Jordan

Bureau of Near Eastern Affairs                                                
May 2007                                                                      
                                                                       
  Background Note: Jordan                                                     
                                                                       
  Flag of Jordan is three equal horizontal bands of black at top, white, and  
  green, with a red isosceles triangle based on the hoist side bearing a small
  white seven-pointed star.                                                   
                                                                       
  PROFILE                                                                     
                                                                       
  OFFICIAL NAME:                                                              
  Hashemite Kingdom of Jordan                                                 
                                                                       
  Geography                                                                   
  Area: 89,342 sq. km. (34,495 sq. mi.).                                      
  Cities: Capital--Amman (pop. 1.9 million). Other cities--Irbid (272,681),   
  Az-Zarqa (472,830).                                                         
                                                                       
  People                                                                      
  Nationality: Noun and adjective--Jordanian(s).                              
  Population (2006, per IMF): 5.63 million.                                   
  Religions (est.): Sunni Muslim 95%, Christian 4%, other 1%.                 
  Languages: Arabic (official), English.                                      
  Education (2006, according to Jordan's Department of Statistics):           
  Literacy--90.9%.                                                            
  Health (2003): Infant mortality rate--19/1,000. Life expectancy--71 yrs.    
  Ethnic groups: Mostly Arab but small communities of Circassians, Armenians, 
  and Kurds.                                                                  
  Work force (1.3 million, of which 260 thousand are registered guest workers):
  public sector 17%, services 36%, manufacturing 20%, education 12%, health and
  social services 10%, primary industries 5%.                                 
  Unemployment rate (2006): 13% of economically active Jordanians.            
                                                                       
  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 18.                                                  
  Administrative subdivisions: Twelve governorates--Irbid, Jarash, Ajloun,    
  al-'Aqaba, Madaba, al-Mafraq, al-Zarqa, Amman, al-Balqa, al-Karak,          
  al-Tafilah, and Ma'an.                                                      
                                                                       
  Economy                                                                     
  Nominal GDP (2006): $14.3 billion.                                          
  Annual real growth rate (2006): 6.4%.                                       
  Per capita GDP (2006): $2,533.                                              
  Natural resources: Phosphate, potash.                                       
  Agriculture: Products--fruits, vegetables, wheat, olive oil, barley, olives.
  Land--10% arable; 5% cultivated.                                            
  Industry (26.5% of GDP in 2006): Types--phosphate mining, manufacturing,    
  electricity and water; cement and petroleum production, and construction.   
  Trade: Exports (2006)--$5.17 billion: phosphates, potash, garments,         
  fertilizers, pharmaceutical products, agricultural products. Major          
  markets--U.S., Iraq, India, Saudi Arabia, U.A.E., Syria, Israel, Kuwait.    
  Imports (2006)--$11.46 billion: crude petroleum and derivatives, vehicles,  
  machinery and equipment, cereals, fabrics and textiles. Major suppliers--   
  Saudi Arabia (mainly crude oil and derivatives), EU, China, U.S., Egypt,    
  South Korea, Japan, Turkey.                                                 
                                                                       
  Note: From 1949 to 1967, Jordan administered 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 concerned parties based on UN Security Council
  Resolutions 242 and 338.                                                    
                                                                       
  PEOPLE                                                                      
  Jordanians are Arabs, except for a few small communities of Circassians,    
  Armenians, and Kurds who have 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 semi-nomadic. Most of the population lives where rainfall can    
  support agriculture. Approximately 1.7 million registered Palestinian       
  refugees and other displaced persons reside in Jordan, many as citizens.    
                                                                       
  HISTORY                                                                     
  The land that became Jordan is part of the richly historical Fertile Crescent
  region. Around 2000 B.C., 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 League of Nations awarded the       
  territory now comprising Israel, Jordan, the West Bank, Gaza, and Jerusalem 
  to the United Kingdom as the mandate for Palestine and Transjordan. In 1922,
  the British divided the mandate by establishing the semiautonomous Emirate of
  Transjordan, ruled by the Hashemite Prince Abdullah, while 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 ended its special defense  
  treaty relationship with the United Kingdom in 1957.                        
                                                                       
  Transjordan was one of the Arab states which moved to assist Palestinian    
  nationalists opposed to the creation of Israel in May 1948, and took part in
  the warfare between the Arab states and the newly founded State of Israel.  
  The armistice agreements of April 3, 1949 left Jordan in control of the West
  Bank and 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 I. 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. During the war, Israel gained control of the West   
  Bank and all of Jerusalem. In 1988, Jordan renounced all claims to the West 
  Bank but retained an administrative role pending a final settlement, and its
  1994 treaty with Israel allowed for a continuing Jordanian role in Muslim   
  holy places in Jerusalem. 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. The heavily armed fedayeen constituted a growing threat
  to the sovereignty and security of the Hashemite state, and open fighting   
  erupted in June 1970.                                                       
                                                                       
  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. 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. It negotiated an end to hostilities
  with Israel and signed a peace treaty in 1994. Jordan has since sought to   
  remain at peace with all of its neighbors.                                  
                                                                       
  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 King,
  who may dismiss other cabinet members at the prime minister's request,      
  appoints the council of ministers, led by a prime minister. 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 number of   
  deputies in the current Chamber of Deputies is 110, with a number of seats  
  reserved for various religions, ethnicities, and women. The Chamber, elected
  by universal suffrage to a 4-year term, is subject to dissolution by the    
  King. The King appoints the 55-member Senate for a 4-year term. Parliamentary
  elections are scheduled to be held in the fall of 2007.                     
                                                                       
  The constitution provides for three categories of courts--civil, religious, 
  and special. Administratively, Jordan is divided into 12 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 Abdullah bin al-Hussein II                             
  Prime Minister--Marouf Bakhit                                               
  Minister of Defense--Marouf Bakhit                                          
  Foreign Minister--Abdelelah al-Khatib                                       
  Ambassador to the U.S.--Prince Zeid bin Ra'ad                               
  Ambassador to the UN--Charge d'affaires Bashir Zubi                         
                                                                       
  Jordan maintains an embassy in the United States at 3504 International Drive
  NW, Washington, DC 20008 (tel. 202-966-2664).                               
                                                                       
  POLITICAL CONDITIONS                                                        
  King Hussein ruled Jordan from 1953 to 1999, surviving 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 and 1993, Jordan held free and fair parliamentary elections.
  Controversial changes in the election law led Islamist parties to boycott the
  1997 elections. King Hussein ended martial law in 1991 and legalized        
  political parties in 1992.                                                  
                                                                       
  King Abdullah II succeeded his father Hussein following the latter's death in
  February 1999. Abdullah moved quickly to reaffirm Jordan's peace treaty with
  Israel and its relations with the U.S. Abdullah, during his first year in   
  power, refocused the government's agenda on economic reform.                
                                                                       
  Jordan's continuing structural economic difficulties, burgeoning population,
  and more open political environment led to the emergence of a variety of    
  political parties. Moving toward greater independence, Jordan's Parliament  
  has investigated corruption charges against several regime figures and has  
  become the major forum in which differing political views, including those of
  political Islamists, are expressed. In June 2001, the King dissolved        
  Parliament. Parliamentary elections were held in June 2003, and municipal   
  elections were held in July 2003. The King appointed the current Prime      
  Minister, Marouf Bakhit, in December 2005. Bakhit and his cabinet have set as
  their goal the continued legislative implementation of a ten-year reform    
  plan, known as the National Agenda, drafted by a royal commission in 2005.  
  The King also charged the new cabinet with strengthening Jordan's security  
  following the November 2005 suicide hotel bombings in Amman that killed 60. 
                                                                       
  ECONOMY                                                                     
  Jordan is a small country with limited natural resources. The country is    
  currently exploring ways to expand its limited water supply and use its     
  existing water resources more efficiently, including through regional       
  cooperation. Jordan also depends on external sources for the majority of its
  energy requirements. During the 1990s, its crude petroleum needs were met   
  through imports from neighboring Iraq. Since early 2003, oil has been       
  provided by some Gulf Cooperation Council member countries. In addition, a  
  natural gas pipeline from Egypt to Jordan through the southern port city of 
  Aqaba is now operational. The pipeline has reached northern Jordan and      
  construction to connect it to Syria and beyond is underway.                 
                                                                       
  Under King Abdullah, Jordan has undertaken a program of economic reform. The
  government has taken the initiative to gradually eliminate fuel subsidies,  
  pass legislation targeting corruption, and begin tax reform. It has also    
  worked to liberalize trade, gaining access to the World Trade Organization  
  (WTO) in 2000, signing an Association Agreement with the European Union (EU)
  in 2001, and securing the first bilateral Free Trade Agreement between the  
  U.S. and an Arab country in 2001. Since 2000, exports of light manufactured 
  products, principally textiles and garments manufactured in the Qualifying  
  Industrial Zones (QIZ) that enter the United States tariff and quota free,  
  have been driving economic growth. Jordan exported $6.9 million in goods to 
  the U.S. in 1997, when two-way trade was $395 million; according to the U.S.
  International Trade Commission, it exported $1.42 billion in 2006, with     
  two-way trade at $2.07 billion.                                             
                                                                       
  The Free Trade Agreement (FTA) with the United States that went into effect 
  in December 2001 will phase out duties on nearly all goods and services by  
  2010. The agreement also provides for more open markets in communications,  
  construction, finance, health, transportation, and services, as well as     
  strict application of international standards for the protection of         
  intellectual property. In 1996, Jordan and the United States signed a civil 
  aviation agreement that provides for "open skies" between the two countries,
  and a U.S.-Jordan treaty for the protection and encouragement of bilateral  
  investment entered into force in 2003. More information on the FTA is       
  available on www.jordanusfta.com.                                           
                                                                       
  Such developments hold considerable promise for diversifying Jordan's economy
  away from its traditional reliance on exports of phosphates and potash,     
  overseas remittances, and foreign aid. The government has emphasized the    
  information technology (IT) and tourism sectors as other promising growth   
  sectors. The low tax and low regulation Aqaba Special Economic Zone (ASEZ) is
  considered a model of a government-provided framework for private sector-led
  economic growth.                                                            
                                                                       
  Jordan is classified by the World Bank as a "lower middle income country."  
  The per capita GDP, as reported by the International Monetary Fund (IMF), was
  $2,533 for 2006. According to Jordan's Department of Statistics, 13% of the 
  economically active Jordanian population residing in Jordan was unemployed in
  2006. Education and literacy rates and measures of social well-being are    
  relatively high compared to other countries with similar incomes. Jordan's  
  population growth rate has declined in recent years and is currently 2.3% as
  reported by the Jordanian government. One of the most important factors in  
  the government's efforts to improve the well-being of its citizens is the   
  macroeconomic stability that has been achieved since the 1990s. The rate of 
  inflation in 2006 was 6.3%; the currency has been stable with an exchange   
  rate fixed to the U.S. dollar since 1995 at JD 0.708-0.710 to the dollar. In
  2006, Jordan significantly reduced its debt to GDP ratio to 73.2% of GDP.   
                                                                       
  While pursuing economic reform and increased trade, Jordan's economy will   
  continue to be vulnerable to external shocks and regional unrest. Without   
  calm in the region, economic growth seems destined to stay below its        
  potential.                                                                  
                                                                       
  FOREIGN RELATIONS                                                           
  Jordan has consistently followed a pro-Western foreign policy and           
  traditionally has had close relations with the United States. These relations
  were damaged by support in Jordan for Iraq during the first 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.                                                       
                                                                       
  Following the first Gulf war, Jordan 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 improved substantially after King Hussein's death.       
  Following the fall of the Iraqi regime, Jordan has played a pivotal role in 
  supporting the restoration of stability and security to Iraq. The Government
  of Jordan has facilitated the training of over 50,000 Iraqi police cadets at
  a Jordanian facility near Amman.                                            
                                                                       
  Jordan signed a nonbelligerency agreement with Israel (the Washington       
  Declaration) in Washington, DC, on July 25, 1994. Jordan and Israel signed a
  historic peace treaty on October 26, 1994, witnessed by President Clinton,  
  accompanied by Secretary Christopher. The U.S. has participated with Jordan 
  and Israel in trilateral development discussions in which key issues have   
  been water-sharing and security; cooperation on Jordan Rift Valley          
  development; infrastructure projects; and trade, finance, and banking issues.
  Jordan also participates in multilateral peace talks. Jordan belongs to the 
  UN and several of its specialized and related agencies, including the World 
  Trade Organization (WTO), the International Meteorological Organization     
  (IMO), 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), Nonaligned Movement, and Arab League.             
                                                                       
  Since the outbreak of the Intifada in September 2000, Jordan has worked to  
  maintain lines of communication between the Israelis and the Palestinians to
  counsel moderation and to return the parties to negotiations of outstanding 
  permanent status issues.                                                    
                                                                       
  During summer 2006, Jordan provided considerable relief supplies to Lebanon 
  and has supported U.S. efforts to generate international security assistance
  for Lebanese national forces.                                               
                                                                       
  U.S.-JORDANIAN RELATIONS                                                    
  Relations between the U.S. and Jordan have been close for over four decades.
  A primary objective of U.S. policy has been the achievement of a            
  comprehensive, just, and lasting peace in the Middle East.                  
                                                                       
  U.S. policy seeks to reinforce Jordan's commitment to peace, 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 prosperity.             
                                                                       
  Since 1952, the United States has provided Jordan with economic assistance  
  totaling more than $9 billion ($1.3 billion in loans and $7.7 billion in    
  grants), including funds for development projects, health care, education,  
  construction to increase water availability, support for microeconomic policy
  shifts toward a more completely free market system, and both grant and loan 
  acquisition of U.S. agriculture commodities. These programs have been       
  successful and have contributed to Jordanian stability while strengthening  
  the bilateral relationship. U.S. military assistance--provision of material 
  and training--is designed to meet Jordan's legitimate defense needs,        
  including preservation of border integrity and regional stability. Jordan   
  signed a Threshold Agreement with the Millennium Challenge Corporation (MCC)
  in October 2006, and was subsequently deemed by the MCC to be eligible for a
  Compact Agreement in recognition of the country's progress on economic,     
  social, and political reform indicators.                                    
                                                                       
  Principal U.S. Officials                                                    
  Ambassador--David M. Hale                                                   
  Deputy Chief of Mission--Daniel Rubinstein                                  
  Political Affairs--David Greene                                             
  Economic Affairs--Natalie Brown                                             
  Consular Affairs--Rena Bitter                                               
  Management Affairs--Perry Adair                                             
  Public Affairs--Phillip Frayne                       &