In the Middle East and North Africa, Jordan's National Aid Fund (NAF) Cash Transfer Program is seen as an effective initiative for improving lives and opportunities. Supported by the World Bank and other partners, it has expanded its reach and impact. The program is recognized for its innovation and collaborative efforts.
A World Bank report from 2021 identified Jordan's Unified Cash Transfer program as one of the most redistributive and cost-effective initiatives in the country, reducing inequality by 0.7 percentage points and poverty by 1.4 percentage points. These figures demonstrate its role in addressing social disparities.
From 2019 to 2023, with increased support, Jordan doubled the NAF budget from JOD100 million to JOD240 million. This expansion allowed monthly support for 220,000 households in 2023, compared to 97,000 in 2018. Covering about 62 percent of the poor in 2021, it is now the largest regional program targeting the poorest individuals.
The NAF played a key role during crises like the pandemic with emergency cash transfers supporting daily workers who lost income. Beneficiary Nada Al-Ramahey said: “I benefited from the cash support that covered my children’s needs.”
Alongside financial aid, economic empowerment efforts help beneficiaries enter the labor market through skill improvement programs. The Ministry of Labor launched a National Employment Program in 2021 aiming to place young people into formal jobs; seven percent of its beneficiaries are also NAF recipients. By 2024, they placed 2,300 beneficiaries in formal jobs.
Beneficiary Fadia El-Henawey expressed gratitude for these initiatives: “When we receive training from the NAF, it provides us with job opportunities.”
The program also adopted digital technologies for transparency and efficiency. A new platform automates processes while mobile teams ensure access for all beneficiaries including those with disabilities. Digital payment methods like e-wallets have improved access and minimized errors.
The World Bank highlights universal social protection as crucial for reducing poverty. Jordan's commitment is evident through its National Social Protection Strategy and a strong National Unified Registry (NUR), which ranks applicants based on poverty levels aiding effective targeting.
In 2024, Jordan plans to extend NUR use to additional services such as health insurance and energy support for broader social protection coverage.
The World Bank collaborates closely with Jordan to enhance cash transfer designs addressing poverty effectively. Through projects and technical assistance initiatives they aim to improve operational efficiency making this program an inspiration regionally.