In the Middle East and North Africa, Jordan's National Aid Fund (NAF) Cash Transfer Program stands as a shining example of an effective program that helps build better lives and opportunities for people. With support from the World Bank and other partners, the program has expanded its coverage and increased its effectiveness. Today, it is recognized as best practice for its impact, innovation, and the collaboration that went into launching it.
According to a World Bank report (2021), Jordan's Unified Cash Transfer program (UCT) was identified as one of the country’s most redistributive and cost-effective programs, estimated to have reduced inequality by 0.7 percentage points and poverty by 1.4 percentage points. These figures highlight the significant impact the program has had in addressing social disparities and improving the lives of the most vulnerable.
Expanding Coverage and Increasing Effectiveness
With the support of the World Bank and other partners, between 2019 and 2023, the Government of Jordan has more than doubled the budget of the NAF recurrent Cash Transfer Program from JOD100 million to JOD240 million. This increase has allowed the program to extend its reach, providing monthly support to 220,000 households in 2023, up from 97,000 households in 2018. With the estimated coverage of 62 percent of the poor in 2021, Jordan's cash transfer program now holds the distinction of being the largest in the region in terms of coverage for the poorest individuals.
The NAF program played a pivotal role in supporting households particularly in times of crisis. For instance, during the pandemic, the government launched the emergency cash transfer initiatives in 2020 and 2021 respectively, providing much-needed support to daily workers who had lost their income.
“I benefited from the cash support that covered my children’s needs,” said Nada Al-Ramahey. “Before receiving the support, many things were lacking for my children like paying rent, school expenses, water and electricity. Now, al-hamdulilah, it covers my needs and those of my children.”
Empowering Beneficiaries
The NAF Cash Transfer Program is complemented with economic empowerment efforts, which help beneficiaries move into the labor market by improving their skills and connecting them to work opportunities, in collaboration with various national institutions and development partners.
In 2021, the Ministry of Labor launched the National Employment Program that aims to upskill and place 60,000 young people in the formal labor market. The National Employment Program is supported by the World Bank and seven percent of its beneficiaries are also NAF beneficiaries. As of 2024, the NAF and the Ministry of Labor have successfully placed 2,300 beneficiaries in formal jobs.
This economic empowerment initiative helped Fadia El-Henawey gain the skills needed to work toward her dream of starting her own sweets making business. “When we receive training from the NAF, it provides us with job opportunities,” El-Henawey said.
Harnessing Technology for Transparency, Efficiency, and Impact
The NAF Cash Transfer Program also embraced digital technologies to modernize and streamline its operations. The program developed a state-of-the-art platform that automates processes and ensures transparency and accountability. It also provides support through mobile teams and registration centers, ensuring equitable access for all, including the elderly and people with disabilities.
One of the significant achievements of the NAF Cash Transfer Program is the introduction of digital payment methods, such as basic bank accounts and e-wallets, for beneficiaries. This digitization has not only minimized errors but also improved access to payments and increased financial inclusion. The program's success in promoting digital payments has even led to the expansion of basic bank accounts by the Central Bank of Jordan, on the national level, further supporting the financial inclusion of people.
Building Toward Universal Social Protection
The World Bank recognizes the importance of universal social protection floor, which provides each person with the support they need, when they need it, and contributes to reducing poverty and promoting shared prosperity. The Government of Jordan’s commitment to establishing this social protection floor is evident in its National Social Protection Strategy.
The Government of Jordan has developed a strong National Unified Registry ‘NUR’ which connects more than 30 institutions. The NUR enables the ranking of applicants based on their poverty levels, thereby streamlining the targeting process. This registry has been instrumental in the effective expansion and delivery of the NAF cash transfer program, including the emergency response to COVID-19. In 2024, the Government approved a plan to extend the use of the NUR to five additional social protection services for the poor, including health insurance, energy support, and assistance for people with disabilities. This expansion provides a strong platform for broadening social protection coverage and paves the way for achieving universal coverage.
United for Progress: A Collaborative Partnership to Strengthen the National Aid
The World Bank has collaborated closely with the Government of Jordan to strengthen the Cash Transfer design, enhance its effectiveness in addressing poverty, building resilience, and creating a brighter future. Through various projects and technical assistance initiatives, the World Bank and other development partners have supported the NAF in improving targeting mechanisms, enhancing operational efficiency, and advancing the safety nets effectiveness.
The Cash Transfer Program in Jordan stands as an inspiration for other countries in the region, and beyond, working to deliver effective social protection systems for the poor and vulnerable.
