The U.S.-Middle East Partnership Initiative: Promoting Economic Growth

The U.S.-Middle East Partnership Initiative (MEPI) seeks to bridge the "jobs gap" by promoting economic reform and private sector development. The MEPI will work in partnership with governments in the region to build programs that enhance the region's competitiveness, encourage investment, and facilitate the growth of private business enterprises. Through implementation of the programs highlighted, including the Partnership for Financial Excellence, the Middle East Entrepreneur Training, the Commercial Law Initiative, and the Middle East Finance Corporation, the Initiative will focus on creating the necessary framework for a market-driven, private sector-led economy. This in turn will create the enterprises and jobs necessary to sustain economic growth and development.

To promote economic growth, the MEPI builds on $7.9 million in funding for pilot projects initiated with FY 2002 emergency supplemental funding and $34.5 million in FY 2003 emergency supplemental funding. For FY 2004, the President requested $54.5 million for these programs.

Promoting Development Through Trade

The creation of a U.S. Middle East Free Trade Area will stimulate economic growth and create jobs by opening up new markets for the region and expanding existing ones. The Administration will use MEPI funds to provide assistance and advice to help countries make the changes necessary for World Trade Organization (WTO) accession and even compliance, an essential first step toward a free trade agreement. We will provide assistance to build trade capacity through programs such as developing business associations, expanding ties, and building markets for businesses in Jordan and those in the United States.

Providing Access to Capital

The Middle East Finance Corporation (MEFC) will promote job creation by making investments in private sector small- and medium-sized enterprises. The initial target size of the MEFC will be $100 million. The United States will fund $50 million and seek another $50 million from regional co-investors post-launch.

Promoting Competitiveness

The Partnership for Financial Excellence (PFE) will accelerate employment growth in the Middle East by promoting greater competition, independence of state control, efficiency, and completeness and integration of the individual financial markets in the region. Some of the types of programs we will fund include:

The Commercial Law Initiative, which builds on the work of the Department of Commerce's Commercial Law Development Program to reform commercial codes, will improve the climate for trade and investment and strengthen the property rights framework. This new effort, funded by the MEPI, will expand the program in cooperation with U.S. and Middle Eastern law schools and jurists. In addition, the Initiative will fund programs to promote transparency and help countries fight corruption.

The Middle East Executive Training ("MEET U.S.") program promotes entrepreneurship and small business development in the Arab world. Working in partnership with the U.S. Department of Commerce's International Trade Administration, the Department has launched a pilot program with group training projects. The first group-training program in June 2003 provided basic business skills training to female entrepreneurs and managers/owners of small businesses in the Middle East and North Africa.