Country assistance strategy 2006-2010. This Country Assistance Strategy (CAS) sets a four year program to help Jordan meet its key development challenges of reducing poverty and creating jobs while maintaining fiscal stability and development sustainability. Jordan's economy performed well over the past five years with a growth rate of 5-7 percent in spite of regional uncertainties and a poor resource base. This growth has been broad-based supported by exports and manufacturing expansion. Jordan has also performed well in terms of human development education health and in closing the gender gap in accessing basic services. In governance Jordan has outpaced most countries in the region though further improvements are needed. Comprehensive structural reforms over the last decade have underpinned the good economic performance and this process of structural reforms has been accompanied by a painful but effective fiscal consolidation that has steadily reduced government debt from above 200 percent of GDP in the early 1990s to around 82.2 percent at year-end 2005. The past three CASs have focused on these reforms. This Country Assistance Strategy in support of the National Agenda objectives aims at tangible progress in poverty reduction and job creation while assisting the country in its transition through medium-term economic shocks. This CAS is based on four main pillars: 1) strengthening the investment environment for a skill-intensive and knowledge-based economy; 2) supporting local development through increased access to services and economic opportunities; 3) reforming social protection and expanding inclusion; and 4) restructuring public expenditures and supporting public sector reform. This CAS blends policy lending investment lending and analytical services reflecting the emerging needs with respect to short-term financial challenges and longer-term institutional developments with a lending ceiling of up to US$540 million over four years. The total CAS envelope for IBRD lending is US$440 million in the base case US$175 million in the low case and reaching US$540 million in the high case.