Jordan

How the Suspension of UNRWA Funding Threatens the Jordanian Economy

How the Suspension of UNRWA Funding Threatens the Jordanian Economy

Olaf Becker, the Director of UNRWA affairs in Jordan, warned on Tuesday that the already struggling economy of the kingdom will face tougher times if some donors continue to suspend funding for the agency, which will force it to halt or reduce its services. He added, "The current suspension of funding jeopardizes the continuation of these services after the end of February. It will have severe consequences for UNRWA operations."

UNRWA, which provides healthcare, education, and other services, has been in crisis since Israel claimed that 12 out of its 13,000 staff in Gaza were linked to the attack led by the Palestinian Islamic Resistance Movement (Hamas) on Israel on October 7, which subsequently triggered the current war in Gaza. Those allegations prompted major donors to suspend funding.

Jordan hosts 2.4 million Palestinian refugees, the largest number of such refugees among Israel's neighbors. Additionally, many Jordanian citizens are of Palestinian origin. Becker stated that Jordan is already providing services in infrastructure and other areas worth one billion dollars to ten Palestinian camps throughout the kingdom, where the agency manages schools and healthcare services for around 400,000 people.

Becker added that UNRWA is already supporting the economy by paying salaries to 7,000 of its staff, making it one of the largest employers in the kingdom, injecting over 120 million dollars in salaries into the economy annually. He noted that the agency's services support more than one million Palestinian refugees in the kingdom at an average cost 20% less than the state in providing similar services.

He concluded, "Our first option is to reduce our services, and it may require different patterns, but it's very difficult; what do you choose, healthcare versus education or sanitation?"

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