1.2.4 Poverty and Disadvantaged Community Jordan has developed a wide-reaching and robust social safety, which has resulted in significant and important gains in reducing poverty and creating a more equal society over the past decade. The percentage of the population living in poverty has fallen from over 21% in 1997 to 14% in 2010 (the last year for which comprehensive national data is available), Nevertheless, poverty remains a national challenge and is more pronounced the furthera governorate is located from Amman. If relatively large governorates like Zarqa, Amman and Irbid are excluded, the average poverty level rises to 20%. This shows that despite achieving gains at the national level, reducing the disparities between governorates continues to be an important policy priority for the next decade. Furthermore, a significant percentage of the population are struggling just above the official poverty line, underlining the importance of focusing on the development of lower-middle income groups to keep these groups from falling under the poverty line. 1.2.5 Cost of Living The government's attention and priorities have focused for decades on the expenditure side of the household budget ledger, including alleviating cost of living pressures through various direct and indirect subsidies. Social welfare spending, defined as total spending on direct and indirect subsidies for the poor, such as commodity subsidies and supporting health and education sectors, has increased in recent years. Social spending is estimated at about JD two billion annually, or 8.4% of GDP and 23.7% of the general budget for 2013. ‘The reasons for increased social spending are: + First, the increased demand for direct and indirect subsidies as a result of population growth and refugee crises faced by Jordan. * Second, pension spend has increased to 12% of the national budget and is expected to more than double within 10 years. hird, subsidies on electricity production, transmission and generation have increased significantly in order to help contain the cost of electricity to households and certain sectors. Financial assistance to the National Electric Power Company (NEPCO) and Water Authority of Jordan (WAJ) and their subsidiaries was estimated at 4.8% and 0.8% of GDP for 2014 respectively. While this has clearly helped to contain price increases, it has stretched the nation’s finances and created a welfare dependence among many Jordanian families as they try to manage the rising cost of living in an environment in which the income side of their household ledger has not made sufficient gains. Jordan's hard-fought gains in tackling poverty and inequality over the past decade remain fragile and at risk of being reversed unless we continueto support the poor and underprivileged. But the methods and approach we take to providing that support must change. It is not feasible to maintain the current levels of social spending as a share of GDP over the next decade given our budget pressures today and our expanding population in the years to come. The social support we can provide must be better targeted on those who are genuinely in need and we must help Jordanian families respond to cost of living concerns by expanding their income earning potential through employment rather than providing general subsidies to offset price increases. 1.2.6 Housing and Neighborhoods Finding and securing decent housing remains a source of concern for many Jordanian families. Home ownership in Jordan is low by international standards, and real estate prices have risen dramatically over the past decade in many parts of the Kingdom driven by a sharp rise in land prices and the pressure on housing supply created by successive waves of refugee migration to Jordai the majority of housing units today are not affordable for the majority of Jordanian fami now a surplus of high-end housing and a lack of supply of affordable housing for low and middle-income families despite clear market need at that level. Multi-family households and overcrowding are now increasingly common as 25% of households include one sleeping room and 44% have two sleeping rooms. Average household size is 5.4 with over 40% of urban households. 47% of rural households have 6+ people in one dwelling. International research also highlights that inadequate and overcrowded housing leads to worst health outcomes due to lower hygiene and poorer educational outcomes for children, especially in poor areas. Given the significance of housing as an issue for families, a clear and integrated national housing policy needs to be developed. Neighborhood and community safety is also an important issue for families and communities, and a vital factor for maintaining the confidence of local businesses and foreign tourists alike. One of Jordan’s great strengths is its comparative advantage as a safe and tolerant society in the middle ofa troubled and volatile region. Jordan is considered by the international community to be a relatively stable society, providing citizens with a general sense of safety in public spaces, and making Jordan 8 more attractive location for foreign direct investment, particularly in comparison to other countries in the region.