National Trade Data Bank ITEM ID : ST BNOTES JORDAN DATE : Oct 28, 1994 AGENCY : U.S. DEPARTMENT OF STATE PROGRAM : BACKGROUND NOTES TITLE : Background Notes - JORDAN Source key : ST Program key : ST BNOTES Update sched. : Occasionally Data type : TEXT End year : 1994 Date of record : 19941018 Keywords 3 : Keywords 3 : | JORDAN BACKGROUND NOTES: JORDAN PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS U.S. DEPARTMENT OF STATE AUGUST 1994 Official Name: Hashemite Kingdom of Jordan PROFILE Geography* Area: 89,544 sq. km. (34,573 sq. mi.). Cities: Capital--Amman (pop. 1 million). Other cities-- Irbid (281,000), Az-Zarqa (421,000). ____________ *From 1949 to 1967, Jordan administered that part of former mandate Palestine west of the Jordan River known as the West Bank. Since the 1967 war, when Israel took control of this territory, the United States has considered the West Bank to be territory occupied by Israel. The United States believes that the final status of the West Bank can be determined only through negotiations among the parties concerned on the basis of Security Council Resolutions 242 and 338. People Nationality: Noun and adjective--Jordanian(s). Population (est.): 3.9 million. Religions: Sunni Muslim 95% (est.), Christian 5% (est.). Languages: Arabic (official), English. Education: Literacy (1992)--82%. Health: Infant mortality rate (1992)--37/1,000. Life expectancy (1992)--69 yrs. Ethnic groups: Mostly Arab, but small communities of Circassians, Armenians, and Kurds. Work force (750,000): Government and services--47%. Manufacturing and mining--25%. Trade--16%. Agriculture- -12%. Government Type: Constitutional monarchy. Independence: May 25, 1946. Constitution: January 8, 1952. Branches: Executive--king (chief of state), prime minister (head of government), council of ministers (cabinet). Legislative--bicameral National Assembly (appointed Senate, elected Chamber of Deputies). Judicial--civil, religious, special courts. Political parties: Wide spectrum of parties legalized in 1992. Suffrage: Universal at 19. Administrative subdivisions: Eight governorates--Irbid, al-Mafraq, al-Zarqa, Amman, al-Balqa, al-Karak, al- Tafilah, and Ma'an. Flag: Three horizontal bands of black, white, and green joined at the staff by a red triangle with a white star in the middle. Economy GDP (1993 est.): $5.4 billion. Annual growth rate (1993): 6.2%. Per capita GDP (1993 est.): $1,385. Natural resources: Phosphate, potash. Agriculture: Products--fruits, vegetables, wheat, olive oil. Land--10% arable. Industry (30% of GDP): Types--phosphate mining, manufacturing, and cement and petroleum production. Trade (1993 est.): Exports--$1.2 billion: phosphates, fruits, vegetables. Major markets--Iraq, Saudi Arabia, U.S. Imports--$3.4 billion: machinery, transportation equipment, cereals, petroleum products. Major suppliers- -U.S., Iraq, Japan, U.K., Syria. Official exchange rate (1992): 684 Jordanian dinar=U.S. $1. PEOPLE Jordanians are Arabic except for a few small communities of Circassians, Armenians, and Kurds which have long since adapted to Arab culture. The official language is Arabic, but English is used widely in commerce and government. About 70% of Jordan's population is urban; less than 6% of the rural population is nomadic or seminomadic. Most people live where the rainfall supports agriculture. About 1.5 million Palestinian Arabs--including more than 950,000 registered refugees and displaced persons--reside in Jordan, many as citizens. HISTORY The land that became Jordan is part of the richly historical Fertile Crescent region. Its history began around 2000 B.C., when Semitic Amorites settled around the Jordan River in the area called Canaan. Subsequent invaders and settlers included Hittites, Egyptians, Israelites, Assyrians, Babylonians, Persians, Greeks, Romans, Arab Muslims, Christian Crusaders, Mameluks, Ottoman Turks, and, finally, the British. At the end of World War I, the territory now comprising Israel, Jordan, the West Bank, Gaza, and Jerusalem was awarded to the United Kingdom by the League of Nations as the mandate for Palestine and Transjordan. In 1922, the British divided the mandate, establishing the semiautonomous Emirate of Transjordan--ruled by the Hashemite Prince Abdullah--and continuing the administration of Palestine under a British High Commissioner. The mandate over Transjordan ended on May 22, 1946; on May 25, the country became the independent Hashemite Kingdom of Transjordan. It continued to have a special defense treaty relationship with the United Kingdom until 1957, when the treaty was dissolved by mutual consent. The British mandate over Palestine ended on May 14, 1948, and the State of Israel was proclaimed. Neighboring Arab states, including Transjordan, moved to assist Palestinian nationalists opposed to this development, resulting in open warfare between the Arab states and the newly founded State of Israel. The armistice agreements of April 3, 1949, established armistice demarcation lines between Jordan and Israel, leaving Jordan in control of the West Bank. The agreements expressly provided that the armistice demarcation lines were without prejudice to future territorial settlements or boundary lines. In 1950, the country was renamed the Hashemite Kingdom of Jordan to include those portions of Palestine annexed by King Abdullah. Jordan established three governorates on the West Bank: Nablus, al-Quds (Jerusalem), and al- Khalil. While recognizing Jordanian administration over the West Bank, the United States maintained the position that ultimate sovereignty was subject to future agreement. Jordan signed a mutual defense pact in May 1967 with Egypt, and it participated in the June 1967 war between Israel and the Arab states of Syria, Egypt, and Iraq. After repelling the Arab attack, Israel extended its control to the Jordan River, including Jordanian- controlled eastern Jerusalem. In 1988, Jordan renounced all claims to the West Bank but retained an administrative role pending a final settlement on the West Bank. The U.S. Government considers the West Bank to be territory occupied by Israel and believes that its final status should be determined through direct negotiations among the parties concerned on the basis of UN Security Council Resolutions 242 and 338. The 1967 war led to a dramatic increase in the number of Palestinians living in Jordan. Its Palestinian refugee population--700,000 in 1966--grew by another 300,000 from the West Bank. The period following the 1967 war saw an upsurge in the power and importance of Palestinian resistance elements (fedayeen) in Jordan. Differing with the Jordanian Government's policies, the heavily armed fedayeen constituted a growing threat to the sovereignty and security of the Hashemite state. Tensions between the government and the fedayeen increased until open fighting erupted in June 1970. Other Arab governments attempted to work out a peaceful solution, but by September, continuing fedayeen actions in Jordan--including the destruction of three international airliners hijacked and held in the desert east of Amman--prompted the government to take action to regain control over its territory and population. In the ensuing heavy fighting, a Syrian tank force (camouflaged as a Palestinian force) initially took up positions in northern Jordan to support the fedayeen. By September 22, Arab foreign ministers meeting at Cairo had arranged a cease-fire beginning the following day. Sporadic violence continued, however, until Jordanian forces won a decisive victory over the fedayeen in July 1971, expelling them from the country. Since then, the fedayeen have not presented a threat to the Jordanian Government. No fighting occurred along the 1967 Jordan River cease- fire line during the October 1973 Arab-Israeli war, but Jordan sent a brigade to Syria to fight Israeli units on Syrian territory. Jordan did not participate in the Gulf war of 1990-91. Except for a period of border tension with Syria in 1980, it has been at de facto peace with all its neighbors. In 1991, Jordan agreed, along with Syria, Lebanon, and Palestinian representatives, to participate in direct peace negotiations with Israel sponsored by the U.S. and Russia. GOVERNMENT Jordan is a constitutional monarchy based on the constitution promulgated on January 8, 1952. Executive authority is vested in the king and his council of ministers. The king signs and executes all laws. His veto power may be overridden by a two-thirds vote of both houses of the National Assembly. He appoints and may dismiss all judges by decree, approves amendments to the constitution, declares war, and commands the armed forces. Cabinet decisions, court judgments, and the national currency are issued in his name. The council of ministers, led by a prime minister, is appointed by the king, who may dismiss other cabinet members at the prime minister's request. The cabinet is responsible to the Chamber of Deputies on matters of general policy and can be forced to resign by a two- thirds vote of "no confidence" by that body. Legislative power rests in the bicameral National Assembly. The 80-member Chamber of Deputies, elected by universal suffrage to a four-year term, is subject to dissolution by the king. Of the 80 seats, 71 must go to Muslims and nine to Christians. The 40-member Senate is appointed by the king for an eight-year term. The constitution provides for three categories of courts- -civil, religious, and special. Administratively, Jordan is divided into eight governorates, each headed by a governor appointed by the king. They are the sole authorities for all government departments and development projects in their respective areas. Principal Government Officials Chief of State--King Hussein I Prime Minister, Minister of Defense, Foreign Minister--Dr. Abd Al-Salam Majali Ambassador to the U.S.--Fayez Tarawneh Ambassador to the UN--Adnan Abu Odeh Jordan maintains an embassy in the United States at 3504 International Drive NW, Washington, DC 20008 (tel. 202- 966-2664). POLITICAL CONDITIONS King Hussein has ruled Jordan since 1953 and has survived a number of challenges to his rule, drawing on the loyalty of his military and serving as a symbol of unity and stability for both the East Bank and Palestinian communities in Jordan. In 1989, Jordan held free and fair parliamentary elections in which Muslim Brothers and other Islamists won more than one-third of the 80 seats. Since those elections, King Hussein has shown a commitment to democratization, most importantly by ending martial law in 1991, legalizing political parties in 1992, and holding new parliamentary elections in November 1993. Jordan's continuing structural economic difficulties, burgeoning population, and more open political environment have led to the emergence of a variety of political parties. Moving toward greater independence, parliament has investigated corruption charges against several regime figures and has become the major forum in which differing political views, including that of political Islamists, are expressed. While King Hussein remains the ultimate authority in Jordan, parliament is playing an increasingly important role. Although Jordan in 1988 disengaged from the West Bank and ceased efforts to restore the country's 1948-67 position, it retains considerable influence in the West Bank--for example, regulating the operations of Jordanian banks and issuing limited-validity Jordanian passports to West Bankers. ECONOMY Jordan is a small country with limited natural resources. Just over 10% of its land is arable, and even that is subject to the vagaries of a limited water supply. Rainfall is low and highly variable, and much of Jordan's available ground water is not renewable. Jordan's economic resource base traditionally has centered on phosphates, potash, and their fertilizer derivatives and on overseas remittances. These are its principal sources of hard currency earnings. Lacking forests, coal reserves, hydroelectric power, or commercially viable oil deposits, Jordan relies on natural gas for 10% of its domestic energy needs. For the other 90%, Jordan depends entirely on its oil-producing neighbors. Although the population is highly educated, its high growth rate (3.4%) and relative youth (more than 50% of Jordanians are under 16) will make it difficult for the economy to generate jobs and sustain living standards. Jordan's distance from other markets makes its exports less competitive outside the region, and political disputes among its traditional trading partners (Iraq, Saudi Arabia, and the Gulf states) frequently restrict regional trade and development. Since 1987, Jordan has struggled with a substantial debt burden, lower per capita income, and rising unemployment. From 1988-90, the official cost of living index rose 56%, while the dinar lost 51% of its value against the dollar. In 1989, Jordan concluded an 18-month standby arrangement (SBA) with the IMF and achieved agreement with Paris Club creditors to reschedule $573 million of debt. At the same time, to increase revenues, the government raised prices of certain commodities and utilities, triggering riots in the south. The mood of political discontent that swept the country in the wake of the riots helped set the stage for Jordan's moves toward democratization. The SBA was derailed by economic consequences of the 1990-91 Gulf war. While tourist trade plummeted, the Gulf states' decision to limit economic ties with Jordan deprived it of worker remittances, traditional export markets, a secure supply of oil, and substantial foreign aid revenues. UN sanctions against Iraq-- Jordan's largest pre-war trading partner--caused further hard- ships, including higher shipping costs due to inspections of cargo shipments entering the Gulf of Aqaba. Finally, absorbing up to 300,000 returnees from the Gulf countries exacerbated unemployment and strained the government's ability to provide essential services. In February 1992, Jordan renewed its commitment to pursuing long-term economic growth and entered into another 18-month standby arrangement with the IMF, followed by another Paris Club rescheduling of $771 million. Success in implementing its economic reform program will depend upon how effectively the government can stimulate private enterprise and encourage trade and investment in productive enterprises. In 1992, economic performance was solid: With all IMF targets met by wide margins, Jordan's $4.7-billion economy grew an impressive 11%. Inflation was held to 6.8%, but unemployment persisted at high levels (20%-25%). Although much of the 1992 growth resulted from non-recurring factors--a construction boom and customs receipts generated by Gulf war returnees--Jordan experienced growth of 6.2% in 1993. Further economic reform efforts are likely to be tempered by concerns about effects on low-income voters. With parliament playing a more active role in the formulation of economic policy, it may be difficult to impose further belt-tightening measures. In the near term, Jordan will continue to depend on foreign grants and concessional loans to further its development efforts. While in the past the largest aid flows have come from the Arab states, the United States and other Western countries also have been important sources of development funds. In 1994, Jordan's economy dipped into recession during the first half. Its prospects for growth in the second half improved following Jordan's additional rescheduling of debt with Paris Club creditors, decisions by the U.S. and U.K. to forgive its official debt, and growing confidence as a result of progress in the Middle East peace process. FOREIGN RELATIONS Jordan has consistently followed a pro-Western foreign policy and traditionally has had close relations with the United States and the United Kingdom. These relations were damaged by the popular support in Jordan for Iraq during the Gulf war. Although the Government of Jordan stated its opposition to the Iraqi occupation of Kuwait, popular support for Iraq was driven by Jordan's Palestinian community, which favored Saddam as a champion against Western supporters of Israel. Since the end of the war, Jordan has largely restored its relations with Western countries through its participation in the Middle East peace process and enforcement of UN sanctions against Iraq. Relations between Jordan and the Gulf countries have improved only slightly since the Gulf crisis. Relations with Egypt are better--with the two countries cooperating on the peace process--and relations with Syria also are cooperative on the peace process. Jordan signed a non-belligerency agreement with Israel (the Washington Declaration) in Washington, DC, in July 1994. In bilateral discussions and in Trilateral Economic Committee discussions--which include the U.S.-- key issues are water-sharing and security as well as cooperation on Jordan Rift Valley development; infrastructure projects; and trade, finance, and banking issues. Jordan also participates in the multilateral peace talks. Jordan belongs to the UN and several of its specialized and related agencies, including the Food and Agriculture Organization (FAO), International Atomic Energy Agency (IAEA), and World Health Organization (WHO). Jordan also is a member of the World Bank, International Monetary Fund (IMF), Organization of the Islamic Conference (OIC), INTELSAT, Nonaligned Movement, and Arab League. U.S.-JORDANIAN RELATIONS Relations between the U.S. and Jordan have been close for four decades. A primary objective of U.S. policy, particularly since the end of the Gulf war, has been the achievement of a comprehensive, just, and lasting peace in the Middle East. Jordan's constructive participation in the Madrid peace process is key in achieving peace. U.S. policy seeks to reinforce Jordan's commitment to democratization, stability, and moderation. The peace process and Jordan's opposition to terrorism parallel and indirectly assist wider U.S. interests. Accordingly, through economic and military assistance and through close political cooperation, the United States has helped Jordan maintain its stability and move forward with democratization. Recently, though, a declining U.S. foreign assistance budget has limited its ability to assist Jordan. Since 1952, the United States has provided Jordan with economic assistance totaling more than $1.5 billion, including funds for development projects, health care, support for macro-economic policy shifts toward a more completely free-market system, and both grant and loan acquisition of U.S. agricultural commodities. These programs have been overwhelmingly successful and have contributed to Jordanian stability while strengthening the bilateral relationship. U.S. military assistance-- provision of materiel and training--is designed to meet Jordan's legitimate defense needs, including preservation of border integrity and regional stability. Principal U.S. Officials Ambassador--Wesley W. Egan Deputy Chief of Mission--Robert Beecroft The U.S. embassy in Jordan is located in Abdoun, Amman (tel. 820-101) and is closed on all U.S. federal holidays and some Jordanian holidays. TRAVEL NOTES Passport and visa: A valid Jordanian visa is necessary for entry. Climate and clothing: Although the climate is moderate, seasons vary enough to require a diverse wardrobe. Due to cultural sensitivities, conservative dress is recommended. Health: Good medical and surgical care is available in Amman. Avoid uncooked vegetables and unpasteurized milk. Tapwater is not potable. Telecommunications: Direct-dial, long-distance telephone service is provided to the U.S., Damascus, Cairo, and most European cities. Telegraph service is available. Transportation: Amman is served by several Middle Eastern and European airlines. Taxis are available in Amman; tipping is not customary. Published by the United States Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DC -- August 1994 -- Managing Editor: Peter A. Knecht -- Editor: Marilyn J. Bremner Department of State Publication 7956 -- Background Notes Series For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.