Ministry of Planning and International Cooperation, UNDP and Abu- Ghazaleh Launch a Study on the Indirect Impact of the Syrian Refugee Crisis on the Jordanian Economy

Ministry of Planning and International Cooperation, UNDP and Abu- Ghazaleh Launch a Study on the Indirect Impact of the Syrian Refugee Crisis on the Jordanian Economy

 

AMMAN - The Ministry of Planning and International Cooperation launched a study on the “Indirect Impact of the Syrian Refugee Crisis on the Jordanian Economy” funded by the United Nations Development Programme UNDP, and prepared by Talal Abu-Ghazaleh & Co. Consulting (Tag-Consult).

 

The results of the study were presented during the launch, which included the analysis of the indirect impact of the Syrian Refugee Crisis in Jordan since 2011 until present, and the total indirect economic impact of the crisis on the Jordanian economy for the years 2014 and 2015 - that amounted to almost 5.78 billion US dollars in costs.

 

The study also showed that the rate of increase between 2014 and 2015 was around 38% − and through application of this percentage for the year 2013 (negatively) and for the year 2016 (positively).  The total impact for the period from 2013 to 2016 is approximately 12.37 billion dollars.

 

HE Engineer Imad N. Fakhouri, Minister of Planning and International Cooperation stated that the timing of the study is very significant as it coincides with the UN General Assembly meetings and the Conference related to displacement, so it will be one of the tools which Jordan will be armed with to demand international support.

 

At the same time, the Minister urged the international Community to compensate Jordan for the hardships it endures on behalf of the international community.

He underlines the significance of this study in calculating the indirect expenses endured by the Government because of the crisis indicating that the Government is scientifically and statistically attempting and in partnership with UN organizations and international agencies to document the international needs, the needs of the hosting communities and the Treasury to ask for support to alleviate the effect of the crisis that might go on and on.

 

Fakhouri said that the Government is working relentlessly on developing its response plans to the Syrian Crisis to be presented to the international community.

 

HE Mr. Edward Kollon, the UN Humanitarian Coordinator indicated: “Since the start of the crisis, UNDP advocated the need to addressing Jordanian host communities, in addition to refugees in the country. UNDP launched in 2012 a multi-donor programme to support host communities and refugees in Jordan focusing on the national and northern governorates of Irbid, Mafraq and Zarqa, with an inter-disciplinary package of support focusing on strengthening livelihoods and municipal services delivery.

The programme, totaling more than USD 70m and supporting more than 3 m residents, was successful in fostering social cohesion while innovating for results.

 

Dr. Abu-Ghazaleh indicated, “This study includes all the indirect impacts of Syrian Refugees on the Jordanian economy.” He pointed out, “According to the Geneva Declaration in 2008, the indirect costs refer to lost resources and opportunities resulting from armed violence− and this requires compensation from people and institutions.” 

 

Dr. Abu-Ghazaleh said, “This study does not include the impact of direct costs that are usually of interest to donor countries, although impact of the indirect costs is as equally important.” He added, “The study also does not include the impact of Social Security and the economic effects that result from it.”