Iraq War has Refugees Pouring into Jordan

The U.S. occupation of Iraq has caused many Iraqis to flee the country, with many refugees going to neighboring Jordan. Although exact numbers are not available, some estimates of the number of Iraqi refugees in Jordan are as high as 800,000. The true significance of that figure becomes clearer when one considers Jordan's small population of just about 6 million prior to the influx of Iraqis and the fact that Amman's population has risen by an astronomical thirty percent in the past three years-largely due to the Iraqi immigration.

Generally speaking, Jordanians are more than happy to accept their "Iraqi brethren" and have "no problem in sharing their daily bread with them." However, as this article from the BBC discusses, the current situation in Jordan is not so simple. Most of the Iraqi's entering Jordanians are relatively wealthy individuals, having accumulated considerable capital prior to the invasion. This sudden increase in the number of people of substantial means has had very negative effects for the Jordanian economy, particularly for consumers. Now, Jordanians are forced to compete with upper-class Iraqis for apartments and land, which are more expensive due to the sudden increase in demand. Now, many Jordanians "are beginning to sense a kind of patronizing arrogance among some Iraqis due to their financial status." These growing negative feelings are, of course, intensified by the fact that the addition of so many Iraqis to the Jordanian population is having a real and noticeable effect on the purchasing power of native Jordanians.

Fortunately, these economic effects seem to be the only way that the refugees are harming Jordan. As of now, there has been no real reason to believe that the Iraqi immigrants represent a direct threat to Jordanian security. A final problem, which at this point is still largely unrealized, is the potential ethnic/religious conflict that could arise from the drastic increase in Jordan's Shii population, as is briefly mentioned in this article. At this point, however, religious conflict has not presented Jordanians with a major problem, and the issue at the core of the debate remains economic in nature. Currently, Jordanians are torn between their obligation to their neighbors and their understanding of the fact that, the more Iraqis Jordan admits, the more it will cost to live in Jordan.

Embracing Free Trade and Accepting Peace with Israel Greatly Benefit Jordan

Despite the potentially economically devastating violence and chaos plaguing its neighboring countries, namely the recent conflict between Israel and Hezbollah and the US occupation of Iraq, Jordan has managed to continue almost unabated in its process of development. The Kingdom's willingness and ability to maintain relatively cordial relations with Israel since the mid 1990s was rewarded in 2000 with the signing of a free trade agreement with the US, making Jordan a member of the very small and privileged group of countries with free access to the tantalizingly tremendous US market.

Ever since, foreign investment, along with the growth of the Jordanian economy, has continued to increase. The creation of several qualified industrial zones (QIZs) have benefited Jordan immensely; they have attracted at least $800 million in foreign investment and it has been claimed that the QIZs created 19,000 jobs for Jordanians. Thanks to the absence of trade regulations between the US and Jordan, the Hashemite Kingdom can actually compete in the garment industry with countries such as China, and it appears that foreign investment in Jordan will continue to expand, increasing its growth and creating new jobs. In addition to the obvious economic benefits, many firms operating within the QIZs cooperate directly with Israelis, which could potentially lead to increased understanding and political cooperation and further the peace process. At the moment, it appears that Jordan is on the right track to economic growth and development.

Jordan on fast track to Nowtown

What Jordan lacks in population (a mere 6,000,000 people), size (according to the CIA Factbook, Jordan's about as big as Indiana), and other crucial resources including water, oil (What? An Arab country with no oil?), and virtually everything else, it makes up for with a government that is truly committed to the eradication of poverty through the expansion of trade. This September 10 BBC article discusses the tremendous leaps Jordan has recently made in its effort to stimulate economic growth.

Jordan's improvements have mainly been thanks to an increase in exports. From 2000 to 2005, Jordan's exports increased by 116%. The growth came in part from a large increase in exports to its fellow Arab countries, as well as from small increases to European and Asian countries. However, the huge jump in exports is mostly due to an astounding 15-fold increase in Jordanian exports to the country's new-found best friend, the United States. In 2005, Jordanian exports to the US totaled an impressive $1.3 billion, up from only $13 million in 1999. Now, the US has become one of Jordan's biggest trading partners, second only to Saudi Arabia. However, trade between Jordan and the US is still not entirely free. The US government currently imposes tariffs of 25-30 percent on "Jordanian ready-made garments," which make up the majority of Jordan's exports. But if things continue as planned, the restrictions on trade will continue to diminish, as the US government has promised to phase out tariffs until 2011, when they are scheduled to be entirely eliminated. True, Jordan faces many obstacles in its long journey to economic prosperity. However, as Jordan increases its exports to the world's most lucrative market, it certainly appears to be on the right track

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