1. SMEs Financing and Loan Guarantees 24-25 November, Amman, Jordan Coordination of Assistance to SMEs: National and International Dr. Sherwood McGinnis Financial Services Volunteer Corps

2. Coordination of Assistance to SMEs – Outline of Presentation Better coordination of donor and public and private sector efforts is needed – the reasons why Experience from previous assistance programs Current examples from the SME field A new framework Recommendations

3. Better coordination of donor and public and private sector efforts needed Why is coordination a requirement? Avoids duplication of effort Provides a focused plan of action (cannot “let a thousand flowers bloom”) Enhances management of the overall effort Makes best use of limited resources

4. Experience from previous assistance programs Bosnia reconstruction – building the road to Goradze in order to preserve the peace Afghanistan Rule of Law – the Interagency Planning and Implementation Team (IPIT): an interagency, inter-governmental body coordinating rule of law efforts throughout Afghanistan, across a range of issues (judges, prosecutors, prisons, justice centers, law schools, Ministries of Justice and Interior, corrections, investigators, UN, EU, US, Canada, UK)

5. Current Examples from the SME field Over the past 20 years a number of studies have been undertaken and programs have been initiated – examples include: SME financing – JLGC, JLGF, EBRD, Ahli Bank, EU – Deauville, USAID (part of JLGF) Registration and Licensing – FSVC, WB, IFC Assisting MSMEs – USAID LENS and JCP, EU programs, other individual donors, private sector – including Jordan Strategy Forum and the Jordan Chamber of Industry

6. SME-related programs in Jordan Sharaka program – UK, JEDCO/MOPIC, Business Development Council JEDCO programs – supported by the EU Small business support (SBS) – EBRD Local Enterprise Facility – EBRD Local Enterprise Support Activity (LENS) - USAID Jordan Competitiveness Program (JCP) - USAID Jordan Loan Guarantee Facility - OPIC and USAID Jordan Loan Guarantee Corporation - GOJ FSVC’s grant to address obstacles/hindrances for SMEs - MEPI/U.S. State Department ACRLI bankruptcy/dissolution - MEPI/U.S. Department of State JICA Human Resource Development and Social Infrastructure Improvement - Japan Assistance to SMEs (licensing and inspection, good corporate governance) – Ahli Bank/Central Bank of Jordan/IFC/CGAP Micro, Small and Medium Enterprise Technical Assistance Facility – World Bank/IFC/Canada/DFATD Micro financing - FINCA

7. SME-related programs in Jordan Private Sector Development in the Southern Mediterranean - EU/ENPI Strengthening Microfinance Sector in the MENA Region – GIZ/Germany Development and Employment Fund – Islamic Development Bank/Jordan River Foundation Economic and Social Productivity Programs Unit (ESPP) – MOPIC Noor Al Hussein Foundation (Jordan Micro Credit – Tamweelcom; Capacity Building and Business Services Development; Community Development Program; Local Development Program for Less Privileged Areas – GOJ Mitigating Impact of Syrian Refugee Crisis on host communities – UNDP/JICA Youth Employment Generation in Arab Transition countries – UNDP Women’s economic empowerment - UN Women Aqaba – community and economic development – USAID Jordan Fiscal Reform – MOPIC/Ministry of Finance/USAID Jordan Civic Engagement Project (CEP) – USAID Jordan Tourism Program – USAID Jordan Emergency Services and Social Resilience Program – World Bank Municipal local economic development (Zarqa, Mafraq, Karak, Tafelah) – World Bank/RLDP

8. A new framework for SME Coordination An SME coordinating body below the current UNCT and UNDAF/NRP level: members of this body would meet on a regular basis to set priorities, share best practices, identify areas of duplication, etc. The body would be co-chaired by MOPIC or MIT as well as a UN rep (UNDP), a donor rep (UK, USAID, EU) and the private sector (Jordan Chamber of Industry). Other representatives from the Jordan Strategy Forum, the Business Development Council, relevant ministries and departments, the Parliament, business associations, international financial institutions, national donors, and NGOs would be included. A secretariat would be established to coordinate meetings and provide current, updated information to members of the coordinating body.

9. Summary - Recommendations The following actions should be implemented as part of a coordinated framework for enhancing the role and success of SMEs in Jordan: Establish a joint coordination lead (GOJ, donors, and the private sector) Identify each of the pertinent players Schedule regular meetings to set priorities and an agreed game plan/strategy Establish a mechanism to share information on what each party is doing, thus ensuring no duplication of effort – this data should be regularly updated Establish a committee/WG to interact with GOJ and parliament on regulations and legislation