Jordan
For most of its history since independence from British administration in 1946, Jordan was ruled by King HUSSEIN (1953-1999). A pragmatic ruler, he successfully navigated competing pressures from the major powers (US, USSR, and UK), various Arab states, Israel, and a large internal Palestinian population, through several wars and coup attempts. In 1989 he resumed parliamentary elections and gradually permitted political liberalization; in 1994 a formal peace treaty was signed with Israel.
The recent military action by U.S. and British forces in Iraq have raised the prospect that individuals or organizations could carry out terror attacks against western interests or personnel. On April 10, 2003 a lone gunman reportedly wounded an American Embassy employee in Amman. Residents and visitors should exercise caution and take prudent measures to maintain their security. These measures include being vigilantly aware of surroundings, avoiding crowds and demonstrations, keeping a low profile, varying times and routes for all travel, and ensuring travel documents are current.
Visitors should maintain a low profile, vary routes and times for all required travel, and treat mail and packages from unfamiliar sources with suspicion. In addition, visitors should avoid contact with any suspicious, unfamiliar objects, and to report the presence of the objects to local authorities. Vehicles should not be left unattended, if at all possible, and should be kept locked at all times.
Jordan has eagerly joined the U.S.-led war on terrorism, sharing intelligence information with the United States on militant groups in the Arab world. It also has foiled several alleged terrorist plots and prosecuted suspects with alleged ties to al-Qaida.
Nevertheless, in October 2002, a gunman shot and killed an American diplomat while he walked to his car the capital Amman. A little-known group, calling itself Shurafaa' al-Urdun, or the Honorables of Jordan, issued a statement saying the diplomat was killed to protest U.S. support for Israel and the "bloodshed in Iraq and Afghanistan." Jordanian authorities stepped up security in the wake of the assassination, which was the first killing of an American diplomat in Jordan in decades.
Jordan came under increasing domestic and Arab public pressure to sever ties with Israel because of the Israeli West Bank and Gaza offensives in 2002. Jordan signed a peace treaty with Israel in 1994.
Jordan underwent a major leadership transition, with the Hashemite monarchy passing from King Hussein bin Talal, who had ruled Jordan for 46 years, to his oldest son Abdallah in late 1999. King Hussein had changed the line of succession in January, replacing his brother Hassan, who had been named Crown Prince in 1965, with the 37-year-old Abdallah, at the time head of the Jordanian military's special forces. Shortly after taking office, the new king appointed Abdel Raouf Rawabdeh as his new Prime Minister.
Despite tensions in the Middle East, Jordan's economy has been experiencing strong growth. Real gross domestic product (GDP) grew at 4.0% in 2001, and 4.2% year-on-year for the first quarter of 2002. Much of the recent growth stems from expansion in the country's manufacturing sector. This has been driven in part by a U.S.-Jordan Free Trade Area agreement, which was ratified in September 2001. Exports from Jordan to the United States grew 56%, year-on-year, from the first quarter of 2001 to the first quarter of 2002.
Exports of goods to neighbors Iraq and Saudi Arabia also are important to Jordan's economy, and growth in regional exports is helping to further Jordan's economic recovery. Remittances from Jordanian workers in the Persian Gulf countries also are very important to Jordan's balance of payments.
Jordan was admitted to membership in the World Trade Organization in April 2000, after agreeing to a package of trade and investment liberalization measures, as well as improvement in protections for foreign-owned intellectual property.
A privatization program has been undertaken to reduce the Jordanian government's stake in sectors of the economy previously dominated by state-controlled firms. The Jordanian government sold a 40% stake in the Jordan Telecommunications Company to France Telecom in 2000, in the most significant privatization to date. Oil and electric power generation also are targeted for privatization, but progress in the energy sector has been relatively slow. As part of its preparations for admission to the WTO, Jordan in 2000 lifted most limits on foreign ownership of formerly state-owned companies.
An important issue for Jordan is adequate water availability. In 1998, around $60 million out of total U.S. aid to Jordan of $150 million will be spent on water projects. Jordan is looking to increase its fresh water supplies, as its underground aquifers are being depleted as the country's water consumption rises along with the rapidly growing population. One proposal is for a $5 billion canal linking the Red Sea with the Dead Sea, where desalination plants would produce water for consumption in Israel and Jordan. The canal theoretically could produce significant amounts of hydroelectricity by utilizing the differential in elevations between the Mediterranean Sea and the Dead Sea, the lowest point on Earth.
Jordan has made great progress in recent years in restoring normal relations with the Arab states of the Persian Gulf, which were strained as a result of Jordan's perceived tilt toward Iraq after the invasion of Kuwait in 1990. Ties between Jordan and Syria also have warmed in 1999, as Syria has indicated interest in renewed peace talks with Israel. A number of agreements have been concluded between Jordan and Syria in recent months for economic cooperation and joint development of infrastructure projects, most notably a dam on the Yarmouk River.
