the United Nations.
The partnership between the Government of Jordan (GoJ) and international community strengthened over the course of 2017 and delivered a set of benefits to both vulnerable Syrian refugees and Jordanian households. Building on the commitments agreed in London in February 2016 and detailed in the Jordan Compact (JC), this partnership reinforces the resilience of vulnerable communities, whilst addressing the humanitarian needs of Syrian refugees. In overseeing a paradigm shift in how to respond to protracted displacement crisis, the holistic approach of the response in Jordan is widely viewed as a model of global best practice.
The success of this partnership is dependent upon the international community acknowledging Jordan’s role in hosting Syrian refugees, and the GoJ and international community meeting the reciprocal commitments under the JC. This is a global public good necessitating fair burden sharing with support provided to Jordan being proportionate to Jordan’s carrying capacity and the impact of continuing regional conflict and instability, external shock and prevailing economic conditions. Moreover, the reciprocal commitments under JC will depend on the Government of Jordan and the international community delivering mutually and holistically on their commitments as set out in the JC. The international community acknowledges that the GoJ’s ability to implement its commitments is proportional to the support extended by Jordan’s development partners and other international partners.
In 2017, the international community, as part of their JC commitments, maintained significant levels of funding with USD 1.7 billion committed to the Jordan Response Plan (JRP), representing two-thirds of the funding requirements. Similarly, other flows of support, including concessional financing and budgetary support were maintained. As a result, the international community’s financial commitment to Jordan in 2017 exceeded that of previous years. In upholding its commitments, the GoJ expanded access to education and jobs for Syrian refugees and in doing so, advanced efforts that seek to transform the refugee challenge into a development opportunity (Part I).
As the Syria crisis moves into its eighth year, Jordan is reaching its limits in carrying capacity under the current conditions and is under an IMF Extended Funding Facility (EFF) programme which limits fiscal space. Assistance to Jordan must consider the high proportion of refugees living in host communities, the relatively low per capita income of Jordan, stressed levels of available resources like water, the cost of developing infrastructure and public services, and threats to social cohesion.
The GoJ and international community are committed to finding practical solutions to the multi-faceted issues that remain, particularly in the areas of inclusive and equitable economic growth and job creation, livelihoods, education and social protection. Both parties will continue to work together in a spirit of partnership and fair responsibility sharing, in an effort to further strengthen Jordan's long-term resilience, fiscal stability, and its ability to support both host communities and Syrian refugees, with particular focus on vulnerable populations including women and youth (Part II).
The international community reaffirms long-term political and financial support to Jordan. As per the JC commitments, (i) sustained funding is made available to the Jordan Response Plan 2018-2020 which covers both humanitarian and resilience needs of refugees and host communities with increased support to host communities’ priority capital expenditure projects; (ii) a sustained level of grants and concessional loans, including budget-support, made available on a multi-year basis; and (iii) increased use and delivery of assistance through national capacities to implement assistance projects, cash assistance and purchases of national goods and services adding maximum value to the Jordanian economy. The international community will seek to maintain grant funding to JRP at 2017 level and continue to work on expanding the donor base and use existing mechanisms, such as Trust Funds, including the EU Regional Trust Fund in response to the Syria crisis, Global Concessional Financing Facility (GCFF), Macro Financial Assistance (MFA), Development Policy Loans (DPLs) to provide concessional financing for budget support in addition to the EU External Investment Plan (EIP).
The international community will seek to provide additional resources, preferably in the form of multi-year commitments, inclusive of grants and budget support, concessional finance as per JC commitments. This is consistent with both the aims of the JC and the IMF call to assist Jordan in dealing with its financing gap, including by seeking to front-load support to the GCFF in Jordan. The international community will continue to provide financial and technical assistance to support Jordan’s reform process under the Executive Development Programme, inclusive of the Jordan Economic Growth Plan (2018-2020), and Jordan’s National Human Resources Development Strategy.
Jordan is committed to continue improving the business and investment environment as well as continuing its fiscal adjustment and structural reforms in line with the Jordan 2025 Vision, Jordan Economic Growth Plan and the ongoing Extended Fund Facility Programme (EFF) with the IMF. Jordan is also committed to delivering on vertical and horizontal reforms outlined in the five-year Equitable Growth and Job Creation Policy Reform Matrix being developed with the support of the World Bank and key development partners of Jordan.