FACTSHEETWORLD BANK SUPPORT TO JORDAN’SNATIONAL AID FUND (NAF) CASH TRANSFER PROGRAM
The World Bank’s support to Jordan’s National Aid Fund Cash Transfer Program has helped the Government ofJordan expand the coverage and increase the effectiveness of its social safety nets, which has provided a lifelineof cash support to the poorest, most vulnerable households. Jordan’s cash transfer program is now the largest
such program in the Middle East and North Africa Region (MENA) in terms of coverage of the poorest people. It
is a recognized best practice model for the reforms it has implemented to modernize, digitize, and increase thetransparency of its cash transfer program.

EXPANSION OF COVERAGE & COST EFFECTIVENESS
Between 2019 and 2023, with support from the World Bank and other international partners, the Government ofJordan (GoJ) has more than doubled the budget of the National Aid Fund (NAF) cash transfer program from JOD100
million to JOD240 million (0.7 percent of GDP). The coverage of NAF’s monthly support increased from 97,000
households in 2018 to 220,000 households in 2023. Jordan’s cash transfer program is now the largest program interms of coverage of the poorest in the Middle East and North Africa Region (MENA).
The NAF program was pivotal in delivering emergency cash transfers in response to the impacts of COVID-19
crisis on poor and vulnerable households. The GOJ launched ‘Takaful 2- support to daily workers emergency cashtransfer’ in the first half of 2020, providing 3-months of emergency cash transfers to 237,000 households relying
on informal income that had become poor. In December 2020, the GoJ launched ‘Takaful 3 - support to daily workers
emergency cash transfer’, providing emergency cash transfers to 160,000 households over 12 months.
According to World Bank analysis, Jordan’s Unified Cash Transfer program (UCT) is the most redistributive andcost-effective item in Jordan’s budget. Statistical analysis show that -in 2021- the UCT is estimated to have
reduced inequality by 0.7 percentage points and poverty by 1.4 percentage points—the highest redistributive
impact of any program in the GoJ’s budget. It is also the program with the highest impact per JOD spent.

ACCESS, DIGITIZATION, & TRANSPARENCYIn addition to increased coverage, NAF has built a state-of-the-art platform to deliver the UCT program. The
automated platform eliminates human decision in the calculation of the eligibility score, which ensures atransparent and objective process. The eligibility score is automatically calculated based on administrative data
available within the National Unified Registry. The score and reasons for exclusion are available to applicants, toensure full access to information, and all applicants have the right to submit a complaint if they feel that theirdata was incorrect, in which case NAF verifies and makes any required corrections. Through the platform, NAF
uses digital technologies to automate processes, including for online registration, enrollment, data verification,
selection of households for field verification, as well as for conducting face-to-face and virtual home visits.
Additional support is provided to anyone who faces challenges in accessing the system. To ensure equitable
access, households can also register with assistance, either in-person at NAF offices or through the phone. NAF
also provides support through mobile teams to elderly, people with disabilities or others that do not have access toregistration centers. NAF operates a call center and an online grievance system, where complaints and grievances
are received, documented on the information system, resolved, and feedback is provided to complainants.
The program also introduced digital payment to beneficiaries through basic bank accounts and e-wallets. The
introduction of digitized payments has minimized errors, improved access to payments, and increased financialinclusion. The NAF program was the main driver behind establishing basic bank accounts by the Central Bank ofJordan to support poor households.

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FACTSHEETWORLD BANK SUPPORT TO JORDAN’SNATIONAL AID FUND (NAF) CASH TRANSFER PROGRAMTARGETING
The World Bank has collaborated with the GoJ to strengthen the NAF and enhance its effectiveness in addressing
poverty and social protection challenges. Through various programs, the World Bank, together with otherinternational partners, has supported the NAF in expanding its coverage, improving targeting mechanisms, andenhancing its overall operational capacity. The targeting formula adopted under the program was developed bythe GoJ and has undergone multiple rounds of revisions and improvements based on evidence-based assessmentsof its performance. The World Bank has worked closely with the GoJ to design and implement reforms to the social
protection system, including the NAF, with the aim of ensuring that resources reach those who need them most.

WORLD BANK SOCIAL PROTECTION STRATEGY
The World Bank recognizes that the progressive realization of Universal Social Protection, which ensures access tosocial protection for all whenever and however they need it, is critical for effectively reducing poverty and boosting
shared prosperity. Please see for more information our latest strategy update which provides a guide to ourengagement with countries to learn the lessons from the COVID-19 pandemic, and importantly, to progressively
build universal social protection systems that better protect and support people in the future.
The World Bank has also recently published a MENA Social Protection Report: Built to Include: Reimagining Social
Protection Systems in the Middle East and North Africa which proposes a series of actions that governments in
the region can take to make social protection systems more inclusive and efficient. Jordan is highlighted for thereforms it has implemented to modernize, digitize, and make more transparent its cash transfer program.

OVERVIEW OF WORLD BANK EMERGENCY COVID-19 RESPONSE CASH
TRANSFER PROJECT
Project Development
Objective

To provide cash support to poor and vulnerable households and workers
affected by the COVID-19 pandemic in Jordan.

Allocated Budget

Parent Project: US$350 million (IBRD Loan) + US$24.17 million (grant)
First Additional Financing: US$290 million (IBRD Loan)
Second Additional Financing: US$350 (IBRD Loan)
Total: US$1,014.17 million

Project Duration

Approval date: 25-06-2020
Closing date: 31-12-2024
Component 1:Cash support to poor and vulnerable households affected by the COVID-19
crisis (US$815.450 million); Implemented by the National Aid Fund (NAF)
Subcomponent 1.1:
Temporary cash transfers to poor and vulnerable households affectedby COVID-19 pandemic. This subcomponent supported 262,653 unique
households with emergency CTs in 2020 and 2021.

Project Components

Subcomponent 1.2: Takaful Cash Transfer Program
Progress to Date: 120,276 households are benefiting from the regular cashtransfer program in 2022. The number of households supported in 2021 was
89,084 and 49,099 in 2020.
Component 2:
Project Management, Monitoring and Evaluation (US$3 million). This
component supports the establishment of the Project Management Unit andinvestment required by NAF to implement the program across Jordan.
Component 3:
Support to workers in firms affected by the COVID-19 crisis (US$193.245million); Implemented by the Social Security Corporation (SSC).
Progress to Date: 109,327 workers have benefited from wage subsidies.
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