jordan at a glance -...
TRANSCRIPT
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Chapter 2
JORDAN AT A GLANCE
The Hashemite Kingdom of Jordan (Al-mamlakah AI - Urduniay a1-
Hashimiyah ) is a young nation that occupies an ancient land. It
is situated on the banks of the Jordan river. It is bounded to
the east by Iraq, to the north by Syria, to the south-east by
Saudi Arabia and to the west by Israel and the Gulf of Aqaba
the south-west. Jordan has 12 miles of coast line. The area of
the country is 36 / 833 square miles.
Jordan • 15 a developing Arab count ry. It is situated on the
south-eastern shore o f the Mediterranean between longitudes 34°
52' and 39°12' east and latitudes 29°17' and 33°23' north, and
extends eastwards into the Arabian desert.
Jordan • 15 a hilly and arid country. Pract ically a ll of its
cultivated area as w~ll as 90 per cent of the population . IS
concentrated in the north - west which occupies only about 14 per
cent of the area and covers most of the West Bank. That part of
the Bast Bank which extends from the Syrian border southwards to
Hadaba east of this area is the Steppes; but further east and
south lies a desert plateau which is moving gradually eastwards
to the great Sirhan depression and which forms a part of the
Syrian or north Arabian desert. Between the hills of the Wes t
Bank and the mountains and plateau of the East Bank , there lies a
long and deep depression -the rift valley. A large part of it
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Map 2. J
MAP OF JORDAN
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lies below the sea level and is generally dry and very hot 1n
summer. The central part of this depression is occupied by the
Dead Sea which is an inland lake of about 755 square kilometers
whose surface lies 396 meters below the Mediterranean mean sea
level . This happens to be the lowest area in the world.
Sloping gently towards the Dead Sea fr om the north . 15 a
relatively flat but widening land known as the J ordan valley , • 1n
the midst of which the Jordan river meanders in its descend ing
course to meet the Dead Sea. Sloping t owards the Dead Sea fr om
the s outh is the Wadi Aqaba which separates the Gulf of Aqaba
from the land below sea level.
History of Jordan
Since the Arab-Israeli War of June 1967 , Israel has occupied the
territory of the Jordan river , known as the West Bank , including
the Jordanian sector of Jerusalem. The occupied area • 18 about
2,270 sq. miles which forms 6 per cent of Jordan's territory but
one half of its agricultural land. About one - third of J ordan's
population lives in the West Bank.
As a political entity, Jordan came into being after the
termination of World War I, but gained its independence from the
united Kingdom as a hereditary constitutional monarchy only after
World War II in 19(6. In April 1950, national unity came into
being, between what was formerly known as Transjordan and that
part of Palestine known now as the West Bank. The latter part o f
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the Kingdom has been under Israeli occupation since the June 1967
war. King Hussein Ibn Talal ascended the throne in 1952; he
attempted to mdintain Jordan's traditional poli c y of friendship
with the western countries despite strong: l ocal and international
pressures.
The intellectual differences and frustrations that pervade the
Arab world are reflected within Jordan all the more be cause the
country has provided shelter for thousands o f Arab refugees who
had fled from their homes as a result o f the Arab- Israeli wars.
Climate
The climate of Jordan is of dry Mediterranean t ype. Tempera t ures
rarely fall below the freezing point in winter a nd hardly ex c eed
• >n summer. In the highlands and the eastern part ,
temperatures are more extreme, and the Jordan valley has warm but
short winters and very hot , dry and long summers.
The rainy season usually starts in late October and continues
through March or April , with the heaviest rain falling • 1n the
first three months of the year. Rainfall displays marked annual
fluctuations, and follows a five to saven year cycle.
Precipitation in the western and the northern parts is much
greater than that in the eastern and Gouthern parts. Average
rainfall in the former exceeds 400 rom per annum .
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Natural Resources
Only 13 per cent of the land area is cultivable. stringency and
uncertainty of rainfall limits rainfed cultivated area. The
supply of irrigation water , ' IS agaIn a limiting factor f o r
cultivation . At present , only a small fracti on of t he water fr om
the Yarmouk and Zarqa rivers is being utilized f or irrigat i ng
agri cultural land. Underground water is not ye t ful l y e xp lored .
Several minerals of commerc ial value are f ound to ex ist
Jordan. Phosphate roc k and materials f or cement production are
available in great abundance and are being e xploited e xtensively.
Potential l y , however , a major resource i s t he Dead Sea whose
_water contains quantities of potash, magnesIum and bromine.
Other minerals of commercial value inc lude manganese, . ceramlCS,
copper, glass sand, clay and oil shale. Explo r ation for oil In
various locations did not produce positive r esul t s. At present,
Jordan depends for its power on crude oil wh ich 1 5 imported
through pipelines from Saudi Arabia and is refined loca lly .
Of even greater significance are the various holy places and t he
various archaeological sites which attract pilgrims and t ourists
in large numbers. The city of Jerusalem is a holy place to
~eople of several religions and Petra and Jarash are well-known
places of archaeological interest.
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Population
J ordan's population has been growing steadily in the last two
de cades from 0 . 59 million in 1952, to over 0.9 mil l i on i n 1 961 to
ove r 1.5 mi l lion in 197 0, to over 2 .2 milli on i n 1 980 and to 3 , 45
mi llion in 1990 . The approximate rate of inc r ease is about 3 . 1
per c ent per annum. Thi s is the result of a ver y high fert i lity
rate of 6.8 children per woman , a c rude bir th rate of 47 per
1000 and a c rude death rate of about 16 pe r 1000 . The f i rs teve r
census was conduct ed in 196 1 . Due t he i mpact of mi gra tion dur i ng
the 80s the annual growth rate inc re ased t o 4 ,2 per cen t .
Table 2 .1 Population of J ordan by Sex f or Select ed Years
( in ' 000) -----------------------------------------------------------------
Year Hales Females Tota l -----------------------------------------------------------------
1952i 1961 1965 1970 1975
3 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990
301 .7 469.4 534 . 6 784.3 941.5
1115 . 8 1160 . 4 1206. 4 1255 . 1 1305.3 1257.6 1409.1 1462.6 151 5. 3 1569 . 5 1627.0 1777 . 0
284 .5 431. 4 493.4 723. 9 869 . 6
1017.2 105 7. 9 1100.2 1144 .2 1190. 0 1237.5 1284.6 1333. 5 1381. 5 1431. 5 148 4.0 1676.0
586.2 900 . 8
1028. 0 1508. 2 1810 . 5 21 33 . 0 2218.3 2307.0 2399 .3 2495 .3 2595.1 2693. 7 27 96.1 2896 .8 3001. 0 3111 .0 3453 . 0
-----------------------------------------------------------------1. 2.
Housing Statistics, August 1952 Results of the first population November 18, 1961
and hous ing ce nsus o n
3. Results of the housing and 10, 1979.
population cens us o n November
Source: The Hashemite Kingdom of Statistics, Statistical Year
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Jordan , Department Book, No .41 , 1990.
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About 4. per cent of the population lives in urban areas and the
remaining 56 per cent in rural areaSj of this, about 6 per cent
(t he religious fundamentalists) lives In scattered tents
maintaining a separate identify to keep alive the age - old
traditions of the Arabs. Nearly 95 per cent of the population
belongs to the Muslim community and 5 percent follows
Christianity.
For effective administration the entire kingdom of Jordan • lS
divided into eight governorates , Amman being the capital. Nearly
• 42 per cent of total population is concentrated in this regIon,
followed by 23.59 per cent in Irbid and 15.37 per cent in Zarqa .
Eighty- two per cent of the population is concentrated in these
three governorates, resulting an acute shortage of housing
this areas .
Table 2.2
Percentage of Employees by Sector of Activity
-----------------------------------------------------------------Activity 1988 1989 1990 -----------------------------------------------------------------Agriculture Hining and Quarrying Electricity and Water construction Trade Transport Financial Institutions Social and Public Administration
7.6 10.3 1.6
10.0 10.0
9.0 3.4
48.1
7.2 10.4 1.4 9. 7
10.2 8.8 3. 1
49.2
7.3 10.2 1.3 9.9
10.1 8.5 3. 2
49.5
-----------------------------------------------------------------Source
•
: The Hashemite Kingdom of Jordan , Department Statistics, Statistical Year Book, No,41 , 1990.
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Workforce constitutes only 23 per cent of the population. Table
2.2 c lassifies the workforce by major eco nomic activity.
The table shows that nearly 50 per cent of the workforce belongs
to s ocial and public administration i.e. the • serVice sector,
mining , trade and construction as the maj or economic act ivity .
Maj or industries and industrial producti on are almost nil in the
country. Agriculture plays a minor r ole in the economic growth .
This shows a dependence on other countr ies for food and
manufac tured goods. Oil wells and minerals are the main economic
resources in the country . Under these conditi ons well organized
financial intermediaries like commercial banks play an i mportant
role as resources mobilizers in the growth process. While the
rapidly growing population, small domest i c market, limited
natural and capital resourCBs , heavy dependence of agri cultural
ac tivity on rainfall , chronic trade defi cit , reliance on foreign
assistance , infrastructural deficiencies , etc. are drawbacks of
the Jordan economy , the development of the financial sector
through an effic iently planned central banking system is an asset
to the country .
Jordan had to face enormous problems arising out of the events of
1948 which resulted in the Israeli occupation o f a major part of
Palestine. Within a few months, J ordan's popUl a tion tripled
without a commensurate increase in resources. Trade and lines of
communications which previously were direc ted westward to the
Mediterranean coast had to be completely re - r outed. The country
found it necessary to build infrastructural faci lities within a
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very short period. Moreover, government revenues were not
sufficient to meet the fiscal requirements , and the Jordanian
government had , therefore, to depend much on financial assistance
from friendly countries and deficit financing.
Throughout its eXistence , Jordanians had t o depend upon outside
aid . Aid came first fr om the United Kingdom, late r fr om the
United States and • Slnce 1967 from other Wes te r n and Arab
countries , including Saudi Arabia , Kuwait and the Unit ed Arab
Emirates. Between 1954 and 1967 , despi t e population pr essur es,
paucity of natural resources, and i nflux of r ef ugees, J ordan's
gross national product nearly quadrupl ed .
Economic Indicators
The government's planning for utilizing s car ce r esources is do ne
in such a way that their contribution is maximiz ed . In 195 7 t he
Jordan Development Board was reconstituted to be the centra l
agency responsible for the design of the nationa l development
policy.
To make the Jordanian economy selt-reliant, the seven year
programme for economic development (1964-1970 ) was prepared as a
comprehensive economic blueprint which enjoined Jordan to move on
the path of economic independence and self-sustained growth.
Jordan was able to overcome many of the difficulties and problems
by 1966 .
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The Israeli aggression in June 1967 and its aftermath has created
grave economic and social problems f or the people and the
gove rnment . The seizure of the West Bank placed about one-third
of Jo r dan's population under Israeli occupat ion and c rea ted a
gr ave human tragedy involving the influx i nto t he East Bank of
approximately one - fifth of the population for f ea r of Israeli
persecution.
However , with prompt gove r nment action and appropriate
measures , the economy regained i t s ear lier momentum by the second
half of 1968. The emergence of th e internal security problem
Table 2. 3
Selected Economi c I ndicator s (1980 - 1990 ) ( In .1111on JD )
------------------------------------------------------------------------------------------------------You Inc" •• Inco: • Oro •• Honoy
fn. cli- ''''" Don.tic S"pply
r.etly Arvic.. Product ("i ) prodlJ- .. ctora (aark,t
ctlw (factor priCII)
.. etora coat }
(f&etor
coot ,
Honoy
SUpply
,tt" 8.etor fa ci li- public dity
( r •• i - ~xtfndfd
<JQnt} by
licaru;ad ban!<.
dity
------------------------------------------------_.<.--------------------------------------._-----------
1910 H6 . 3 !l42 . 1 979 . , !l94.1 9U.' !l80.6 !!6 3 .9 ~ 16.1 1~0 . 1 716 .0 611.6
1981 416.S 626.1 116'.7 701 . 'I 11'1'.' 7G6.4 711 . 3 309 . ~ 169 . 0 1047.5 666.9
1\182 4!19.3 '110.3 1321. 2 7117.' 1403.3 813.4 887. ~ 36 2 .0 la5.6 1142.5 632 .4
1983 479.6 '162. 'I 1422.7 869.4 1615.2 1035.4 1030. 9 400.0 160. 1 1103.3 729.6
1984 510 . ' 80!!.1 1499.4 8'11.4 1'IS7.7 1169 . 1 1114. 1 411. 7 26 1. 1 1071. 3 740.9
1915 SU.9 8S3.0 1573.3 U8.2 11174.8 1274.4 1274.4 425.5 255. 3 1074.4 781. 4
1\1116 518 . 1 11112 . 5 203'.6 897 . 1 ~072 .• U2S.0 1395.4 st4 . 4 22S.6 850.2 821. 9
1987 560.0 1201.3 2081 . 5 979.11 2372.2 1664 .0 1513 . 0 531. 5 248 .8 915 . ~ 870 .5
19111 613.5 1264.7 2~01.4 1181.3 2659.1 1147 . 3 1634.0 ~ 44 . 4 324 . 8 1022 .5 953 . 7
1989 796.9 1441.1 2540.6 1326.5 2990.2 1919 . 3 1130 . S 565.4 53' .1 1230 . 0 1244.8
1990 11.1. 7 13611.7 2567.4 U3~.1I 3132.0 1956. , 18S3 . 11 746. 1 612 . 3 172!!.!! 1451.8
awarae- ".P 10.51 10.05 ., • !15 11.19 12 . 94 11.77 9.91 14 . .,8 3.80 7. 95
Ala •• 1
GltOiitb a.te
------------------------------------------------------------------------------------------------------IaurCII: c.ntral lank of Jord.an, Arnlal Raport, varioua yaara.
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culminated in the sad events of September 1970. Jordan • 18 now
resolved to fa ce these challenges squarely and is quite confident
that wi th the help of friendly and peace - loving countries. Arab
rights will inevitably be restored. Jordan will, thereupon, be
able t o devote greater efforts to • economIC and social
development.
Table 2.3 gives selected economic indicators f or the period 1 980
to 1990. There is considerable growth in all the indic a to r s .
The least growth rate ( 3.80) is notic ed in commodit y impor ts and
the highest (14.78 ) in commodi t y domestic expor t, which itself
shows a progressive economI C growth. Private s ec tor deposi t s
( resident ) increased at an annual gr owth 12. 94 per cent f ollowed
by money supply (HZ ) at 11.89 per cent and cr edit fa c il i t ie s
extended by licensed banks by 11.77 per cent . Th is I S a cl ear
indication of the economic growth in the financ e sec to r or the
banking system as a whole.
Present Economic Condition
For rapid economic development, the J ordanian gove r nment had
started implementing 5-year, 3-year and 7- year plans f r om 1962 .
The Jordan Development Board was established in 1952 and was
later replaced by the National Planning Council in 1971, The
first five year plan was introduced in 1962 for the period 19 62
to 1967. The seven year programme for economic development
lasted from 1964 to 1970. The three year plan for s ocial 50d
economic development lasted from 1913 to 1975. Then came two five
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year plans - one spanning the period 1980 - 85 and the next five
year development plan from 1986 to 1990, both leading to rapid
economi c development.
(1) Three year development plan (1973 - 1975): The year 1973
witnessed the beginning of a new stage o f • economlc and
social development in Jordan. The three yea r development
plan aimed at achieving a number of goals, mainly to expand
GOP by 8 per cent annually , to reduce the trade deficit from
an annual average of 11.5 per cent for the period 1967- 1971
to 6.3 per cent during the plan period, to bring the balance
of payments to equilibrium and to augment the re liance o f
the budget on domesti c revenues. During this plan period
GNP increased a~ annually at 24.78 per cent and GOP
increased by 19.57 per cent.
(2) The first five year development plan (1976 - 1980): The fi ve
year development plan for the period 19 76- 80 aime d at
furthering the development momentum attained during t he
three year development plan. During this period GNP at
constant • prlces increased by an annual rate of 20.12 per
cent and GDP by 23.09 per cent, a growth rate which no
developing country can even dream to attain. One of the
main objectives of the plan was t o direct an increased
proportion of financial resources towards investment with a
determination to accelerate the process of socio- economic
development. Jordan suffers from an acute s hortage of
housing showing high population density in slum areas • in
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principal cities and a high occupancy ratio per room for low
lncome groups. To improve the situation during this plan
been about 21 per cent of the total investment had
channelised into the housing sector against the proposed 11
pe r cent in the plan.
During 1976-80 about 37,000 new residential building permits
were issued for a total building area of 6.8 billion square
meters. The Housing Corporation and the Jordan Valley
constructed 5221 housin9 units for limited and low i ncome
groups. In addition to this the Housing Bank provided about
JD11a.S million in l oans for hous ing and commercial
buildings for a total estimated area of 3.4 million square
metersi 7428 loans of amount less than JD 400 0, 5205 10an8
of amount between JD 4000 and JD 7000 and 1352 loans of
amount above JD 7000 • were glven to a total of 13985
beneficiaries.
(3) The second five year development plan (1981 - 1985) After
having achieved the desired growth process in GNP in the
first two plans, the development programmes and poli c ies of
the second five year plan (1981-85) aimed at a qua l itative
change in the growth process. The annual growth rate of GNP
and GOP got stabilized at 5.96 per cent and 7.99 per cent
respectively, comparable to the growth in any developing
economy. The plan called for the establishment o f
appropriate institutions and systems to improve technol ogy
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and information and thereby to strengthen the productive
c apac ity and infrastructure of the national economy.
Cr edit fac ilities extended by the commercial banks and
spec ialized crodit institutions regiatered a great inc rease
during t his period. While framing the polic i es on housing
act ivity one of the goals was to encourag e the private
s ect or i n residenti a l build i ngs and mobil iz e • savl ngs for
t h is purpose , As a resul t, among the sources of financing
hous i ng proj ec ts , the share of t he pr ivate and mi xed sector
in housing proj ects inc reased f r om 31.85 per cent in 1981 to
73.21 per cent in 198 5.
( 4) The third five year development plan (1986- 1990): The plan
had t aken into consideration new dimensions ln i ts
f ormula t i on. The pr i mary priorities of th e third five year
plan were introduction of reg io na l planning, expanding
popular partic ipation in the implementation of its goals,
and regulating t he f ollow- up process. The new dimensions
had an important bearing on the mac r o, sectoral, and
regi onal goals of the plan. On t he macr o l eve l, the plan
called for increasing GDP at an annual growth rate of 5.0
per cent.
Within the framework of these macro goals, the s ec t ora l plans
have endeavoured to affect a structural economic changes • ln
favour of commodity producing sectors. On the regional l evel,
the plan aimB at realizing a balanced overall development of a ll
economic and social sectors in various regions .
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