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World Bank Supports Jordan’s Green, Resilient, and Inclusive Recovery

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The World Bank Group’s Board of Executive Directors approved on June 10, 2021 a US$500 million Program to catalyze public and private investment in Jordan for a green and inclusive recovery from the COVID-19 pandemic. The program is expected to help Jordan accelerate its recovery and create more jobs by capitalizing on the economy’s potential, especially its green growth opportunities, and to strengthen the Government’s accountability mechanisms for delivery. The Asian Infrastructure Investment Bank (AIIB) is also preparing an additional US$250 million in financing to support the Program.

The Inclusive, Transparent and Climate Responsive Investments Program-for-Results (PforR) is part of the US$1.1 billion recently announced by the World Bank Group (WBG) in combined loans and grant financing support from the WBG and international partners to support Jordan in responding to the pandemic and promoting an early, climate-resilient, and inclusive recovery.

Jordan is ready to embark on a climate-responsive recovery and a new growth trajectory. Climate risks due to water scarcity, rising temperatures, and extreme weather present new opportunities for Jordan to become more resource-efficient and more competitive. Investing in greening of infrastructure and services creates jobs and economic value. Jordan’s Nationally Determined Contributions (NDC) under the Paris Agreement on climate change provides a platform to identify opportunities that also benefit the society.

The Program also helps Jordan to include gender-informed assessments in investment design and policy formulation. This is important as less than 15% of Jordanian women in the country were in the labor force in 2019, one of the lowest rates in the world, marking an enormous untapped potential for the economy and society.

Jordan is ready to turn the corner on its investment environment and to develop a greener, more climate responsive and more efficient economy,” said Nasser Shraideh, Minister of Planning and International Cooperation of Jordan. “This program will help Jordan move in that direction and kickstart the post-pandemic economic recovery.”

Jordan has been one of the most active and pioneering countries in the region in ratifying and adopting international climate change initiatives, including the Paris Agreement,” said Saroj Kumar Jha, Mashreq Regional Director, World Bank Group. “Jordan can now capitalize on these efforts to become an attractive destination for green and climate-related investments.”

The Program supports the implementation of investment reforms that were initiated under the Five-Year Reform Matrix. These reforms (i) strengthen processes and systems to deliver well-targeted public investments, including Public-Private Partnerships (PPPs); and (ii) further improve the environment for private investment, including tourism. In both cases the program supports the greening of investment,” said Christos Kostopoulos, World Bank Lead Economist.

The Program will also promote inclusion and transparency in its implementation. The PforR includes enhanced public consultation processes and supports greater accessibility of data to deliver more citizen-informed and better results. The PforR will institutionalize public consultation in the preparation of large capital projects to ensure that public investment promotes social inclusion and caters to the needs of citizens, including marginalized people and those with disabilities. The public will also be consulted during implementation and ex-post evaluation.

Alongside the PforR, the World Bank will also be launching a Country Climate and Development Report (CCDR), a flagship analytic report, to support evidence-based policies and reforms to green the economy, create jobs, and attract private sector capital. Jordan will be one of the first countries globally to pilot the CCDR.

The Program-for-Results is a World Bank Group financing instrument that supports programs already included in the government budget. Importantly, it links the disbursement of funds directly to the achievement of specific agreed program results over the five-year program period. The targeted results are publicly disclosed upon project approval, and achievement of results during the course of program implementation is verified by the Jordan Audit Bureau and validated by the World Bank.

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Naftali Bennett Highlights Tech and Trade, Bridge-Building and Climate Change

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Prime Minister Naftali Bennett of Israel used his address to the Davos Agenda 2022 to highlight the role of digital technologies in confronting the Omicron variant and climate change. He also highlighted how regional bridge-building with the United Arab Emirates and neighbouring Arab states has accelerated trade volumes.

Israel was the first country in the Omicron wave to shut its skies for a few weeks to buy time and formulate the best policy response based on analysis of data from its national database and the actions of other countries. “The pandemic is all about data information and gleaning insights from that data”, Bennett said. Israel has developed a “variant radar” of data scientists dedicated to gathering intelligence on emerging variants around the world. “That’s why,” he added, “we reacted to Omicron before it even got its name.”

The pandemic has changed the ways we work, with the world more dependent than ever on remote working. Bennett pointed out that nearly half the global investment in cyber defence in recent years has come from Israel.

Turning to regional bridge-building, he said the Abraham Accords – cooperation agreements signed between Israel, UAE and Bahrain in 2020 – have the potential to greatly accelerate regional trade. Already trade between Israel and UAE has “skyrocketed”, while trade with Egypt remains “tiny”. Bennett views UAE as “a gate to the East” and regards “Africa as a big potential partner for Israel”. He recently met President Sisi of Egypt and King Abdullah of Jordan and said: “I want to inject more content into these relationships.”

His wider strategic aim is to firm up agreement among regional partners who are coming to see Israel as “an anchor of stability in a very tumultuous region.”

The prime minister highlighted how his move to open Israel’s borders to Palestinians is helping tens of thousands from Gaza and the West Bank to make a better living. In his speech, Bennett spoke about joint Israeli-Palestinian industrial zones to allow Palestinians to work in very high-tech sectors. “I believe that through business, through economy, through jobs is the most sustainable way to bring stability,” he said.

Israel has committed to reach net zero on carbon emissions by 2050. Bennett pointed to Israel’s “small carbon footprint”, adding that the country’s unique contribution to fighting climate change is through its high-tech innovation sector. He called on Israel’s cohort of young entrepreneurs to start developing the “technologies that do not yet exist”, which the world needs to deliver net zero by 2050. Israel is already a world leader in climate-relevant technologies such as generating, conserving and recycling freshwater, he said, while noting that the climate crisis gives it the opportunity to grow its capacity in renewable energy and alternative meat products.

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Guterres Calls on Private Sector to Help Developing Countries with Post-Pandemic Recovery

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In a special address at the virtual World Economic Forum Davos Agenda 2022 on Monday, United Nations Secretary-General António Guterres outlined three urgent areas that need to be addressed for the world to emerge from the ongoing global economic and health crisis and to ensure the UN Sustainable Development Goals are achieved.

“Recovery remains fragile and uneven amid the lingering pandemic, persistent labour market challenges, ongoing supply chain disruptions, rising inflation and looming debt traps,” he said. “To chart a new course, we need all hands on deck, especially the global business community.”

The first area that needs immediate attention is confronting the COVID-19 pandemic with equity and fairness. Citing the World Health Organization’s global target to vaccinate 40% of people in all countries by the end of 2021 and 70% by the middle of 2022, Guterres said the world is nowhere near these targets. “If we fail to vaccinate every person, we give rise to new variants that spread across borders and bring daily life and economies to a grinding halt,” he said.

To ensure vaccine equity, he called on countries and manufacturers to prioritize vaccine supply to the global programme COVAX and to support the local production of tests, vaccines and treatments around the world. He also asked pharmaceutical companies to stand in solidarity with developing countries by sharing licences, know-how and technology to find a way out of the pandemic.

The second challenge is the need to reform the global financial system, especially as low-income countries are at a huge disadvantage and are experiencing their slowest growth in a generation. “The burdens of record inflation, shrinking fiscal space, high interest rates and soaring energy and food prices are hitting every corner of the world and blocking recovery, especially in these low- and middle-income countries,” Guterres said. This is stifling any hope of growth by making it even more difficult for governments to invest in the sustainable and resilient systems.

He urged business leaders to help shape a global financial system that works for all countries. This includes working to restructure the long-term debt architecture, addressing corruption and illicit financial flows, ensuring that tax systems are fair and designed in a way that reduce inequalities, and bringing together governments, businesses, the financial sector and international financial institutions to build up private investment in developing countries.

Supporting climate action in developing countries is the third area that needs immediate attention, especially as global emissions are set to increase by 14% by 2030.

“Even if all developed countries kept their promises to drastically reduce emissions by 2030, global emissions would still be too high to keep the 1.5 degree Celsius goal within reach. We need a 45% reduction in global emissions this decade,” Guterres stressed.

Climate shocks, including extreme weather events, forced 30 million people to flee their homes in 2020 alone – three times more than those displaced by war and violence. And 1 billion children are at an extremely high risk of the impacts of climate change. “Turning this ship around will take immense willpower and ingenuity from governments and businesses alike, in every major-emitting nation,” he said. “We see a clear role for businesses and investors in supporting our net-zero goal.”

This, he said, calls for the creation of coalitions of government, public and private financial institutions, investment funds and companies with the technological know-how to provide targeted financial and technical support for every country that needs assistance.

The World Economic Forum’s Climate Action Platform is helping businesses, governments and NGOs accelerate and scale ambition and partnerships needed to drive a sustainable and inclusive future, and its Alliance of CEO Climate Leaders is engaging policy-makers to help deliver the transition to a net-zero economy.

Guterres concluded by saying that many countries need the support, ideas, financing and voice of the global business community.

“If we fail to provide debt relief and financing to developing countries, we create a lopsided recovery that can send an interconnected global economy into a tailspin,” he said. “If we fail to reduce inequalities, we weigh down economic progress for all people in all countries.”

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Modi Urges All Countries to Embrace Sustainable Lifestyles

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Prime Minister Narendra Modi of India used his address to the Davos Agenda 2022 to call on all countries to shift from a throwaway culture towards more sustainable lifestyles. Modi emphasized that while India is home to 17% of the world’s population, it contributes only 5% of global emissions.

“It is very essential that we move away from today’s take-make-use-dispose economy and towards a circular economy,” he said. India, which co-launched the International Solar Alliance at COP26 to ensure universal access to affordable solar energy, today generates 40% of its energy from non-fossil sources. Modi underlined that the next phase of India’s growth will be “green, clean, sustainable and reliable”.

The prime minister questioned the ability of the world’s multilateral organizations to meet challenges that did not exist when they were created. He said that reforming these institutions is “the responsibility of every democratic country”. In a clear call for greater global cooperation, he said: “Today, more than ever before, countries need each other’s help – this is the only path to a better future.” He offered India’s vision of One Earth One Health as a means of responding to global challenges, from the COVID-19 pandemic to climate change.

India is an entrepreneurial powerhouse that has created 10,000 new start-ups in the past six months and over 40 unicorns in 2021, Modi said, propelling the country into the top three in the world for billion-dollar new ventures. Its digital infrastructure is developing rapidly, with over 4.4 billion transactions taking place on its United Payments interface in the past month alone. Over the period 2020-2021, India attracted $82 billion in foreign direct investment – a new record. Modi said India is committed to becoming a trusted partner for global supply chains.

In a bid to improve the ease of doing business, Modi outlined the measures his government is taking to reduce government intervention to the minimum. He has done away with over 25,000 tax compliances in the past year and deregulated most sectors for investment, except for defence, aerospace and telecoms. His government is investing $1.3 trillion on connectivity-related infrastructure through its GatiShakti National Master Plan, which includes connecting over 6,000 villages through optical fibre. The plan’s aim, he said, is to “give new impetus to seamless connectivity for movement of goods, people and services”. India is also investing $26 billion to boost manufacturing and resilient supply chains.

The Prime Minister also spoke to the importance of collective and synchronized action to face global challenges. He highlighted new technology as an important area for countries to act together, “Another example is cryptocurrency. Given the kind of technology it is associated with, the decisions taken by a single country will be insufficient to deal with its challenges.”

Modi said India enters 2022 “infused with self-confidence”. Its economic growth is projected to hit 8.5%. It has already administered 1.6 billion COVID-19 vaccines. And, he added: “Our multilingual, multicultural environment is a great strength [that] teaches us not just to think of ourselves in times of crisis but to work in the best interests of the world.”

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