Enhanced Productivity Program

EPP Background
The Enhanced Productivity Program was created by Cabinet decree on 3 January
2002, adopting a comprehensive developmental approach to improve the standard
of living for all Jordanians, especially rural and disadvantaged individuals, by
creating and increasing access to opportunities for productivity gains in each of the
governorates. The decision to launch an Enhanced Productivity Program (EPP)
developed from consultations between the public, private and non-governmental
sectors and the consensus that was reached on national socio-economic priorities
during the Second (Dead Sea) National Economic Forum in March 2001.

Program Goal
The overall goal of the program is to reduce poverty through sustainable
development. This is done by enhancing the capacity of the government, private
sector, and civil societies at the local level. The end result will be individuals and
communities generating income and employment in their towns and villages, with
the government playing the role of enabler and supporter.

Program Mechanism
The program consists of Four components linked two core activities, integrated
local development (ILD) and business development (BD). Local development can
be defined as projects which support participation of local communities towards
economic growth through income generation, access to markets, access to
information and know-how. Business development is projects, which support BDS
market development through stimulation of supply and demand of commercially
sound services. The following concepts were the core of the design of the EPP
projects:

1. Projects are based on local needs and resources and should have
development potential. Starting point of interventions are governorate
surveys in which the development potential, resource potential and peoples
potential are identified.

2. Provider versus facilitator: The main thrust of the EPP is to contribute to

the capacity development of intermediary organizations. In this regard the
organization is gearing towards the role of a facilitator facilitating
development instead of getting directly involved in the delivery of projects.
Stakeholders at community level deliver actual projects

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3. Role of subsidies : In the context of the remote rural areas it is not possible
to work without subsidies, but as much as possible the principles of the
BDS Market Development Approach are applied (e.g. charging fees for
services in more developed communities of the programme). In deciding
on the role of subsidies, the demand and supply situation of BDS is taken
into account Similarly the role of the subsidy in the ILD is a short term one,
where technical and financial assistance is given to the local communities
so that they can sustain their own development in the long run

4. Integrates approach: The programme has an integrated approach, in which

different components are incorporated together. There are generic business
services, public business services (e.g. information, advocacy, sector
promotion, policies and regulations). And services which are strongly
related to a certain sub-sector (e.g. market promotion and linkages).

5. Institutionalization: At the central level, the EPP / PMU will be

institutionalized within MOP. At the governorates level, planning for
development will gradually be included in the governorates development
plan. Under the Governance Strategy, a development Committee is
established. Strengthening of capacity of partner organizations at
governorates level facilitates the sustainability of the programme, while the
creation of resource and information centers within the governorates
development units supports innovation and promotion on a large scale and a
continued basis.

6. Sustainability: The programme aims at strengthening the networks and

capacity of local partner organizations in supporting development and
mobilizing local initiatives to stimulate growth and reduce poverty. Once
these networks have been developed and are mutually beneficial,
stakeholders are encouraged to continue this process

7. Multi actor approach: Currently in the EPP, there is strong emphasis on

implementing components through outsourcing, and usually different
stakeholders are involved. These stakeholders come from the private sector,
government and civil society. Each of these stakeholders play a distinctive
role, the coordination of all parties is very important. Furthermore the
specific roles of all these organizations needs to be supported by the
resource and information centers

8. Enabling environment: The support of policy formulation and

implementation (based on experiences of the programme), public private
dialogue and partnerships and support to the formulation of local economic
development plans.

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EPP Components:

A. Integrated Local Development (ILD):

(ILD) using a community change approach in development. This approach

develops the capacity of the community system at a broader level than the
individual or even the family. Although the community change approach is often
greater in impact than individual approaches. One of the main frustrations with
these types of programs is the tremendous amount of time it takes to get from
program conception to tangible community changes. Therefore, (ILD) must be
able to achieve:

1. Changes in the efficiency and effectiveness of community group processes

2. Changes in community structures (Policies, citizens, resources, etc.)

3. Changes in community social, economic, and environmental conditions.

1. Rural Community Cluster Development (RCCDP)

The Rural Community Development Clusters are the flagship of the program and
are designed to aid in the process of returning rural communities to economic and
social viability. Local citizens, acting through committees, select and implement
projects, and contribute at least 25% of the cost. The objective of the RCCDP is to
contribute to a sustainable rural economy that will strengthen the social and
economic fabric of the rural communities in Jordan and ultimately play a
prominent role in overall Jordanian social and economic development as part of
the ESPP

The program creates a partnership with communities that aim to accomplish five
goals:

 Revitalize essential small infrastructure, such as water and sewage systems

 Create income-generating opportunities, in particular agriculture-based
activities

 Improve health, education and quality of life through community assistance

 Address critical environmental problems through such interventions as

reforestation, sanitary drainage, or landfills

 And promote civic participation

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The thread that links activities in these areas is the mobilization of the energy and
talents of local people. The RCCDP is doing this through the formation of village
and cluster committees to prioritize, plan and carry out projects to achieve the
goals listed above. The committees consist of local leaders and representatives
from different local organizations and entities. The committees are inclusive and
democratically run, with maximum feasible involvement of women in all aspects
of the program. In many cases, the committees have the advantage of collaboration
with similar committees or other organizations that have participated in cluster
work in the region. Participation is the essence of the program; capacity building,
And community empowerment is the overall aim of the program.

Pockets of Poverty Program (PPP)

The Pockets of Poverty Program was launched on 1st. September 2005, to expand
the model introduced in the RCCDP to the 26 sub-districts which were identified
as having poverty levels over 25% in the 2004 Poverty Assessment. These are
mostly rural areas, and they are dispersed throughout the country, though there is a
concentration of them in the north. Given the overall distribution of the country’s
population, this concentration merely reflects the country’s population density
situation.
The program will invest JD (500,000) in each of the pockets of poverty, with the
same components everywhere. It is implemented by national NGOs.

The program includes the following components:

a) The creation or expansion of one or more cooperatives to establish a
major economic investment, to be decided in each area by the
population through the Development Committee established by the
Program. These cooperatives will receive an investment of between JD
300 000 and JD 350 000 from the program and this capital injection is
effectively a grant to the cooperative. The mechanism for reaching the
poor through this component is twofold: on the one hand poor people
are encouraged to participate in the capital of the cooperative and
become members, and some concessions are made to assist them to
raise the funds to finance their shareholding. On the other it is intended
that they will obtain employment in the enterprises both during the
construction and initiation phase and later as workers in the
establishment.
b) Community Infrastructure Program component, which will finance
economically relevant infrastructures, such as electricity connections for
the cooperative and road links small credit activities, through the NGOs
or other subcontracted micro-finance institutions to assist women and
other poor people in the area to initiate micro-enterprises

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 c) Training for poor people in the area, in technical as well as business
activities.

2. Direct interventions & Small Grants (DISG)

The Direct Interventions addresses the immediate and urgent needs of the poor in
local communities by providing them with the necessary financial and technical
support to carry out various projects that address the persisting problem and
require immediate intervention. This includes projects which can be implemented
quickly, and can be rapidly expanded with additional funding. The small Grants
Projects have a longer time horizon and include innovative new approaches to
problem areas at providing needs for the poor. This is done through offering the
financial support to local NGOs to establish different projects, specially income
generating projects, suitable for the problems regarding poor areas in the kingdom
that need immediate intervention. The work with local NGOs was expanded
through Qudorat Program launched on 11 April 2004.

Strengthened Jordanian Civil Society (Qudorat)

Experience in Jordan and global best practices have shown that while the
resources and overall direction of the government are critical, implementation of
projects is best handled by non-governmental organizations, both private and
public, for-profit and not for-profit. These organizations are present across the
Kingdom but tend to cluster in urban areas, with nearly a third operating in the
Amman Governorate. Despite their reach and essential role, CBO’s in Jordan face
a number of organizational and implementation problems. Although, these
organizations have a mandate, timeframe and reach which make them essential
partners for the government in the joint effort to provide opportunities for
economic growth for all Jordanians. It is therefore in the interests of the
government, the CBO’s and the people of Jordan that these organizations be as
strong as possible in the efficient delivery of the services they provide. This
project provides select Jordanian CBO’s with the tools they need to enhance their
services and their ability to provide effective implementation for government and
donor-funded economic development projects in Jordan. The project encompass
three major components, Capacity Building and Grants Program, and Sector
Enhancement. Expected Results:

1. Enhance the ability of Jordanian CBO’s to implement projects on behalf of

their constituents.

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 2. Drive towards sustainability for Jordanian CBO’s by increasing customer
service and therefore membership retention and fund-raising ability.
3. Create an environment of public support for the work of CBO’s in Jordan.
4. Build a partnership between government, privet sector and Jordanian
CBOs, including methods of project development, contracting and the laws
and regulations affecting CBOs.
5. Implement a number of small projects with direct benefit to the constituents
of certain CBOs.
6. Support the creation of a development cadre in Jordan.

3. Community Infrastructure Program (CIP)

The Main Objectives is to enhance productivity and local development through
infrastructure projects that support enterprise development in tourism,
agribusiness, municipal, and governorates development. The CIP provides finance
for large projects in the agribusiness and tourism sectors, and in support of
municipal and governorates development, or village cluster projects that may lack
funding. It also offers grants to municipalities, local councils and NGOs and privet
sector to support projects in least developed communities Expected Results:

1. Enhance individual, community and regional productivity through

infrastructure development
2. Develop infrastructure in support of individual, village and regional
enterprise development and income generating projects

3. Encourage large-scale infrastructure projects in tourism and agriculture

4. Tackle the most pressing infrastructure development priorities of the

municipalities and governorates

5. Create employment opportunities

6. Support infrastructure development for Village Clusters

7. Create an environment in the governorates that is favorable to private sector

investment

B. Enterprise Developments
1 Enhanced Productivity Centers Program (EPC):

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The Enhanced Productivity Centers (EPC) project is intended to provide needed
advice and guidance for Jordanians in the use of locally available resources to
start, develop, improve, and extend their businesses or their business initiatives. In
essence the project will make available all the professional expertise in the form of
a “helping hand” to effect change in the local economies throughout Jordan. The
role of the EPC’s will encompass all aspects of support, which may be needed by
entrepreneurs or Small and Medium Enterprises (SMEs).
The client under the full guidance of the field advisors should be urged to become
actively involved, raising issues, addressing them, finding and implementing
solutions to develop viable, sustainable new businesses that have the potential to
employ other Jordanians.

The hands-on function of the EPC program is the principal method of providing
assistance and guidance to the small business community. Through its one-on-one
project development services, the EPC will provide all the required knowledge
needed by the client to plan and start a business and keep the business operating
on a profitable basis.

EPP Structure
The Project implemented by a Project Management Unit (PMU) housed with the
Ministry of Planning (MOP). The PMU is guided by a Steering Committee
headed by the Prime Minister and consists of selected Cabinet members and
business leaders. The structure of the EPP is flat but effective. Each of the
Program Officers is autonomous within his/her own sub-element. Decisions are
made by the Director with reference to the Minister for major contracts. The PMU
consists currently from the unit director, six senior coordinators and eleven
assistants and supporting staff.

A well-designed monitoring and evaluation system (M&E) is critical to ensure the

project’s timely and successful implementation and to enhance its impact through
a systematic analysis of lessons learned and their effective dissemination. The
project’s M&E will be the responsibility of the PMU and Monitoring and
Evaluation Unit (M&E Unit).

The Monitoring and Evaluation Unit (M&E Unit) is a major part of the EPP. It
aims to ensure the optimal performance of the EPP and any its components in
achieving its overall objectives, prompting the desired impact, and guaranteeing
the integration of the various components of Program. The unit implements
monitoring and evaluation on three levels: performance, deliverables and impact.
This is executed through several approaches, quantitative, qualitative and

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participatory, aiming at empowering people through involving all the stakeholders
in the process, thus giving them ownership of the socio-economic development
process, and ensuring its sustainability. The Unit The PMU will design a simple
Management Information System for M&E, reporting formats for each component
and sub-component, including targeted annual performance objectives and
monitoring indicators. Quarterly reports, covering the implementation progress,
the use of funds and the project’s impact, Will be consolidated by the PMU into
yearly progress reports to be submitted directly to the Steering Committee.

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 EPP Framework

Community
Capacity Local
CBO’s
Full-time Government
Capacity
Capacity
Outcome
Businesses Capacity

Projects Projects Projects Output

Local Local Municipalities &

Entrepreneurs CBOs Communities Governorates
Beneficiary

Privet Sector NGOs NGOs Contractor & Governments

Agencies Intermediary

6-EPC (IRADA) 3- Qudorat 1-RCCDP 5-CIP

4- DISG 2-PPP Component/
Activity
Businesses
Theme
Development Integrated Local Development

EPP Program