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
Tuesday, February 6, 2007
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