Expanding Economic Development to Rural Areas in Jordan and Palestine (JO&PS) One of the main objectives for JO&PS today is to ensure the expansion of economic development to rural areas. Agriculture holds a significant share of employment, emphasizing its importance in rural communities. Despite notable progress in economic development and poverty reduction over the last decade, regional disparities continue to persist in JO&PS. Farming is economically important, despite its small share of Gross Domestic Product (GDP), as it is a major source of food and a major source of hard currencies gained from exports. Approximately 25% of Jordan’s total poor rely on agriculture. In 2011 the contribution of agriculture to GDP was 4%, a sharp decline from 40% in the 1950s. However, the contribution in absolute terms has increased, from JOD (Jordanian Dinar) 32 million in the 1950s to JOD 560 million in 2010. In 2011, the sector employed 124,000 people, which is 2.1% of the total population and 7.7% of the total labour force. On the other hand, the importance of Palestinian agriculture arises from its ability to boost the Palestinian economy, as agriculture contributes 4.6% of the gross domestic product, and contributes 15% of the total exports of Palestine to countries abroad. In addition, agriculture will contribute to the employment of Palestinian labour. The percentage of agricultural employment is about 13%, and therefore agriculture is a source of Palestinian income, a food source, and a source of support for food security. This is in addition to the ability of agriculture to achieve a high rate of self-sufficiency, as well as develop other sectors. Jordan is a food deficit country and is among the seven most vulnerable countries to the impact of high food prices. With most agricultural products, namely fruits and vegetables, being consumed locally, the sector is affected by the scarcity of irrigation water and the overuse of groundwater (an acute water crisis). The competitiveness of the Agri-Food sector is challenged by poor access to technology and financing, high input prices, unfavourable tax policies, and over-reliance on public service providers. The budget of the Ministry of Agriculture has recently revised spending patterns, as there has been a 46% increase in salaries and administrative costs, paid for with a 27% decrease in investment.