nn)rlTMFNT OF INTFRNATIONAT. BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Not For Public Use Repor NO. EMA-54n UUK1tLN1 LLUUNUN1U t'Ua11LUiN AND PROSPECTS OF JORDAN October 10, 1972 I mis report was prepared ior oiiiciai use only y bn ihe1Bank Goup. i nitay not bc pub'ushdU, quoted I or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report. CURRENCY EQUIVALENTS Currency Unit: Jordanian Dinar (JDj) JD 1 = U$ 2.80 Us$1 JD 0.357 JD 1 million US$ 2,800,000.00 TABLE OF CONTENTS Page No. 11AP BASIC DATA SU'n^m!AR'f AN'D CONCLUSIONS ....................................... 0........ i I. DlACKTIOUUN ....................... * .... . *....... 1 II. ECONOMIC STRUCTURE AND PERFORMANCE ............... ... 3 IlI. DEVELOPMENT PLANNING ................................ 6 IV. POPULATION MANPOWER AND EMPLOYMENT ... ............... 9 V. DOMESTIC FINANCE .................................... 13 VI. THE BALANCE OF PAYIIENTS .............. ............. 16 VII. PROSPECTS ......................... ....... ..... 19 ANNEX - MAJOR ECONOMIC SECTORS ........................... 22 A. Agriculture .................................... 22 B. Industry' .............................. ......*. 35 C. Transport .. ..................................... 42 STATISTICAL APPENDIX This report is based on the findings of an economic mission which visited Jordan in November/December 1971. The mission was composed of Messrs. F.A. Atabani (Chief), A. Zaman (general economist), C.J. Martin (planining adviser), G. Yates (agricultural economist), R. Pioger (irrigation specialist), S. Wellisz (consultant on industry), K. Marsden (ILO consultant on employment and manpower), K. Mera, (regional economist), and R. Venkateswaran (transport economist). Lo-k ;. Muttheibeh. | g |< T/b~~~~~~Unerra WCnontroetio;nl , J. f ;/ $t , /.~~t k T, b s It Xu,I Zerq |___ AMMAN0 El AzvoqO I~~~~1 e h ModWatt, _ : {~~~ ~~/AJ ,0 i it ))t 'iI ] ( *4ltl /-@tr~~~~~~~~~~~~~tano @ (I'J *I ! ,.,.11 > fif \ + I~Tofil ) / / )o opP Haso \ intar _p =r to t-o for gpitionra n ia by the international tank foe a Reconotru tton ' I I 'I ~~~~~~~~~~~~~~~~~~at h t . t .I111Ir-i | @3 / | Petrao) (a po l )/ ~~\\N IL,,. untetnu/uifHitiyO / RAILWAYS ASPHALT ROADS -s--a.-x>s Existing Pri-tay %A ~~~~~~~~-n a-s-.-.- Under Construction Setondory 1 / Sv t}/ aXonOnnnxnxxm PrNoposed Under Con ttuction ftN It Phosphate Deposits g)~ a' w- *s*******....Trons-Arobian P.pel.na \%t * Refinery Mudowwara l, a to 20 30 40 so 4W - - Otoupied TK,rUto,,es SFPTEMBER 1969 oRDn 25.2 Page 1 of 2 pages COUNTRY DATA - JORDAN ARF.A 2J POPULATION DENSITY 97,740 kmt 2.4 million ( 1971) 25 per k / Rate of Growth: 3.5% (frml96l t01970 ) 215.6 per km-of arable land POPULATION CHARACTEPTRSTTCS HAFALTH Crude Birth Rate (per 1,000) 45.6 (1970) Population per physician 3,680 (1966) Crude Death Rate (per 1,000) 18.0 (1970) Population per hospital bed 580 (1966) infant Mortality (per 1,000 live births) 28.0 (1968) INCOME DISTRIBUTION DISTRIBUTION OF LAND OWNERSHIP % of national income, lowest quintile ., % owned by top 10% of owners highest quintile *. % owned by smallest 10% of owners ACCESS TO PIPED WATER ACCESS TO ELECTRICITY % of population - urban 85 (1971) % of population - urban - rural 55 (1971) - rural NUTRTTION EDUCATION Calorie intake as % of requirements 98.0 (1964-66) Adult literacy rate % 55.0 (1965 Per capita protein intake 64.8 (1964-66) Primary school enrollment % 96.0 (1966) 1/ GNP PER CAPITA in 1971 : US $ 255 GROSS NATIONAL PRODUCT IN 1970 ANNUAL RATE OF GRO'w'TH (, constant prices) US $ Mln. % iL961-66 1t967- D-7 1970 GNP at Market Prices 577.1 100.0 7.9 -4*5 -17.4 Gross Domestic Investment 54-1 9.4 6.9 -13-3 -36.0 Gross National Saving 34.7 6.0 Current Account Balance, -19.4 -3.4 Exports of Goods, NFS2/ 84-5 14.6 13.6 0.6 - 6.2 Imports of Goods, NFS/ 251.8 43.6 10.5 7.1 -22.5 OUTPUT, LABOR FORCE AND PRODUCTIVITY IN 1970 Value Added Labor Force V. A. Per Worker TS _$141n. % ThQusaa % US $ % Agriculture 81.2 16.7 115 32.9 70O6.1 Industry 82.1 16.9 25 7.2 3281L.0 Services 323.1 66.4 79 22.5 4089.9 Unallocated . .. 131 37 Total/Average 486' 100.0 350 100.0 GOVERNMENT FINANCE General Government CU'ntral Government (US $ Mln.) % of GP ( Mln.) % of GDP 1970 1970 1968-70 1970 _14970 _Qr_7n Current Receipts 183.9 33-9 33.8 183.9 33-9 33-8 Current Expenditure iQ5-5 -e ,,65.3 30.5 30.2 Current Surplus 18.6 3.4 3.6 18.6 3.4 3.6 Capital Expendituras 60.7 11.2 11.4 60.7 11-2 11.4 External Assistance (net) 6.4 1.2 2.1 6.4 1.2 2.1 1/ The Per Capita GNP estimate is at 1970 market prices, calculated by the same conversion technique as the 1972 World Atlas. All other conversions to dollars in this table are at the average exchange rate prevailing during the period covered. 2! Balance of Payment Fgitres not available Page 2 of 2 pages COUNTRY DATA - JORDAN MONEY, CREDIT and PRICES 1965 1969 1970 1971 19Bl 197t2 (Million JI) outstanding end period) Money and Quasi Money 64.1 118.8 129.1 135.1 135.0 135.6 Bank Credit to Public Sector 2.1 io.6 16.0 27-5 26.4 30-3 Bank Credit to Private Se_tor 31.6 43.5 43.6 44.9 43.9 47.2 (Percentages or Index Numbers) Money and Quasi Money as % of GDP 38.2 53-9 66.7 65.4 General Price Index (1967 = 100) 111.6 117.9 120.3 121.5 123.1 Annual percentage changes in: General Price Index 11.6 5.6 2.0 Bank credit to Peblic Sector 189.1 50-7 71e 6 Bank credit to Private Sector 13.4 0.3 3-0 BALANCE OF PAYMENTS MERCHANDISE EXPORTS (AVERAGE 1968-70Q 1968 1969 IO US $Mln % (Millions US $) Phosphates 9.3 29.8 Tomatoes axid TomaHtoe j-ice 4.7 15.1 Exports of Goods, NtFS 72-5 87-3 84-5 Citrus Fruits 2.3 7.4 Imports of Goods, NFS 225.8 304.7 251.8 Cigarettes 1.5 4.8 Resource Gap (deficit = -) -17 -217Tj? -167rj Cements 1.1 3.5 Eggolants 0.9 2.9 Interest PayerLs (nt) 13.8 16.9 17.1 All other comodities 11, Workers' Remittances 11.5 19.4 15.5 Total 31.2 lOQ,0 Other Factor Payments (net) 3-8 3-0 2.7 Net Transfers 152.5 132.6 112.6 EXTERNAL DEBT, DECEMBER 31. 1970 Balance on Current Account 28.3 - 45j - 1 9. US $ MIn Direct Foreign Investment - 0.1 2.2 - 3.8 Net MLT Borrowing 12.5 11.0 2.2 Public Debt, incl. guaranteed 177.7 Disbursements (15-4) (13.2' '6.0' Non-Guaranteed Private Debt Amortization ( 2 ( 2.2 (3.8 Total outstanding & Disbursed Subtotal 12.4 13.2 - 1.6 Capital Grants .. .. .. DEBT SERVICE RATIO for 1971 21 Other Capital (net) 1.5 1.8 2.1 6.3 Other items n.e.i 1 I 1'IH Increase in Reserves (+) + 45.7 30.5 4.4 Public Debt, incl. guaranteed Non-Guaranteed Private Debt Gross Reserves (end year) 306.4 278.6 274.7 Total outstanding & Disbursed Net Reserves (end year) 294h8 266.6 262.4 RATE OF EXCHANGE IBRD/IDA LENDING, M4arch 31, 1972 (Million US S): Through - 1971 IBRD IDA US $ 1.00 = JDO.357 1.00 = US $2.80 Outstanding & Disbursed 10.3 Undisbursed 5.7 Since - 1971 Outstanding incl. Undisbursed ,.-- US $ 1.00 JDO.357 JD 1.00 = US $2.80 l/ Ratio of Debt Service to Exports of Goods and Non-Factor Services. not available Summary and Conclusions i. Recent economic events in Jordan have been influenced by the 1967 war with Israel and the subsequent confrontation with the Palestinian guer- illa movements. The war, and the consequent occupation of the West Bank, led to widespread disruptions of economic activities and severely curtailed the growth of the most promising sectors such as agriculture, tourism and indus- try. Following the 1967 war, growing political tensions led to increasingly severe clashes between the Jordanian Army and the guerilla forces. The severity of the situation finally led the Government in September 1970 to use the army against the guerillas. As a result, the Government's authority once again extends to all parts of the East Bank of Jordan. ii. This success, however, has been bought at some economic cost. Arab aid which had assumed an important role in the post 1967 period, has been drastically curtailed through the suspension of both Libyan and Kuwaiti financial support with little promise of being resumed in the near future. Only Saudi Arabia continues to provide financial support to Jordan. A very difficult budgetary and balance of payments position was averted only through the resumption of budget support from the United States. iii. Capital aid, however, continues to be provided to Jordan on favor- able terms. The principal capital donors during 1967-71 have been, Saudi Arabia, the United States, the United Kingdom, the German Federal Republic who together contributed around 75 nercent of the total gross canital inflow of around US$55 million. The Government of Kuwait, the Kuwait Fund for Arab Economic Develonment and IDA contributed the balance in roughly equal pro- portions. iv. After 1967 Jordan, at first, paid little attention to development policies; nriorities and'other mediAn ar.d lon-ter.,m cons,ider i-.s. Te emphasis of economic policy was shifted toward short run management of the eronomy. With insufficient interest in overall ecor.o.ic development strategies and policies, the Jordan Development Board (JDB) deteriorated in effectiveness and imnortance as it lost its prominent role as well as most of its staff. There is, however, evidence that the Jordan Government is now turning its attention constructively to the -erlod ahead, as shon by the decision to re-vitalize the planning mechanism through the creation of a National Plan- nine rounril (renlacina the TDB) and to dra up, a ne Three Year Develop= ment Plan for which the best economic talent in the country has been en- gaged. The TNDP hns adreed, at tebGovernment's request, to finance a technical assistance project in planning. The World Bank will be the executing agency. v. The' new importance attached to planning and the emphasis on mediut. and long-term policies for the development of the productive sectors are like- ly to have a fa-oable ef fect n tAlle meUlu. ardU '.Log-term prospects of the economy. The most promising development potential exists in the agricultural - ii - secto:. .Agricultural lar.1 and waeA tens r reairn the rnnmt valuahle of tfho coniiint-ruy natural resources and their future development could provide additional pro- Auction, exports andA em,ployment. At- present Jordan 4mports- ther larger part U L ..AI1,Lp L L L'. V)l_.L f- ~ f* * . , ',. -- - - - _r - of its food requirements and is not exploiting the export advantage it en- : ___ :J U%_ : a AL %-U..T - 14 tha 11,.1 successfulof A the cou.nt.M' 4- t rigated agriculture, rainfed farming and livestock, Jordan could supply most ofL its food r=eq4u`iremen1ts sucht as whLeat and m'eat and at the same- tim.e develop expotts of citrus and other fruits for which markets exist in other Middle LasterLL Countries - partLcuLarLy thl&e Gulf States = an- p Yly Europe too. Jorudan' rianufa-Ctuiring sectLr Ls still in an embryonic state of de= velopment. Small artisan type enterprises predominate. The Government pro- motes, protects anu regulates pLi-vate enterpIr is e anU sponsors r.odern , Large scale establishments. In the past Government sponsorship has helped to mobilize capital for "ilumpy" industrial investments, thus channelling ca- pital towards relatively capital-intensive projects that generate little em- ployment. This has meant that iess capitai was available to small lauor iF- tensive enterprises whose growth was thereby impeded. If industrial poli- cies are to be adapted to reflect the resources and the problems facing ehe Jordanian economy, then a way must be found to give direct and indirect aid to small scale industries. One possibie way or acnieving tnis would De by giving encouragement and providing finance to the Industrial Development Bank to set up special services to cater to the needs of small units. vii. At present phosphate rock is Jordan's largest single export and virtually the only product exported to non-Arab countries. Prospects for fu- ture expansion of phosphate mining are contingent upon the reopening of the Suez Canal and the development of new markets in South Asia and the Far East, whereas the development of phosphate-based industry requires the cooperation of potential customer countries. viii. The 1970 Establishment Survey has revealed that services (mostly puLlic) account for more than 30 percent of tile total labor force. Tne major employment categories within the Services Sector are the Army and lolice, public administration and education. Maintenance of a service es- tablislnient on such a scale has been made possible by the sizable budget support Jordan began receiving atter 1967. The suspension of a major part of Arab budget support since 1970 has made it difficult for the Government to maintain such a large establishment and almost impossible to expand it. There is clearly a need to begin longer term plans to expand employment op- portunities in the more productive sectors through capital-saving techniques and incentives. ix. Jordan's transport system is well developed and is not likely to be a constraint to economic growth over the next decade. However, Jordan faces the main problem of how to plan effectively for more intensive use of already constructed transport facilities while at the same time, protecting and maintaining investments already made and planning and improving selec- tively parts of the system justifying additional investments. - iii - x. The Central Government budget in Jordan has traditionally been in deficit as a result of the limited tax base, the maintenance of a sizable de- fense establishment and the Government's efforts to promote the nation's eco- nomic development. The Government consistently relied on foreign aid (budget sunport) firstly from the United Kingdom, then from the United States and more recently from Arab Governments. Between 1967-1969 budget support con- sti.tfhted mnre than 50 percent of the total Government revenues but declined thereafter to 48 percent and 44 percent in 1970 and 1971 respectively. De- spite decl4ning budget Sunnort, total revenues increased by about 3 percent per year during the period 1967-71 as domestic revenues rose by around 9 per- cent per year nver the same period. At the same time and narticularlv after 1969 the Government has been attempting to curtail the rate of growth of to- tal expenditures which as reduced from 35 percent in 1Q67 to around-5 ner- cent in 1971. But the attempts to raise revenues and control expenditures were apparently not enough to prevent sizable overall budetar def-i cits from recurring. To finance these deficits the Government has drawn down its cash balances and borrowed extensively from the banking sector. xi. Recent domestic developments are reflected in the balance of pay- ments where substantial deficits have resulted from declining receipts from exports, LLLV.LisUbles and trar,sfers. -nIt97t, for th.e third successive year, both the current account and the overall balance of payments were in deficit. Elxyorts durAin6g the 190617=7'1 period suffered f-irstly from the Adisturbances 4-i the Jordan Valley that seriously affected agricultural production and second- ly from the recent temporary closure of the Syrianr border which affected both phosphate and agricultural exports. But in the past few months the Syrian autnorities have reopeneU tile'r borders fLor Jordanian exports. Durring th same period, however, the Jordanian authorities have maintained rather liberal trade policies based on low tariffs, minimum resort to quantitative restric- tions and free entry for such essential goods as foods and raw materials in an attempt to stabilize etie internal price level through easy access to Im- ports. Such a policy was made possible by the high levels of budget support received under the Khartoum Agreement. Current transfers from abroad have been a major item in the balance of payments and have helped to finance part o0 thfe deficit on tile traue ualance. Hiowever, these nave Uecl'liea s'inPe 1969 and are not expected to increase in the near future. xii. Capital aid has, in the past, been provided to Jordan mostly on soft terms. A large part of capital aid has been provided interest free and the remainder on 2 - 3 percent per year. -Average maturity has been around 24 years with 6 - 8 years grace. External public debt outstanding at the end of 1971 was JD 64 million (US$178 million) of which JD 17 million (US$48 million) was undisbursed. Debt service as a percentage of earnings from ex- ports and non factor services, was 6.3 percent for the same year. In view of Jordan's limited ability to service external debt, its limited resource base, the low per capita income and the need for substantial and continued external assistance if the country is to develop its productive sectors, capital aid should continue-to be provided on concessionary terms. xiii. With the Government's recent concern with development issues and the reorientation of economic policies that is currently being undertaken as part of the Three Year Plan, and barring a repetition of the 1970 civil dis- turbances, the future prospects of the Jordanian economy appear to be better than at any time since 1967. But to realize the full development potential, leading to an eventual phasing out of budget support, will be a long-term process in which the Three Year Plan is to be viewed as a first step only. During the Plan period it is expected that Jordan will continue to need bud- get support of about the same magnitude of the recent past (around JD 35 million a year). Gross Domestic Product could grow by 5 - 7 percent per year between 1973-75. From recent experience, gross investment, to be channelled mostly to agriculture and industry, could be around JD 35 million a year and national savings between JD 15-17 million a year. The deficit on the current-account is projected at between JD 18-20 million a year. However, prospects for the longer term will depend on Jordan's ability to sustain the development momentum, adopt the appropriate economic policies and in- vestment criteria. Given these preconditions and assuming that peace re- turns to the area, it is likely that the country can match the rates of economic progress that were experienced in the pre 1967 years. I. INTRODUCTION 1. Lying in the arid zones of the Middle East, Jordan covers an area of around 97,000 square kilometers, of which about 6,000 square kilometers lie on the West Bank of the Jordan river. Only about 5 percent of the total is cultivable land. Cropping on about 90 percent of the cultivable land is dependent on limited and irregular rainfall. Irrigated agriculture is main- ly confined to the Jordan rift valley. Besides phosphate rock, which is ex- ported in sizable quantities, there are few known mineral resources. 2. The population of Jordan is estimated at 2.42 million in 1971. Of this total approximately 1.72 million live in the East Bank and the re- mainder in the West Bank. Population growth has averaged 3.5 percent a year since 1961. Over the same period the population density increased fron 18 to 25 per square kilometer. One third of the labor force is em- ployed in agriculture, while industry provides employment for one tenth of the labor force and a similar proportion are engaged in construction activities. Somewhat more than one third of the total labor force finds employment in the services sector. 3. The Government of Jordan is a hereditary constitutional monarchy with a bicameral legislature consisting of a Council of Notables appointed by the King and a Council of Representatives elected by male suffrage. Executive power is vested in the King and the Council of Ministers. The Cabinet and the Prime Minister are appointed by the King. 4. Recent political and economic events in Jordan have been influ- enced by the 1967 war with Israel and the subsequent confrontation with the Palestinian guerilla movements. The war and the consequent occupation of the West Bank. led to widespread disruption of economic activities and severely curtailed the growth of the most promising sectors such as agriculture, tourism and industry. Growing political tensions led to increasingly severe clashes between the Jordanian army and the guerilla forces. Initially, the monarchy was hesitant to take action against the guerillas who, by the summer of 1970, had assumed physical control of large sections of Jordan and were collecting levies even in Ajmman. The severity of the situation finally caused King Hussein to use his army to assert his sovereignty, and consequently engulfed the country in a civil war in September. Following the civil war and the Jordanian army's final thrust against the guerillas in the summer of 1971, the Government's authority once again extends to all parts of the East Bank of Jordan. While the Palestinian guerillas were forced to seek refuge in neighboring Arab countries, Jordan is repairing the war damages, hampered only rarely by anti-government gestures to which the authorities have re- sponded firmly. But there still remains to be settled the fundamental question of a lasting peace in the area and the state of the West Bank. In March 1972, King Hussein advanced.a proposal for the creation of a United Arab Kingdom combining two states, one in East Jordan and one in West Jordan, under the leadershin of the King. The two states wnuld enJoy va suthtantial measure of local autonomy. 2- 5. The Government's success in reestablishing its authority and con- trol over the country affected its relations with some of the countries in the Arab world. The elimination of the guerillas not only cost Jordan financial support from Libya and Kuwait, but also led to the temporary closure of the Syrian and Iraqi border to Jordanian trade. Specially the action by the Syrian government has had far-reaching repercussions on the economy of Jordan since the vast majority of Jordanian exports and imports pass through Syria. However, the borders have recently been partially reopened for transit traffic and exports of Jordanian phosphates, fruits and vegetables. II. ECONOMIC STRUCTURE AND PERFORMANCE 6. Agriculture, including livestock production, accounting for around 18 percent of GDP, is the largest productive sector in the economy, employ- ing one-third of the labor force and earning around 45 percent of export re- venues. Industrial production is making a moderate but increasingly impor- tant contribution to GDP despite the sethack-s resulting from the 1967 war. the civil disturbances of 1970, and the consequent disruption of domestic and foreign markets. The eronomy is verv hpavilv denendent on external transfers, which together with net factor income from abroad have, on aver- age, accounted for about one-fourth of GNP since 1969. In its trade rela- tions, Jordan is a limited exporter of some agricultural commodities and phosphates, while 4-m,t--4"ra c^nmparai-4elyr lavrg chrro e-of fnnodtuffs, manufactures for consumers, and capital equipment and producer goods. The economy Ls essentially a-Ad on a free omrket concept, b 4nc the mid- 1950's the Government has acted in a regulatory and promotional capacity in sponsor…iog industrial finar.cing ar.d .in assu.ming part.nersh,i.p in the coun.try's leading private industries. 7. Prior to the 1967 war, the Jordanian economy grew at about 8 per- cent per year. Per capita rLUP rose f u$208 i.L 1961 LU Ua,260 in '966, an average increase of around 4.5 percent per year. Substantial price stability prevailed over this period and, as a result of considerable for- eign assistance, a surplus in the balance of payments was achieved. Al- though domestic savings were negative, national savings as a result of fac- tor income and transfers from abroad, average around 12 percent of GNP. Economic policy in those years was guided by the objective of phasing out foreign budget support by the mid-seventies when foreign aid would be chan- neled to development projects only. This was being acnieved, on the one hand, through the institution of a firm budgetary control system that em- phasized ceilings on current expenditures and, on the other hand, through efforts to increase domestic revenues and foreign exchange earnings in an attempt to reduce the savings - investment gap and the baiance or payments gap. On the eve of the 1967 war, this strategy appeared to be yielding positive results as domestic revenues increased and the growth of exports and invisibles promised further improvements in the balance of payments position. An eventual phasing out of budget support appeared to be within reach. 8. These trends were, however, interrupted by the war with Israel in June 1967 which resulted in the loss of the West Bank, and seriously weaken- ed the country. The economic impact of the June war is illustrated in the -4- Table 1, which compares key indicators in the last seven months of 1967 with the corresponding perind in 1966. 1/ T ah1 1: ThMPArGT 0F THE JINE 1Q67 WAR LTnits Jnn.uary _ Ma_ June - Decmber 1966 1967 % change 1966 1967 % change 1. Government Revenues JD millions 12.5 13.4 6.8% 18.5 12.6 -32.0% 2. Imports JD millions 26.1 29.0 11.0% 42.1 26.4 -37.2% 3. Income from Tourism JD millions 4.5 5.0 12.3% 6.8 1.6 -7.6.9% 4. Remittances from JD millions 3.2 3.8 20.3% 7.4 2.7 -63.3% . _ _ _ I dUl L dU J. Cement Production 000 L1ton 14-0 137 0Io, 2 1 - I A- n ILC m-c a InA fka' 14e 1lIf.) SI 0. Petroleum Reini 000 ngtons I _5 198 20.0,i. J65 19 5 U. -2 t Production Sourcet U-eiLtral. Bank'. o0f Jordan, A,-,nuIl R 7'JI 9. Isnlle ehe 'wese Baukrepresentdorl 6 percer.e of lorlar.'s terri- * wflh~tyi'e t'ne 'vves BaUk ~ SLLteU' onILL U LELL ] .J0UL u ~ tory, the loss of this area in June 1967 resulted in a 35-40 percent loss in GuP and sizable reductLons of tax rev7enues and fLoreijgr. exct'Lange earnLings. Moreover, the consequent inflow of refugees to the East Bank created a severe strain on social and urDan infrastructure needs. Only large infusions oL Arab aid (JD 37.7 million a year under the Khartoum Agreement of August 1967) prevented an extremely difficult budgetary and balance of payments position. In 1968, poor climatic conditions reduced agricultural production, while in- creased militancy on the part of the Palestinian guerillas inhibited indus- trial investment. In 1969, however, the economy recovered from the setback 1/ Systematic analysis of post war economic developments is inhibited by the unavailability of regionally disaggregated national income statis- tics. In approximate terms, the post-1967 national accounts use the 1966 figures for the East and West Banks as a base and apply the rates of growth recorded in the East Bank to the whole country, with specific adjustments in West Bank figures where there is departure trom the East Bank performance. Thus, while the figures in the national accounts can- not be readily disaggregated into East/West equivalents, the rates of growth of the aggregate figures reflect to a large extent the rates of growth of the East Bank. Alternatively, these figures may be viewed as crude approximations to the statistics for the integrated pre-war Jordan economy. These statistical peculiarities should be kept in mind in the discussion in this report wherever national accounts data are used. -5- of ene previous year as ex- eptionally, good cl-nA-ti n no n Rn resulteduin increased agricultural production, and private investment and construction activity picked up to pre-war levels. T,he .ivi disturbances of July 1970 and subsequently the civil war in September 1970 put a halt to the brief ex- pansion of 1969 -which LaU contiLnuedu into the fAirst half of '970. The -- lative effect of these events was to leave the economy in 1970 at about the same levels of production as in 1967. 9employment estimated at about 15- 20 percent - became widespread among both white collar workers and skilled labor. In the rirst nalf OI 1971 there was substantial ' ce in the e- nomy and a consequent reduction in the unemployment rate although investment …~ --..J--J.-J-- A V _ - - did not increase as rapidly as otner economic act'LvLtLes. A coUmu.pUl r=_ covery to the 1969 levels, however, has not been possible due to the con- tinuing suspension of budget support rrom Kuwait and Libya (JD 22.9 million a year) and the closure of the Syrian and Iraqi borders. 10. During the post 1967 years, the emphasis of economic policy has decidedly shifted to the short run with the prime aim of revitalizing the economy. The Government has successfully managed to generate an economic recovery - very fragile as the aftermath of the 1970 and 1971 incidents have shown - and a sense of public confidence in the ability of the Govern- ment to keep up the level of economic activity. This was acnieved through high Government expenditures; support and encouragement of the private sec- tor; and the maintenance of price stability by absorbing excess purchasing power through easy access to imports which implied rather liberal trade policies with minimum resort to quantitative restrictions, low tariffs and free entry for such essential items as foods and raw materials. These poli- cies and general confidence in the economy were further strengthened by maintaining the convertibility of the Jordanian Dinar. The result of these economic policies was to shift the burden of economic stability to the balance of payments, foreign aid and ultimately to foreign exchange reserves. 11. During this period little attention was given to development poli- cies, priorities, or long term considerations. Emphasis was given to projects likely to appeal to foreign donors or to satisfy the demands of politically important groups within Jordan. With insufficient interest in overall economic development strategies and policies, the Jordan Development Board (JDB) deteriorated in importance as it lost its prominent role as well as many of its staff. 12. However, there is evidence that the Jordanian Government is grad- ual-iy realizing that neither the economic policies of the past five years nor the excessive preoccupation with short-run economic issues, are suit- able for the years to come. This realization seems to have been the re- sult of on the one hand, the suspension of the Kuwaiti and Libyan payments and the prodding of the other aid donors on the other. More attention is being given to medium and long-term issues. This revived concern with de- velopment is reflected in the recent decision to draw up a Three-Year Plan for which the best economic talent in the country has been engaged. The preparation of the Plan has reached an advanced stage and a final plan do- cument is expected to be published by the Summer of 1972. III. DEVELOPMENT PLANNING 13. In various forms the Jordan Development Board (JDB) has been in existence since the late 1950's. It has been the central government agency responsible for the planning, financing and implementation of economic and social development. In this capacity, the Board has formulated comprehen- sive long-term plans and annual development programs, in close cooperation with the public and private:sectors. It has examined the trends in the de- velopment of Jordan's economy and prepared studies for all projects covered under foreign economic assistance. 14. Over the years the Board has had considerable influence. In 1962 it produced the Five-Year Program for the Economic Development of Jordan 1962-67 which was later revised and expanded into the Seven-Year Program for the Economic Development of Jordan. This plan was effectively abandoned as an operational document after the 1967 war, wphen short run needs of the eco- nomy became the over-riding policy preoccupation. 15. The Jordan Government is attempting to revive and reform the plan- ning machinery in the country as part of an attempt to reorient economic policies towards development issues. A new law on planning has been passed which replaces the JDB by a National Planning Council (NPC). The Council has been given responsibility for preparing long and short-term plans and programs, for setting priorities and determining projects through an annual implementation program. It will be responsible for the review of all de- velopment prolects and in cooperation with the Budget Department of the Min- istry of Finance, for incorporating projects in the development budget. It also has responsibility for examining the manpower needs of Jordan, for de- veloping systems for follow-up and evaluation of programs and for initiating the creation of planning units in ministries. Its Board of Directors con- sists of the Prime Minister, senior economic ministers, the Governor of the Central Bank, the President of the university, and four other members, two of them non-officials nominated by the Council of Ministers. The Board will be resnnnsible for aDproving the development plans and annual imDlementation programs before submission to the Council of Ministers. 16. Other measures to improve the planning machinery include the crea- tlon of planning units in ministries. the formulation of planning committees and a greater cooperation with the private sector. An evaluation of the Seven-Year Plan has been carried out with foreian expert assintanne and a number of shortcomings have been observed. These shortcomings include in- adequate machi4nev for nlanning in hnth t-he pihl4r and privatp sectnrse particularly for the implementation of the plan, lack of project prepara- tion ard follow-up, delay in the exef4tion of pro4ecsar. lc o i f ur,Aer standing of the planning process in ministries and organizations. The ur a L. T.hree=Year P1,-Olar am.ong other thngsa_Mp* Aeal witht scme ofJ these problems. 17. Although the Three-Year Plan is still under preparation, it is und'erstoodU that- it wiLWL have the follow-ing obJectis -CS: (4) Ain arclepration in the growth of GNP combined with relative price stability. (ii) A substantial increase in employment opportunities. (iii) More equitable distribution of economic gains between tL.e UL L fferent.. inco.me groups an,. geograph...cal r.i.on. ('.iv)J Reductions .Lr thL L1Ce ID ud adit Lnd trade Ueci tJhroug the development of domestic revenues and foreign ex- change earn'ngs. Within the general context of these objectives the Plan distinguishes be- tween a short-term development strategy aimed at concentrating available re- sources on projects that will have a snort gestation perLou anda would he.lp to revive the economy. On the other hand, the long-term strategy emphasized in the Plan wiii be to gradually phase out the economy's heavy dependence on foreign budget support and to reduce the deficit on the current account of the balance of payments. To attain this end the Plan will attempt to re- orient public policy in a manner that will ensure the channelling of invest- ment to those projects that are likely to contribute to the broadening or the tax base and the increase in exports. Such measures would include a re- view of existing incentives provided for private investment, more attention and incentives to export expanding activities and the reorientation of agri- culture towards high yield, high demand crops. 18. To ensure that the Plan is satisfactorily implemented and the pro- cess of planning goes beyond the present Plan, the Jordanian Government has submitted a long-term planning project for UNDP financing of foreign experts to assist the National Planning Council and ministries in their new develop- ment effort. This project is based on the recommendations of the World Bank Advisory Mission which visited Jordan in March 1971. A major emphasis is placed on sectoral programming and improved project preparation. 19. The recent changes in planning procedures should improve the struc- ture of planning by setting priorities, ranking projects, coordinating plans and budget preparation. Plan formulation should now incorporate project preparation with estimates made of recurrent expenditures arising from the implementation of such projects. At present the staff of the National Plan- ning Council is neither large nor experienced enough to undertake the new re- sponsibilities given to the Council and the proposed UNDP planning project has been designed to provide experts to strengthen the National Planning Council and other ministries in such subjects as macro-economic planning, project preparation and sector reviews, budget methods and project reporting and evaluation. But unless the National Planning Council staff itself is strengthened the advisers will be of limited value and thus it is important that the National Planning Council follow up on its reorganization by obtain- ing extra staff-who can act as counterparts to the advisers and who can help to develop the planning process. -8- 20. Planning will only be effective in Jordan if the National Planning Council is given sufficient political backing to enhance its leadership, its standing and its prestige within the Government. Foreign advisers can help but Tordanians mist take the basic responsibility for the development activi- ties in the NPC and ministries. The Government will need to strengthen the staff of thp NPC and of nlanning units by adopting more appropriate recruit- ment, training and remuneration policies. Without such effort new laws and reorganization will have limited effect. -9- IV. POPUTLATION MANPOWER AND EMPLOYMENT 21. It is difficult to establish a reliable estimate for the total num- ber of persors curren.tly living in Jordan. The last complete population cen- sus was in 1961. Since then the West Bank which contains almost one-third of the total population was lost, while large refugee movements after the 1967 hostilities have further clouded the picture. 22. The population in the occupied West Bank is presently estimated at about 700,000 persons. This 'Ls considerably less thaan the number of people who lived there on the: eve of the 1967 war (approximately 950,000 persons). No accurate information is available on the magnitude of subsequent refugee movements across the Jordan river. Estimates made immediately after the war indicate that about 320,000 have left their hoomes and refugee camps on the West Bank and fled to the eastern part of the country. The United Nations Relief and Works Agency (UNRWA), however, reports that only about 224,000 persons have been added to their refugee camps on the East Bank. The dif- ference may be partly explained by the fact that a number o' refugees have found accommodations outside the camps, while others have returned to their former homes in the West Banik. 23. In the circumstances, the recent official estimates which place Jordan's total population in 1971 at 2.42 million, and that of the East Bank at about 1.72 million, are subject to wide margins of error. Projections o' the future labor force, educational enrollment, housing requirements, etc., derived from these estimates could prove to be misleading. Tne Household Manpower Survey, begun in May 1971 may, eventually, allow corrections to be made, although first results suggest that a revision of the sample frame may be necessary. Accurate data may not become available until the full census, postponed from 1970 because of the disturbances, is carried out. 24. The recording of births and deaths is, at present, inadequate. A more comprehensive record of births and deaths might indicate a lower rate of population growth than implied by the official figures, which show a birth rate of 45.6 per 1,000 and an unrealistically low mortality rate of 4.8. However, the authorities in the Ministry of Health believe that the actual death rate may be between 17-19 per 1,000, giving a natural rate of increase of population between 2.6 and 2.8 per annum. Although this figure is low compared to the rates of population growth experienced in Jordan in the recent past, it seems to be a more realistic estimate of the present situation and is in line with statistics of other countries in comparative stages of development. 25. In. spite of the high rate of population growth in the past, the population problem does not seem to have received adequate attention from the Government. While Government expenditures on medical services, both preventive and curative, have effectively led to a decline in the death rate, little is being done to control the high birth rate. The existing Family Planning Program is small in size and is largely organized on a private basis. Its efforts are mainly directed to the main urban centers - 10 - with virtually no attention to the refugee camps. Although there is a keen awareness of the population nroblem in the Ministry of Health, it is not likely that population control will emerge in the near future as a major con- cerr. of .- the t-v---m mt. Labor Force arnd EMploym ent 26. As with total Dopulation, an assessment of develonpments In the labor market is highly conjectural. Several sectoral surveys have been car- ried out since 1961. But these covered 4n tbe main the larger establishments (10 or more workers) which are responsible for less than 30 percent of total employment ('excluuding the- armed forces). A comprebensire -verage of all non-farm establishments was attempted in the 1970 manpower survey. In the agricultural sector, a population and labor force survey was conducted in 1967. A household sample survey begun in May 1971, would eventually throw more light on the man-power sLtuatLIon. A tentave picture of the labor force and employment structure and trends is given in Table 2. 27. On the basis of available information, some general observations can be made at this stage. First, governmenit services (including defense) and trade have absorbed much of the increase in the urban labor force, since 1961, while relatively few employment oUpportunities were created in the mod- ern productive sectors. These have been unduly limited by the introduction of capital intensive techniques, encouraged by direct or hidden subsidies, foreign aid practices and other inherent biases towards capital/labor sub- stitution. Secondly, open unemployment seems to ha-ve risen to about '4 per= cent of the labor force. In addition, there is widespread disguised unem- ployment and under-employment especially in rural areas. - 11 - 1.-1-. IeI T ABOD t'fDrV AMTh 40T vAV M'T UV 1'rAAMT(r C1V('TAD /1 Population Establishment Census Survey Nos. in Nos. in UVU I. _VU /0n .O uuu tj A uuu s- A A. Empioyment by Sector 1. Agriculture 73 33.4 115 * 32.9 2. Mining and Quarrying 5 2.3 3 0.9 3. Manufacturing 17 7.7 21 6.0 4. Electricity 1 0.5 1 0.3 5. Construction 22 10.1 7 2.0 6. Wholesale and Retail Trade, Restaurants and Hotels 17 7.7 23 6.6 7. Transport, Storage and Communications 8 3.6 11 3.1 8. Financing, Insurance and Real Estate and Business Services - - 4 1.1 9. Community, Social and Personal Services 29 13.3 34 9.7 10. Not specified (including armed forces) 31 14.1 82 * 23.4 Total Employment 202 92.7 301 86.0 Seeking Work 16 7.3 49 * 14.0 B. Labor Force 218 100.0 350 * 100.0 C. Population 901 1668 Labor Force Participation Rate 24.2 21.0 /1 East Bank only. * Estimates of Manpower Planning Adviser to JDB. Agricultural employment is assumed to have increased at 3.5% per annum above the level found in the 1967 Survey of Agricultural Population and Labor. Thirdly, open unemployment would be substantially higher but for the low participation rates among women (7 percent) and young males. Enrollment levels at secondary and higher level institutions are much higher in the 15 to 24 age bracket in Jordan than in most countries of a comparable in- come level. Even so, preliminary results of the household survey discloses an unemployment rate of 12.8 percent for the 15 to 19 year old males and 13.3 percent for the 20 to 24 year olds. 28. Although no comprehensive data on productivity and income dif- ferentials could be obtair.ed, the infrequer.cy of work fo-r daily pnai- unskilled labor and the proportion of farmers with very small holdings, suggest that disparities between the var4ius regliorns and occupational groups are considerably greater than emerge from simple comparisons of quoted wage rates or calculations of aver- GDP -r capita for bra sectors. The family expenditure surveys conducted by the Department of SLtlastics seem to bue partlcularly unrepresentIative. Over On perce.t of households in Irbid and Aqaba are said to have separate bathrooms and over In L__±± 1 ~ . ~ Li 11 - f~~~l ove 5 percent te'Lev'Li'Lor sets. Yet thle s%-co-U-Uotio. n.. ergency camps consists of one room of 3 meters square.per family and the housing iLn villages and shanty towLis Ls ofiten extreiel.L prLimitive. A pLUjJeL.LJ designed and controlled familv budget survey on a continuing basis needs to be set up before tle p1asning 8uthori; =e car. JL LU to chart progress towards a more equitable distribution of income. 29. Finally, it should be noted that the employment situation among thle refugees is far froiu cdlear. LThe May 1971 ho use11oLU survey s Kn0-W-L. tU have missed out some of the camps because of the unsettled situation. Apart from the emergency camp population, Lt is likely that most of the refugees have found some form of employment. If this were true, there might be a case LoL a mIadJUL poUrLdUt LU ru-pLrVe ±LvILn cnU IU±LtLIon and L-U poL'Ue JUoU i&t situ for the residual core of refugees (100,000) living in these emergency camps, convertlng thLem into more self-LcCILdaineU Lownships . This proposal seems to have strong Justification on both social and economic grounds. - 13 - V. DOMF.TTG FTNANGE Public Finance 30. As a result both of the limited tax base, and of heavy expenditure rLe qu IL rem,e n t s result in rtg fm the CLrn*m.*enJti effort- to pro..ote t c co unt .J Lr Jra- economic development and the maintenance of a sizeable defense establishment, the CentlraI Gover--n..ent bug has had to rely exer.f4,vel,, on fo reign as4si- LIRE '..sCLIL~~~~~~~~~~~~~~~~~~~~~~~~~L %Y. '.'V=L L*5II~ Lfl. ~ - , L . KC n,..--. LJ a ~. y L~.O V - flf- - -a -5-l CO. tance which consisted largely of direct budget support (grants), but also .LuI.LUUeU Lechi.lcal assi-Lostance andA developr.,ent loans. In the four fiscalt years preceding the 1967 war, foreign assistance for the current budget support a-veraged so,ue JD 15 mj"'lon per year, rsis.rg to 40 Ar,,lir ayar '96f-7 ~UEI Li I.) IIL.L.L.LULE EL A.L ±'I LUiJL -+U milioLL aUI yer Ln 196tl and 1968 but falling off to JD 35 million in 1970 and 1971. Together with growlng oomestic reveniues LZiLs inassLive Lncrease in11 f0reeign a5X2isaLkll IiC more than offset the steep rise in current expenditures. As a result, the surplus on the current budget has been significantly higher in the post war period than before 1967. Table 3. SUMMARY OF THE CENTRAL GOVERNMENT BUDGET (in million of JDs) Average 1963-66 1967 1968 1969 1970 1971 /a Current Receipts 38.6 65.9 66.4 70.9 65.7 71.4 Domestic Revenues 23.3 25.5 26.3 32.5 30.3 36.1 Foreign Assistance 15.3 40.4 40.1 38.4 35.4 35.3 Current Expenditures 34.5 44.7 57.2 65.2 59.0 61.3 Current Surplus 4.1 21.2 9.2 5.7 6.7 10.1 Development Expenditures 8.8 23.5 23.3 23.2 21.7 23.7 Overall Deficit -4.7 -2.3 -14.1 -17.5 -15.0 -13.6 Domestic Financing 0.2 8.7 12.6 12.7 9.9 Foreign Financing 4.3 5.4 4.8 2.3 3.7 /a Preliminary estimates. Source: Statistical Appendix Tables 5.1, 5.2, 5.3 and 5.4. - 14 - Domestic revenues are derived mainly from taxation, the bulk originating from indirect taxes. Customs and excise duties account for around 75 nercent of indirect tax revenues. Direct taxation is relatively unimportant as a result of low incomes and a low labor force participation rate (21 nperent?. Corporate and individual income taxes are the principal sources of direct tax revenues. -Individual income tax is progressive, with a rpiling of 40 nercent on incomes above JD 2,800; while corporate income is taxed at a flat 35 percent rate. Farm income is tax exempt. Tax evasion is w:idePnreid, hnwever, although collection rates have improved somewhat. Non- tax revenues account for around 30 percent of domestic revenues. These in- clude interests and nrofits derived from enternrises with government partici- pation, transit fees paid by Trans-Arabian Pipeline Company (Tapline), and other .m,-1a11laneo%I1 4tpms 32. Despite declning budelt spinnort (aqnd Pmergencv aid). total revenues increased from around 36 percent to 38 percent of GDP between 1967 and 1971, as domestic revenues rose from 13 percent to 17.5 nperent of GDP over the samQ period. In absolute amounts, domestic revenues rose from JD 25 million in 1Or7 t-o TJ 36 m4114in 4in 1071 wh4lo fnoregArn revens declined rdring the name period by JD 5 million, Government revenues fell in 1970, as a result of the civil disturbances, but t-hev recovered i-n 1971 and are exnected to rise further in 1972. 33. Defense and emergency expenditures rose substantially in the im..ed iate post-war perio^d, 1967-69, hbut hr.ve deci,ned thereafter (Tnble 5 4 in the Statistical Appendix). The Government has been successful in re- ducing the rate of .6-r.th of current expenditures from around 27 nercent in 1967 to around 4 percent in 1971. Development expenditures also rose steeply in 1967 but I - --lb. U rane A o or less stale in the years thereafter. Since 1968 they have substantially exceeded the surplus on the current budget. 34. The tight financial position of the Government is apparent from the large overall deficits wh*.i.c zveraged around millionL in* recent -ears. Only a relatively small portion of these deficits was financed by foreign capital aid. o cover tLlie reminllng gap, the- Gove.um2nt ha - 4d .a down ts cash balances and borrowed extensively from the banking sector, with net in- debtedness of t'he GoverrLinent at elhe endU ofL 197/1 estmIatedLU at appro xuiately JD 30.6 million as compared to JD 8.5 million in 1968. Of the former figure, around JU 21 million are Treasury Bills and 3D 3.7 million of Central Bank advances. To meet the budgetary crisis the Government has taken a number of measures designed to reduce current expenditures such as the disconi.lnuation. of payment of around 80 percent of the salaries in the West Bank, hardship allowances for war, payments for housing and compensation for damages suffered during the civil disturbances of 1970. 35. Prospects for 1972 and future years are uncertain. It is clear that Jordan will continue for the next few years, to need foreign budget support of about the same magnitude as in recent years. There is little scope at present, - 15 - for further increases in domestic revenues. If the Three-Year Plan, however, is well conceived, prepared and implemented, it may strengthen the economic base of the country thus leading to an eventual reduction in the levels of budget support required through the development of productive sectors and the broadeninf of the tax base. Money and Gredit 36. In 1967 and 1Q68 money supplv grew rapidly as a result of a high level of public sector expenditures supported by high levels of foreign budget support. In 1969 and 1970 increasing bank credits to both the public and private sectors became the major factors influencing monetary expansion 4hich., hever, sloaed dow significantly in 1Q71. But, althouah the high rate of monetary expansion of the post war years was not accompanied by equivalenlt. rate of growh in. NP, substantial -rice stability prevailed during this period. This was due partly to the liberal import policies that were in efL,Lect througLout t.he period ard partly to a sharp incrase in 1liqidit preference that reflects the economic and political uncertainties following the -war. .37. AMfter an a-verage growth ofL 15.4 percent per year during 1960-66, and 17.1 percent growth in 1966, commercial bank credit declined in 1967. Since then, credit has grown by 4.8 percent per year on average. This growth has been due to extensive credit liberalization efforts of the Government with the intention of stimulating investment. The civil disturLbances of 1970, how- ever, added to uncertainties leading to a decline in commerce and trade which together with the construction sector accounted for around 62 percent. of total commercial bank credit. A summary of sectoral distribution of commercial bank credit outstanding is given in Tabie 4. Table 4. SECTORAL DISTRIBUTION ObF COMM'ERCIAL BANKS CRET)TT OUTTSTANDTNG /1 (T ml m1 I tIotim r Jno,n) End of Period 1967 1968 1969 1970 1971 Commerce and Trade 17.4 17.1 19.1 16.9 19.0 Building & Construction 5.0 6.1 7.1 11.2 10.5 Industry 4.2 4.0 4. 4. 4 Municipalities & Public Corporations 2.9 3.7 2.9 2.8 3.0 Other 9.4 10.1 12.2 10.6 9.8 Total 38.9 41.0 45.4 45.5 46.9 /1 Including capitalized interest. Source: Statistical Appendix, Table 6.6. - 16 - Table 4 however, does not distinguish between new loans and capitalized interest charges in the aggregate fiaure for loans outstanding, as these figures are not available. Thus, considering the severe debt repayment nrohleiis of the nrivate sector, and the decline in domestic investment in 1970 and 1971, the increases in debt outstanding reflect a low level of new debts contracted.- VI. THE BALOCE OF PAYMENTS 38. Rpepnt dnmpetir deve1nnments are reflected in the bnlance nf payments where substantial deficits have resulted from declining receipts from expnortc and trancfers. Tn 1971 for the third siuccrpqsiup vpnr both the current account and the balance of payments were in deficit. The deficit on the current account in 1971, estimated at TD 24 million, is the largest in the history of the country, and results largely from the increased trade AdF4i-t (TA 6r million i- 1071), compar-d toJ T53 mllo4114- 4 1Q99Q adA the reduced level of current transfers from abroad. Despite a considerable in- crease in cap4tal 4inflows -A4ct -4, Lthe4 defl Ln th balae of pay..nts in 1 i estimated at JD 12 million. In comparison, the payments deficit amounted to JD 11 million in 1969, and JD 1-1/2 million in 1970 The Current A-nccount -9. Jordan has tradItIonally e rnced a 1-ge trade L- ,1''t- b'.oth a result of low levels of exports, and in response to the high import level financed mainly from transfers and re.ittances. Eptorts are 1largelLy confined to phosphates, vegetables and fruit, although after the 1967 war there has been_ a rapid --owth in the expr -f igrettes. TIr.prs inclule th-e `hole -Ct11 1 1. ajJJ..t r*. UW LII Lii ~Llt C1A*iJ I. U L.s.r,aLC L LCi_- . .l}*JLp L. A.t1LL.L u L.Lt WLIIL spectrum from food products and raw materials to manufactured goods, machinery and transport equipr..ent. L%bVUtL LtLLtree uaj.rLt.eLs UL JUL UOL s eAULxLpo aLr to LV Arab countries, both within and outside the Arab Common Market, with most of lith Ubiailantc hUiuig, LU Lnia aidiu tII-e LEIa st EurOLtead Lcur.tries . I'LOJUL sources of imports are the Arab countries (20 percent), the EEC countries (20 percent), TT 1 A TT C' A 1 U L\ and U.S.A. (25 percent', thiie 0Last European Bloc countr.i ( percent), and Japan and India. 40. Prior to the 1967 war, the trade deficit averaged JD 44 million. During this period, merchandise exports grewq by 17.5 percent per year, on average, while import growth averaged 7.8 percent per year. In the post-war period exports have stagnated. Average import growth during 196i-70, nowever, remained at around 6.5 percent per annum, so that the trade deficit grew from JD 43 million in 1967 and 1968 to JD 53 million in 1970. Tne closure of the Syrian borders in the second half of 1971 further aggravated the situation as the major outlets for exports were rendered inaccessible. In 1971, theretore, the trade deficit is estimated at around JD 65 million, with merchandise ex- ports of JD 1I million. imports in 1971 were 17 percent higher than the previous year. To compensate for adverse effects of the closure of the Syrian border on exports, the jordan Government obtained a U.S. $4.5 million compensatory financing loan from the nFl in 1971. Table 5: Jordan: Sunmary Balance of Paynents 1960 and 1966, 1967-71 11 1L960 1L966 1L967 19658 1969 1970 1971 / 1- wlorts ]L2.79 3-2.06 '.77? 90 31.17 30.17 n.a a. Merchandise (fob) 3.9TT J0.40 1.33 12.17 b. Non Factor ';ervices 8.84 21.66 L3.4L 11.64 16.42 18.00 .n,.a 2- Im;cports, - 47.O'1 76.60 63.73 80.63 108.82 89.14 n.a a. Merchandise (cif ) 1 25( T) 23 7.3 76.31 b. Non Factor ';erviLces 4.2f, 9.3h 9.50 23.33 4'1.28 24.41 n.a 3- Resource Balance (=1-2) -34.26 -144.5 -38.99 -54.73 -77.65 -59.77 -72.76 4- Net Factor income 7.39 :L5.11 L1.2,4 10.37 14.03 12.64 131.17 a. Interest; and Dividenids( net ....65 ).T 'hT 3 .92 6.04 b. Remi.tt.ance 6.13 1O.09 6.55 4.10 6.92 5.54 l.9i9 c. Oil Transit Dues o.6J4 1.4'2 1.08 1.35 1.07 0.98 ,1.43 5- Unrequited Trazisfers 20.83 -L6.40 53.93 54.48 47.34 40.22 36.05 _ P__ -.._ .3_ _5_ a) Private -. 4.2:L 2T 11.55 1.14 1.13 b) Official (Net) 1L6.45 1L2.1'3 51.58 53.07 45.79 39.08 34.92 6- Balance on Current Account *-6.o0 -:L2.86 26.118 10.12 -16.28 -6.91 _23. 54 7- Direct Investment (Net:) 0.142 0.30 0.0O4 -o.06 o.80 -1.35 -1.28 _Mui _ ~~ on ___ __ .____ _ __ 8- aLium & Lory ILerm loa-s- 1.50 4.91 1.62 4.48 3.91 0.76 8.54 a. Disbursement;s n.a n.a 33.7 5.50 T.71 2.13 n.a b. Amortizatiorn n.a n.a 0.97 1.02 0.80 1.37 n.a 9- Other TransactiLons 3.67 -i1. 40 0.32 0.54 0.63 o.80 0.93 10- ChaLnge in Reserves (increase) -0.668 -8.87 -33.19 -16.33 10.92 1.52 11.83 11- Net, Errors and Omissions 1.13 5. 12 5.03 1.25 0.02 5.18 .3.52 Source: StatisticEL1 AppendLix, Tabl]e 3,1 1/ Preliminary - 18 - 41I Among inv sibles, receip-ts from net exp-orts of nonfactor services grew at around 18 percent per year during 1960-66, mainly as a result of rising income from touri.s. '(-Ver the sam., period, factor inrcom.e from abroiad, consisting mainly of remittances from Jordanians, rose by around 13 percent per year, so tLlat tle netL baLance on serices grew at aroud 15 percent per annum. In comparison to the average deficit on trade of JD 44 million in 1960-66, the net balance on services averaged JD 19 million, of whhich some JD 11 million was accounted for by factor income from abroad. The average deficit on goous anu services ofi ID 25 million was Largely offset by current transfers from abroad (mainly to Government) which averaged JD 19 million, so that the deficit on the current account was of the order of ID 6 million, on average. The war had a severe impact on receipts from invisibles as the loss of the Wqest Bank drastically reduced both revenues from touruism and re- mittances from Jordanians working abroad. The latter fell from JD 11 million in 1966 to ID 5.5 million in 1970, after recordLng an average ar.inual growthL of 8.7 percent during 1960-66. During the period 1967-1971, the net balance on services averaged about ID 3 million per year. 42. Current transfers from abroad have been a major item in the balance of payments, averaging around JD 19 million during 1960-66. As a result of the government efforts towards domestic fiscal independence, however, trans- fers as a percentage of GNP had declined from around 20 percent in 1960 to around 9 percent in 1966. The United State3 was by far the major donor (45 percent), followed by United Nations relief agencies, and, increasingly, Arab governments. In the immediate post-war years, spurred by the Khartoum agree- ment, the Arab governments rapidly increased their aid, contributing JD 83.2 million in 1967 and 1968, while U.S. reduced its contributions to ID 7.6 million in 1967 compared to a 1964-66 average of JD 13.5 million. With stagnation in national production, transfers as percentage of GNP rose to 24 percent in 1967 and 31 percent in 1968. Between 1968-70, U.S. contributions continued to fall to around ID 1.3 million per year, while political diffi- culties reduced Arab government support from JD 46 million in 1968 to JD 33 million in 1970. With the suspension of Libyan and Kuwaiti aid, tollowing the civil war in 1970, only greatly increased U.S. support, of around JD 13 million in 1971, prevented a crisis in the balance of payments. Transfers continued to decline in 1971, and are estimated at JD 36 million. The Capital Account 43. During 1967-70,, medium and long term borrowing amounted to JD 10.8 ,,illion or some JD 2.7 million per year. The bulk of these represented bilateral government lending, while the balance was accounted for by dis- bursements from IDA credits, amounting to JD 1.5 million, or some 14 percent of total medium and long term borrowing over the same period. Direct in- vestment and short term capital flows have been negligible. 44. The principal capital donors during 1967-70 have been, Saudi Arabia, United States, United Kingdom, and Germany, which together contributed 75 percent of the total gross capital inflow of JD 10.8 million. The Government of Kuwait and IDA contributed the balance in roughly equal proportions. The British and Saudi Arabian loans have been interest free, while interest payments - 19 - as percentage of disbursed amounts during 1966-70 have been around 3.6 percent on U.S. and German loans, and 2 percent on Kuwaiti loans. On average, interest on government loans has been around 1 percent of disbursed amounts, average maturity has been around 24 years with 6 - 8 years grace. For 1971, net capital inflow is estimated at JD 8.5 million, of which around JD 6.5 million represents financing of the purchase of two Boeing aircrafts by the Royal Jordanian Airlines. This amount was financed in equal parts by the U.S. Eximbank and some foreign commercial banks. The Eximbank loan is at 6 percent interest with a 7 year maturity. External Debt and Reserves 45. External public debt outstanding at the end of 1971 was JD 64 million (US$178 million) of which JD 17 million (US$48 million) was undisbursed. As a result of declining export revenues, debt service as a percentage of earnings from exports of goods and non-factor services, increased from 4.0 in 1970 to 6.3 in 1971. The debt service ratio, however. is expected to be between 12-15 percent in 1972, mainly as a result of the Boeing Loan. 46. The balance of payments pressures are apparent from the decline in foreign exchange reserves by about JD 24 million since 1968. Despite this the reserves of the Central Bank of Jordan stood at JD 89 million at the end of 1971 equivalent to about fourteen months of imports at 1971 levels. Al- though this appears high, it is necessary to realize that because of the un- certainties in the flow of foreign exchange receipts resulting from nol1itical factors, Jordan finds itself in a position where a high level of reserves is required to sustain public confidence and support longer-term ecrnomic development. VII. PRnSPECTS 47. Jordan's meager resource base has made the economic development of the country a difficult undertaking. The situation arising out of the Juine 1967 war and the civil disturbances of 1970 added further complications and reuilted in widespread disruintinns nf the economy. After the nomalization of the internal political situation in 1971, the Government has begun to shift itc att-entinn tn the nrnh1emT nf eonnnmir davlnnpment, and the Three Year Plan, to be published in the Summer of 1972, is expected to be the first step towards the-fthe ecnomic ptnt-ial of Tordan. 48. The nuerridina deuelnpment objective .n TJordan should be an eventual phasing out of the reliance of the economy on budget support. This could be achieved, on the one hands by establishing a firm budgetary control on the rates of growth of recurrent expenditures and, on the other hand, by the development of the productive sectors in an attempt to increase domestic revenues, foreign exchange earnings and employment opportunities. 49. Among the major productive sectors, the development of agriculture is of high priority. Agricultural land and water are the most valuable of the country's natural resources, and their further development would not only provide additional production and exports, but aiso reiieve tne proDiem of rural unemployment both open and disguised. The country at present is importing the larger part of its food requirements and is not exploiting tne export advantage it enjoys in certain crops. With the successful development of its agricultural potential, Jordan couia supply most or its fooa require- ments e.g. wheat and meat, and at the same time develop exports of citrus and other fruits for which markets exist in other middle Eastern Countries - particularly the Gulf States - and possibly Europe, too. 50. Development possibilities exist in all the three main agricultural fields - irrigation, rainfed farming and livestock. Irrigated farming in the frostfree lowlands of the Jordan Valley holds considerable promise. The key to this development is an increase in the irrigation water which will be made available through the new dam on the Zerqa River. To maximize economic returns from the increased irrigation water, a reorientation of irrigated agriculture towards citrus and other high market value fruits should take place. On the other hand, development in the rainfed areas should aim at increased cereal production as a means of import substitution. Land consolidation, the storage of rainfall by soil conservation and application of modern cultivation methods are vital to improving cereal fields. Very little increased production can come from expanding acreage. 51. The development of the livestock industry will directly depend on efforts to increase the productivity of the national sheep and goat flock. Attempts to expand submarginal cereal cultivation into the best rangelands reduce their carrying capacity. Lack of grazing control further erodes existing range lands. Tackling these two problems must be a high priority of development policies within the livestock subsector. In addition to improving the productivity of the flock through range development, increased output can also be achieved by organized marketing of weaned lambs, whereby they will be channelled for further feeding on irrigated fodder and cereal crop by-products. Despite the small number of cattle in Jordan at present there is scope for the development of a dairy industry, particularly near the larger centers of population. 52. Although agriculture will continue to be the most important productive sector for the foreseeable future, the mining and industrial sectors also hold a good promise for further developments. Phosphate rock is presently Jordan's most valuable known mineral resource and high quality phosphate rock is the country's main export. But to realize the full export potential of phosphate exports, new markets in South Asia and the Far East will have to be developed. If such new markets are captured, the enlargement of the present productive capacity from 1.25 million ton/year can be justified. The possibility of constructing a phosphoric acid plant also deserves investigation. If such an industry proves economically viable, Jordan will be well advised to seek foreign partners willing to take equity participation and to provide management and marketing services. - 21 - 53. Given its resource base and its geographical location, Jordan might find it uneconomical to launch, with or without foreign aid, into a program of promoting la'rge-scale canital intensive industry. Small scale. labor intensive industries working for the local and neighboring Arab markets and benefitting frowm the nediqunate upply of labor. most of which is literate; could be an important factor in the country's economic development. Their optimu developme.t, heoever, calls for a rpnripntation of current Government industrial policies which tend to help channel capital and technical assistance towarlus relatively capit-al-intensive projects that generate a lnw aT.nlnvmpnt volume and which, with virtually unlimited protection from foreign competition and monopolistic or quasi monopolistic powers on the home market, can survlve and even prosper regardless of their real contribution to national welfare. if industrial policies are to be adapted to reflect fth aresorces ar. the problems facing the Jordanian economy, then a way must be found to give direct and inuirect a'd to sm.all scale industries. One possible way of achieving this would be by giving encouragement and providing finance to the Industrial Development Bank to set up special services to cater to the needs of small units. 54. The appreciable levels of foreign budget support since 1967, the low levels of growth of the producti-ve sectors and the Government's concern with the problem of unemployment, led to high rate of growth in employment in services, particularly within the public sector. Th,e 1970 Establishment Survey revealed that Services (mostly public) account for more than 30 percent of the total labor force. But with the financial difficulties facinrg the country, it is clear that the Government will not be able to absorb more and more workers in its payrolls. Tnere is a need to take the labor situation into account when planning for the future development of the productive sectors by adopting morV labor intensive techniques and offering incentives for economic activities that promise to generate more employment. 55. To realize the full development potential of the Jordan economy will be a long term process. In the meantime, the Three Year Plan will be a first step towards that goal. During the Plan period it is expected that Jordan will continue to need budget support of about the same magnitude ofr the recent past (around JD 35 million a year). With development highly dependent on external assistance, the extent of which has yet to be determined, it is very difficult to project the overall growth possibilities in the next few years. Barring a repetition of the 1970 civil disturbances, GDP could grow by 5 - 7 percent per year between 1973-75. From recent experience gross investment, to be channelled mostly to agriculture and industry, could be around JD 35 million a year and national savings between JD 15-17 million a year. The deficit in the current account is projected at between JD 18-20 million a year, with a trade deficit of around JD 60 million and a net surplus on services of around JD 5-7 million a year. In view of the economic situation in Jordan and the country's inability to service addition- al debt on conventional terms, capital aid should continue to be provided on soft terms. - 22 - ANNEX: MAJOR ECONOMIC SECTORS A. iGKR1CULTUKE Recent Trends in Output and Resource Use 1. Agrictuiture, including livestock production and accounting tor 18 percent of GDP is the largest productive sector in the economy and the main source of livelihood for one third of the labor force. Since 1967 the continuing unsettled conditions which existed in Jordan have had a direct effect on the agricultural sector. The war whicn resulted in the occupation of the Jordan Valley, the subsequent shelling across the valley and the civil disturbances of 1970 prevented normal farming operations taking place over a large area of the country. Farmers have returned to their holdings in the Jordan Valley atter the normalization of the situa- tion in 1971 and indications are that output after the very low production levels of 1970 have increased to the levels achieved in 1969. 2. Out of a total 350,000 hectares of cultivable land, at present about 25,000 hectares of land are irrigated. About 76 percent of this irrigated land is located in the Rift Valley, i.e. the Jordan Valley, the lower end of the side Wadis and the Southern Chors. The greater part of the cultivable land, mostly spread over the highlands to the north- west and the southwest of Amman, is dependent on limited and irregular rain-- fall to produce crops. When the security position permits the whole of this area is cultivated. There is no possibility of expanding the area of land which can be cultivated under rainfed conditions. The only expansion pos- sible is by increasing irrigation of some of the existing cultivable land and by irrigating limited areas of the desert. 3. Water for irrigation is a vital element of Jordanian agriculture. In order of magnitude, surface water for the Jordan Valley comes first among resources, but the two main rivers, the Jordan River and its main tributary, the Yarmouk River, have to be shared with other riparians. It is assumed that the average annual flow 1/ released into the Jordan River, at the gate outlet of Lake Tiberias, has been reduced, after 1963, to about one-fifth or less of its previous average, and that its salinity, in the low water season. has increased to a dangerous level. This is the result of the Israeli diversion of Jordan waters towards the coastal strip of Palestine. EAst Jordan is practirallv no longer using the Jordan River- but an important part of the Jordan Valley irrigation is dependent on continuous run-of-river diversrinn frnTn the Yarmouk- Repairs of war damaaes at the Yarmouk intake structure or close to it are proceeding. The annual flow of the Yarmouk averages 444 mm3; the mini.m.um anniinl flnw to he expected three years out of four is 360 Mm3. 1/ 538 M4m3 before 1953/54. 4. The Yarmouk River, which originates in Syria, was supposed to be -wed there to a l ovtent fnor irigati4n, but the Yarnok plateau has been partly occupied, in the course of the June 1967 war, as well as the Syrian part of the buildingt sitJe of the Ya.izouk storage da.. m XXflid/Mukhei dam). The second main tributary of the Jordan River, located entirely in Tat Joran, the Z7erqa RI4ver, is not yet useA t-o i1ts CuIl capacity. It-s EastL JLurd~ I.. " 11 6C L.J C. L L.L J. 4L.L L kiL..Ly. L 4 average annual flow is 85 m.3; the minimum flow to be expected three years out of f:our is4 68 I MU3 The - Zer ar d UC whc s unAder construction -wlll enab-le 'JL I. U L'AL .L VU --IJI ~ - * '4 ,.Ia W&L.L± L1 LA1UL i.IAL U l L.LJL Wi.L.UJ CZLUj.L Jordan to use the waters of the Zerqa River more effectively. The total mini.Mum annual flow of the main nine side wadis, to be expected three years out of four, is 98 Mm3 the average being 111.6 Mm3; storage dams have recently been built on three of them. Similar comprehensive hydrology surveys and studies have been conducted on the other Wadis. 5. Underground water is generally tapped by wells; usable springs are relatively small in East Jordan, and, with the exception of the Jerash area, are generally located in deep narrow valleys. The UNDP (SF)/FAO Proj- ect JOR 9 has evaluated the economic potential of important aquifer systems in the area by compiling and reviewing data on more than 400 existing wells and by collecting data on 120 additional exploration or test production wells. Underground water is available b7 pumping when needed and at a relatively low capital cost which may counter-balance the higher maintenance and operation cost. According to the Interim Report of project JOR 9 of 1971 recharge to aquifer systems totals 449.5 Mm3 per annum but for some of the main re- charge mounds, the Ailun mound for example. with 110 Mm3 per annum, there are only few localities where water can be intercepted at an economic pump- ing depth before it reaches the valley. 6. In eeneral. land for irrigation is not a limitine factor in Jordan. but adequate land is not always available in the areas where the limited water resources may easily be conveyed. Comprehensive land surveys have been con- ducted with a view to the further developments of the Jordan Valley and of the Southern Ghors; a series of areas have also been surveyed with a view to de- veloping the use of the recently investigated aquifers. In the Jordan Val- ley, the terraces of which are made from old sea deposits, the maior problem is that the subsoil is in general a salty marl: a saltpan, still under tradi- tional operation exists close to the experimental station of Deir Alla, on the East Ghor, at 45 km to the north of the Dead Sea. A thin superficial cover of soil is sometimes the onlv non-saline arable land so that erading the land for irrigation may be worse under marginal leaching prospects than providing additional canals to fit the existine tonogranhy. In the desert area, land salinity may also be a problem in certain localities, but on rainfed lands salinity does not in general increase with depnth. Drainage becomes difficult when the area is flat or like El Jafr, at the lowest part of a denression: vertical drainage may he fepfih1e hut may dangerosaly in- crease with time'the salinity of the resource aquifer. 7. Limited water supply has enforced a cropping pattern oriented tow.N,ards ar.nnl-, crops, mostl,y irrigated -getables which. are the - mnproduC.t of Jordan's agriculture. Vegetables make up 80 percent of the crops planted L- -irrigation in the Rift Yalley of the Jordanr 1iver, ar..d have ac.ted - 24 - for 30 percent of Jordan's total domestic exports between 1967-70. Tomatoes are the most important vegetable grown and exported. They are mostly produc as out-of season winter crops and made up 55 percent of the total vegetable exports during the period 1967=70. But there is a defin.ite d-ww-Ad tred", both in total value and in percentage, tomatoes contribute to total domestic exports. Tnis is in part d ue to increased production. in other ne4g.hbour4ng Arab countries such as Saudi Arabia. Citrus fruit and bananas together make a major contribution to Jordaan's total fruit production. The growing of both these crops is almost entirely restricted to the Jordan Valley. Despite a drop in output during the last four years both crops will continue to play an important role in the country's agriculture. 8. Rainfed farming on an estimated 300,000 ha. of land takes place in the highlands of Jordan to the North West and South West of Aman. Aver- age annual rainfall varies between 250 mm to 600 mm. Suitable soils exist in these areas for cereal production mainly wneat and barley. Wneat accounted for 80 percent of the cereal acreage in Jordan in the period 1967-70. Aver- age annual production of wheat during this period was 142,000 tons while an- nual imports into Jordan averaged 160,000 tons a year. Since all suitable lands have already been cropped and there is-'no possibility of expanding the area under cultivation, an ipcrease in total production of wheat can only come from an increase in average yields. 9. Jordan has 7.5 million hectares classified as range land and desert of which only 1.1 million hectares can be considered as true range lands with vegetation that has some development potential. Jordan livestock population consists of 664,000 sheep, 350,000 goats, 40,000 cattle and 9,000 camels. The sheep and goat flocks which are by far the most important parts of the livestock sector, follow the same management patterns that have existed for centuries. It moves uncontrolled over the range lands of the country relying on the natural growth on the range lands for its food during the spring, on fodder crops and cereal by-products during the summer and on a combination of all three during the autumn and winter. The uncontrolled grazing pattern is further complicated by the considerable movement of the Syrian and Saudi Arabian sheep flocks into Jordan. 10. The introduction of tractors and heavy cultivation machinery has had a very serious effect on all these sources of food. i. It has meant that large areas of previously uncropped range land with low rainfall has been ploughed in an attempt to reap a low yield cereal crop. In addition to the destruction of the vegetation on the best range area soil erosion has seriously increased and in most years no cereal crop is harvested. ii. It has meant a reduction in the planting of fodder crops in the highlands because these are no longer needed as food for draught animals previously used for cultivation. This reduc- tion in fodder sunnlv has resulted in a downward trend in flock numbers as well as poor levels of production. - 25 - 11. Although the unsettled conditions which existed in Jordan since 1967 have ha a r eecton the pro.ance of the agricultural sector, the available statistics for the past four years show a tendency for aver- ag y4ilds from ir4-rgated lrds o in 4crease - A endenc.. for zvrg es from rainfed lands to decrease. Increased yields from irrigated farms are ble-ing achieved throug" ir.creaseA effort on the part of th-e farer-h -is NJ AI L%V& C I.4&WUL CL5~aL - u f I&Ja CIC U&LA .L F C I~J L.LL~ A.L WLIU LI: adopting correct plant population and controlling weeds and disease both by h.d_A lab1ior ar.d spraying. Fe,;iizer u Ls i LLLL8L.O.bLLr4 grLadually, -whJle no rapid increase in mechanization in the Jordan Valley has taken place. 12. Technical change in rainfed farming has mostly been in the form of increased tractors. Dut this increase was not accompanied with much im- provement in the cultivation methods - only with an extension of the land ploughed into areas of very low rainfall unsuited for rainfed cereal pro- duction. In 1970, 1,615 tractors were recorded as being owned in East Jordan which should provide sufficient power to properly cultivate all the cultiv- able land in East Jordan. Very little cereal seed is being used and although fertilizer use has increased from 2,888 tons in 1967 to 3,502 tons in 1970, this is still less than 3 percent of economic usage. But there has been a marked increase in the use of weedicides and fungicides. Improvement in disease control is the only change which is con- tinually taking place in the livestock sector. Husbandry methods are the same as have been performed for centuries with no improved feeding or breed- ing aimed at increasing output having been adopted. Government Support The Administrative Structure 13. Government's support for agriculture is channelled through a mul- tiplicity of agencies and bodies. The National Planning Council (NPC) has an overall responsibility for the development of the country in which the agricultural sector plays z prominent role. Development funds are supposed to be channelled through the NPC, yet the Ministry of Agriculture has its own development budget-. Project preparation, in the irrigation sector, is the responsibility of the Natural Resources Authority (NRA), which was set up in 1966 by Law No. 37,as a substitute for the previous East Ghor Canal Authority and the Central Water Authority. Project execution rests with the Jordan River and Tributaries Corporation, whereas the Jordan Electricity Authority is responsible for power problems associated with the development of irrigation. The Ministry of Agriculture is responsible for project prep- aration and execution in agriculture. So far most of the resources availa- ble for the development of agriculture have been directed primarily towards increasing the total area of irrigated farming in Jordan, both by surface water in the Jordan Valley and by underground water in the plateau area. 14. The multiplicity of agencies and bodies through which public sup- nort for the agricultural sector has been channelled, has rendered Cnvern- ment policies less effective than they otherwise could have been. This - 26 - shortcoming is likely to continue so long as no streamlining and consolida- tion of existing bodies is undertaken. The NPC would be the logical govern- ment organ to review the different agencies responsible for evolving and imDlementing proiects in the agricultural sector and to bring about the necessary changes in the present administrative structure. Without such change, Government policies, however well conceived, are not likely to have the desired effects on agricultural development. Research and Extension 15. The Ministry of Agriculture has the responsibility for research and eictnnsion. The Ministrv's research program has practically been non existent since 1967 mainly because of the war and the subsequent internal Aiit,rhbni-p.a. nier Alla, the main research station in the Jordan Valley has been closed since 1967 and was reopened in late 1971. Wadi Duliel, tha mTnn, resePrAh station in the Highlands has similarlv been interrupted in its research work and only within the last year has been able to restart its work. As a result re8e2Frh has been unable to keepn un with the new agricultural developments and their applicability to Jordanian conditions. Now t.hat stability has returned to the ontiTrry, a tainr effnor in research is needed if Jordan is to catch up with developments and their application. 16. The extension services of the Ministry of Agriculture operate at 4ferent- levels. The ,.in outlines of the system are as follows: - A. * X A A S - - A dFirst there are those person-1 ba the Gnment 'a research stations whose primary task is to disseminate to -the f.a.mers 4n f-t, n coll-ted on t4he A4ff,oeret raoe:rnh LJIC L UUn -Jj~LUj~J C~. a . -w o stations. At present this part of the extension service is operatin.g very poorJLy Aue to- th lack o am quarters on how best field staff could achieve their objec- tives, with the result that advice given. to the fa mers does not necessarily lead to a maximization of returns, such as advice relating to the application of optimum fertilizer rates for more profitable crops. ii. General field extension staff based at the headquarters of the six Governates in the country. These field staff have subordinate personnel living in the villages within the Gov- ernates. Tne prime task of these field staff is the distri- bution of improved seeds and fertilizers and other new tech- nology inputs. Tney also collect statistical data. iii. The extension staff that are concerned with control of disease in the irrigated crops of the Jordan Valley. This group is responsible to the Head of the Plant Production and Protection Division. Their main responsibility is to carry out compulsory spraying which may be introduced in the event of a serious outbreak of plant disease. iv. The newly established extension service of the Range Manage- ment Division. T.hese have the resporLsbility of enforcing any future grazing laws in the range lands. v. Extension staff in the Veterinary Division whose primary func- tion is disease control especially of contagious diseases. Since keeping a watch on stock increasement is also part of their duties, they have little time to devote in animal husbandry. 17. With a total of some 450 qualified extension staff involved in law enforcement ana auvisory worK on agricultural production in Jordan, the extension services are undermanned and there is undoubtedly room for expanding extension staff if better results are to be achieved. Better guidance and direction from the ministry headquarters must be given to extension staff if they are to make a greater contribution to increasing agricultural output. In addition coordination between the divisions responsible for different parts of the extension work within the Ministry of Agriculture could be greatly improved. Credit and Marketing 18. Credit for agricultural production is available from three sources in Jordan: i. The Agricultural Credit Corporation (ACC) which is the major source of medium term (5-10 years) credit. It has an authorized capital of JD 7 million including two loans from IDA totalling JD 2.2 million. The Corporation makes loans for land reclamation and improvement, development and improvement of farm water supply, orchard development within the Government irrigation schemes, farm mechanization and poultry farming. It charges 6 percent to the borrnwer_ To a lesser extent, the ACC extends loans for seasonal credit and charges an interest rate of 8.4 percent. Many of the loans are secured as a charge on the salary of a relative. The repayment record of ACC has not been good primarily because of the after effects of the 1967 war and the civil disturbances= The ACC however must pay more attention to productive lending par- ticularlv through heloing its borrowers to nrenare better butdgetns ii. The coonerative movement also provide cnredit to the farmersQ There are between 200-250 Agricultural Cooperative societies in Jordan FAah snolpty i8 a mememr nf the Jordan Cooperat4ve Organization, the parent body in which the Government has. shares. Th.e sno-4ctie hbrrow money fron t Orgarization at 6 percent and lend to members at 8 percent. Almost all the lending done by agricultural Cooperative societies is short term seasonal credit for crop production. Lending by Agri- cultural Cooperatives has increased by more than sixfold, from JD 45,000 to JD 300,000 between 1969 and 1971. Although re- payment records were reported as good, no officia1 records exist to substantiate such claims. On the other hand little success has been achieVed in organizing the mnrketing of produce through the cooperatives. iii. The third and largest supplier of agricultural credit, is the commission agents twho are priv-te agricultural merchants dealing in all forms of crop requisites and marketing all forms of produce. They are the main source of short term credit used by farmers in Jordan. They provide crop inputs in the form of seed, fertilizer and sprays on credit and take the farmers produce selling it for him in the wholesale markets on a commission basis, charging high rates of interest on the money lent for crop production inputs. This system has adversely affected the return to the farmer, not only from irrigated vegetables in the valley but also from the wheat and barley crops grown in the highlands. 19. In 1968 the Government established the Agricultural MarketIng Or- ganization, in which it had limited participation, in an attempt to influence the operations of the private traders wno control all agricultural u-arketing in Jordan. This was not su-ccessful and in 1970 the marketing organization was dissolved. In September 1971 a new organization, the National Marketing Board, which is wholly owned by the Government was formed. The Board will be responsible for the promotion of agricultural production and marketing. The success of this new Board will depend on whether, as a government body, it can keep its operating costs to a level where it can market agricujLtural produce and at the same time increase the returns to the farmers from the low level received at present through the private commission agent system. 20. Although the general drift of Government policies in tne agri- cultural sector is in the required direction, a number of institutional and other reforms are necessary before Government policies can be more effective. If as expected agricultural development forms the corner stone of the Three Year Plan and if the Plan is to stand some chance of success, attention must be paid to the problems and constraints identified in the above discussion. The Government agencies responsible for agricul- tural development must be streamlined, more attention and resources need ta go into research and extension work and the Government should pay more attention to the problems of credit to the farmers and the marketing of crops both inside and outside Jordan. The Development Potential 21. Given the structure of Jordan's economy, its future development is intimately associated with the development of the agricultural sector. Agricultural land and water remain the most valuable of the country's natural resources and their further development could provide additional production, - 29 - exports and employment. The country, at present, imports the larger part of its food requirements, and is not exploiting the export advantage it enjoys in certain crops. However, if Jordan successfully develops its agricultural potential, it can supply its own food requirements such as wheat and meat and at the same time develop exports of citrus and othe fruits for which markets exist in the area. But to do this Jordan must devote its efforts to the de- velopment of all the three main agricultural fields of irrigation, rainfed farming and livestock. Irrigated Agriculture 22. The supply of water for irrigation is at the present the most important limiting factor for the development of agriculture in the Jordan Valley. The irrigation schemes associated with the Yarmouk river cannot be implemented at present because of the situation arising out of the 1967 war. Renair works of war damage on the main East Chor Canal are, however, proceed- ing in an attempt to make better use of the run-of-the-river flow of the Yarmouk. In the meantime. the Jordanian authorities are concentrating their efforts on the development of the Zerqa river dam and its associated works. The Kaiwnitr Fitnd for Arab Eronomir Dlevelonment in already enmmitted to finanre in part, the construction of this dam. 23. Sediment load is high in the flood flows on the lower part of the Zerqa basin. It is expected that the recla-mtion of agricultura1l aren many decrease sediment runoff from the catchment by 80 percent and that the im- provement of hdli nint4nin and of inon-arable land may i. 2) 5 2) §1' 1):) t4g 78) '46.66N '1(9- '5) 33 :- .3.06X b * Prints (4~~~~~~~~~~~~~~.316) (4.38) (36) (.1 4.25, 'A) .9j i 4.3 3) ?.,.27) 4. 31)) 3. 3. Less: Net Fcntor Income from kSroad 5.7.39 7.00 11.93 ad6.07 d56 11.67 .: 15.15 11.-24 10.37 1.4.03 1:2.59 13.65 ~/The 1959?-66 Renise are niot strictly oomparable to the3 1967-171 statistics, due to a. chancie in ;ltr p7n-x*lursa resulting t:hein political! ev6nt'd of VI JEsitimates. The fi.gures for Imp,)rts (and Fixed lInivestment by Gore-,immnt') have been adjusted 'tn,wnwari by JO 4.1 titinto a-iount for t,.e extended closiure of' tyin S;r1axi 'ao~rsr. LI DB (ap) is overstated by the amouant of subsidies, for which statistics are not reiadily available. In 19~72. thesoe are estJinnte& at axound JrD 0.5 million. Source: Department of' Statistics - The National Accounts 1967-1969, and uinpublished prelliminary estiriates. Table 2.2: Jordan - S of National Income) ACCootnta 1q59-66. 1967-71 (Als Peroentage of GDP 2 12SS 1960 1961 1962 1963 1364 1965 1966_ 1967 1968 196' 1970 1971 I. Gross National Piroduct 10b. lo0.o 107.5 lOj.8 110.0 106.6 lt7.B 107.7 108.l9. 105.8 1(.5 106,4 l06.5 107.9 1. Neat National Product (mp) 101.7 103.4 102.2 105.6 102.4 l03.8 103.7 104.7 102.3 101.2 102,,4 n.a. n.a. 2. Depreciation 4.3 4.1 3.6 4.4 4.2 4.0 4.0 4.2 3.5 4.3 4.0 n.a. n.a. II. Grosis Domestic Product iLR 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100,0 100.0 100.0 1. Gross Domestic Prodluct fc) 91.1 91.0 92.3 91.4 91.2 911.0 90.1 87.8 91.0 90.1 90°3 89.8 89.8 a. Agricujlture 16.1) 14.9 21.1 (17.6 17.1) (22.9) 20.3) (16.2) 19.9) 14.7 16.5) (15.0 (17.2) b. Industry 11.6) 11.6 11.1 (12.0 13.0) 12.1 14.4) (15.6) 13.5) (16.0 15,.5 (14.1 (13.6) c. Commerce 19.3) 19.9 20.2 (19.9 20.5) 18.8 18.8 (16.9) (20.1) 15.5 17.5) 16.31 (16.5 d. Government 16.0) 16.1 13.9 (14-3 13.6, (3.2 12.8 (12.9) 13.4) 17.8 (16.5 (18.8F (17.21 e. Services 28.1) 28.5 26.0 (27.6 27.0 24.0 23.8 (27.8) (24.1) 26.1 (24.3 (25.6l (25.3) 2. Imdirect Taxes 8.9 9.0 7.7 8.6 8.8 9.0 9.9 12.2 9.0 9.0 9.7 10.2 10.2 III. Domeistic Consution 120.3 117.5 106. 110 S 116.1 1()4.5 lC4.3 110.6 10 113.4 105.4 119.8 i36. 1. Government 27.2 27.5 23.14 24.4 2 21.6 11.9 22.9 23.8 31.4 30.5 33-7 2. Private 93.1 90.0 85.5 86.1 90.5 82.9 c2.14 87.7 81.4 82.0 74.9 86.1 85.5 IV. Domeistic Investment 13.4 1S7 17 . 0 15. L 7. 0 16.6 il.J _ 13 20.1 29.4 10.0 ] .5.7 1. Fixed Inivestment 19.3 17.8 14.1 18.5 15-5 L2.6 114.3 162 13.6 160 17.9 9.3 ' a. Government 5 4) (14., ( 4.5) ( 6 15.5) ( 4.0) 6-2) ( 7.3) 7.7) ( 8.5) (7 (( ___ ) ) 8.2~~~~~~~~~~~~~~~~~~~~ 947) 75 b Private (39 3-3 ( 6 117 0.0 8.6 8.1 ( 9 75) 10.3 4 6) 2 2. Stock Clanges - 5.9 - O.L + 1.6 1.5 - + 4.4 + 2-3 - 0.7 0 0-3 + 4.1 + 11.5 F 0.7 - V. Resouarce G;, 3 _37 24.6 27.5 31.6 ; 21.5 2 .9 26.1 18 . 1 2 32. 0 1. Imsport3 (C;? ) 146.3 47.91 38.7 43.5 47.3 38.0 37.9 44.9 32.7 48.7 49.5 46.5 44.6 2. Less: EKports (G&NF%) 12.6 13.0C 14.1 16.0 15-7 16.5 1.7.0 18.8 14.2 15.2 114-7 16.7 1L2.6 VI. Domestic Slvings - 20,31- 17.; 8.9 - 1. - 16.1 - 4. - 4. - 10.6 S.2 - 13.1.4 - 19.8 -6.1 1. NationaL Saviings 8.,1 11.2 13.8 15.4 4.0 18.9 12.9 7.9 26.0 25.3 20.8 5.8 9.1 a. Government (532 4. ( 3-3) ( 6.1) (-5.9) (1.2) 3.3) (12.5) (17.5? (-0-5) t-2.1 2.0) b. Private ( 7) ( (10.5) 93) 1 (13.0) (11-7) 4,6) 13.5 17.8 213 79 1 2. bess: Neat Trasnsfers from Abroad 22.,4 21.2 16.9 15.9 13.5 15.6 9.5 9.6 25.5; 33.1 19.9 19.2 17.7 a. Government (17,8) (16.7) (13-7) (12.9) 10.2) (13.0) 6.9) 7:1) (23.C' (25.0 18.0) 17.3) (16.0) b. Private ( 4. ( 6 4.;5) 3.2 3.0 33 2.6) 2.6 2,5) 2.5;) 8.1) 1.9) 1.9 1-7) 3. Less: NIeL Factor Income from Abroad 6,0 7 -; 5.8 10.0 6.6 7.8 7.7 8,9 5.7 5.6 6.3 6.4 7.7 4/ The 1959-66 series ;are not strictly comparable to the 1967-71 statistics, due to a change in compilation procedures resulting from the political events of 1967. i/ Pre-Actual )/ Estimates. Tlhe figurea for Imports (and Fixed Investment by Government) have been adjusted downward by JD 4.1 million to aLccount for the extended closure of the Syrian borders. Source: Department of Statisgtics - The Nlational Accounts 1967-15169, ard unpublished preliminary estimates. -. .hl p 21 Jordan - 5uinmary of National Tnccoe Acc7ciirVs 2?-.> (in millUons of J:)rdaz:13c DJ.oRrz .t .,J : 7,'.'' 5.f'2' l.j:t9 ;';''i;/ 971 31 T. Gr ss Natio,nl Product (mpj 22.1 12. ' -! .' '9 200.76 1i. NJ AXNati.,nla]. Produ:.t 2)II. 2.) n.e. n. a. 2 erC.- a ~CL.t').±.t... -*..;.2. ; - '<7 ," .na ,I Gross¢ Dom6tlc P:oci"c4 r - 023 ?R x .1~ 5) . . ?f. 136. Ct7.'.lo. i . uro f'.90 59.J16 1. Imports (G & NFS) 68 !6 iSo 10o8.69 8 h.17 82.88 2, Less: Exnorts (t0 & NYFS) 29.73 30.1.8 32.26 30.27 23.1±2 VI. Domestic Savings -10.97 -27.02 -1-.- <'5.81 -30.27 1. National Sa.Lngs 5L .L 5 , 5a.9±b L3.7- Jd;.50 16.93 a. Government (26.259 (15.02) (-C.95R (-3.90) (3.71±) b. Prl4vat. tIn2 nr.' (I '3 r (I.i oO (7i .ClI (10 1)o 2 Les: Net Tr-nsfcrs from Abro.9 333 21 4 L 3. I P.0 32.88 a. Government (1±.1) (50.32) (39.65) "'31±,j) (29.73) b. Private 5.19) (1.6. I) (17)1,). (3.1D6) (3.15) 3. Less: Not Factor Income from 12.09 11.108 1'la. 03 11. 79 11.32 Abroad 1/ The Amman Snot of 7iJyuic Lndex ha- been used as a defjlator. 2/ Pre-actual. 3/ Estimates. Souirces: (1) TPepnrtm-rnnt of Statistics - The National cour ::?v7-69, and unpub,lished prelirminarr EstiT-Rtes. 2) Central Bank of Jordan - Monthly Sctaticticol 3ulletin, October, 1971, co.?.S*.tim.ates. TABLE 2.L: JORDAN - Industrial Oriein of Gross Domestic Product 19',9--66. L967-'71 -T(In mnill ions of' Jordanian Dinars 1959 1960 1961 1962 1-963 1961. 1965 1966 1967 1968 1969 197D'/ 19712' _____ ___ __ ____ ____ 11.6 _______ _ _-_ C,ross Domestic Product (fc) 85.17 89414 110.87 108.62 1117 135.52 15).95 11j9 .7L -L77.LL 168.49 19I.l 173.71 185$.)o 1. AEriculure 15.08 i4.62 25.30 20.590 22.08c 341.114 31..11 27.65 38.714 27.53 36394 29.00 35.50 a., Crops and rorestry 10.11 9. 21.03 13...32 7 .1F, 25.6 2 29 .1> T'2 20.c8I n.a. n.a. b. Livestock )4 .7 5.37 L .27 7.72 7.90 8.52 11.06 11,67 9-59 L,4.49 1 2.53 n.a. n.a. 2. Industry 10.89 11.39 13.33 lb..1i 16.7L 17.98 2Lb.09 26 55 26.19 29.88 314.01 27.31 28.20 a. rianuf'act-uri_n and i-iininE 0.23 7 9 3 10. CZ2 1 2 5 .22 -727 T7 20 .05 23.12 21 7.20 b. Construction . 66 L .50 L .50 6.15 6.12 5-L5 7.87 3 ,28 8.6'3 9.83 1J.89 6.81 10.00 /. CommuBerce - 18.0l 19.'57 21..28 23.63 2G.I4R 28.01 31.L3 28,92 39.08 29.07 313.36 31.50 34.00 1.. Governr;ieet L I4.9 1''.7? ].7ll 17.o6 17.61 19.70 21.1- 22,03 26.0:1 133.25 36.28 36L.0 35.50 _ ~~~~~~~~~~~~~~~2. __ 9 Li _ .q 9 .48 52_ 20___ __ . ervicEs 2u.2)i 28.07 31.22 32.82 3h .81 35.69 31.31 1.9 9 L7.09 1.8.81 53.35 49.50 52.20 L. :: - -ier Supply O.ih O 0.(7; 0. 93 1.03 1.7 210 2.27 2.09 2.00 2.20 i. Traris lcrr 10.7() 11.12 I2?.61. 12.53 12.77 12.03 1i.; 11, 112 14.81. 14.55 1ID.01 11.00 14.50 c. iaInkik -i napce: 0.8. r0,87 1.27 1.16 1. 35 1.5'1 2.11 2,,77 3.1.0 2.97 4.20 4.oo 4.20 0. r ne . 30 7.13 ,.3 8 .58 0.39 9.93 lc.6 11 ,20 11.90 12.33 12.78 13.00 13.30 e. Other .erj 7.78 8. 2.) 8.63 ?.l 10.37 11.19 12.I 3 IL.1, 15.17 16.64 113.27 16.50 18.00 Pre- Actul 2:ie; ri' rr' Il ! ,'i':. 1: dordl 'i'~ ?Oi rwts I 9n7-,.:, mrl iinpijtml :hed pre1 i S n';r, e,.:rt t- TABLF, 3.1 tJORDAN - Summrary of Balance of Payments 1959-66. 967-71 tTmillions of Jordain~aE 1959 1960 1961 196? 1963 19614 1965 1966 1967 1968 1969.. 1)7'. 1971 1. Exports 11L79 12.79 1J.90 19.08 20.2f6 21s.'`7 28.51 32.06 214.7 25.90 31 -17,. ZY n.a. a. Merchandise (fob) 3-.41 -3.79 7.27 _.T92 -63 Ir7- 9.91 I 0-.14 11.33 TE 2 1475_ 12.17 lf TCl3 b. Non-Factor Ser-vices 8.38 8.8h 1 . 68 13.16 13.70 1.814 18.63 21.66, 13.14i 11.614 16.142 2):.' n.a. 2. limports h3937 04.05 146.:1 51.80 61.08 56. 615 76.60 63 73 80.62 108.82 F9.3. n.a. Merchandise (C40 40 148 T, 27. r 17T7TJ f77F92 73:73 L9.38 55QT7 ' -7 .2-6 537.-30 7775E -7 , ~ 3 b. Non-Facter Services 3.19 14.25 )!.FI7 ". PI8 7.143 7.26 7.78 9.314 9.50 23.33 141.28 n. a. 3. hesoar~:e BaiPce (= 2 3.8 -j14.26 -29;.66 -32.7? -I40.50 -3 2.-07 -35.01 -144.514 -38.99 -51.3 -17.65 -27 14. Net Fa.ctor income 5.O 7.31 2.'. 1 3 .'2.7 2." 15.15 11.214 10.37 114.03 -. 1.3.17 a. Interest and Dividends (Net) T -7 6.uC ¾7 1 .57 1.11 1.7 TT TW TT -3- WT b. Itemittances 14.1,3 .9.9l, p'.83 0.62 jo.n9 6.55 14.10 6.92 . 4.94 c. Oil Transjt Due, 064 "' ,6 1.1 1<'3 1.71 1., J.0 1.-35 1.7 .43 5.~~tedTratns_ers 2) N 3 - 1"'): I7.1,7 2.0 1 9 16h 393 51.8 7.4 6 60 Pri vate 773 -1T7 D.77. 7.217):721 2.r TT 15 1.1 b. 0ffiiclai2 (Net) lu. ~,' I.15 1 1~ 3 ;32 .: 3.2 1?1 1.58 5 3.0r7 145.79 l 34.92 c,. Bal1ance on Current Accou nt - ~) ,-]).77 2. 88 '0 -22.86 26.18 10.12 -1 6. 26I 6. -23.54 7. Direct ln~tvestr;, k''et,' 7 X ~ 2 ' -0.30 0.~ (I 0.06 0. 80 ..L 1.28 S. i.eu±iwr, & Lor,i- Termr Lox. *I79 1~.2 .J..2 4- 3..2L2 .... 8.54 a. Disbur ses,'n n.. .a n.',. n.a. n.a. n.a. 255.07121 ri. a. ,.Lest: n.arU .iro . a. 0.3. n.a. n.a. n.~a. 0.97 1.02 0.80 r.. a. y. 0tner Tranut,..hon: 2. '2 3.7 2.71, 2.8? 3.17 6.29 8.6.14 11 .14 0.12 0Q54 _.63 !' 0.93 13). Change in Reserves C iricrp.;i5e) i " -K~0 -. . ~ -76 .1 -88 3.9 -63 10tz.921 18 I-,..Net Srrors o ' ,Thri .C .1 2, - .5I.C'' 6.;oRf 0.0' g.1 5.03 1.500 .3.52 .y,urad: () -dy i~pat,ierL n a. .ta,ic~'The lation-i .ccount.s 177-.9 nd unpublistied preliminary esitimates 2)1 4u7 -71: Zentral Riank oi Jordt,,, IVonthlyzit.atistc'.Ci Bulletin andi Jordan, Balance of' Paystnts. Fivures for 1971 are prelimirinry. ' he rr.hion:ls, SCCOts Lurcs dij2;er! `3inesii'i "ro. tne bia .ncF, o:' payenets if fures in the estimiation of exports aLnd importo of' noi-l>ct.or service:, and in c!urrentz tran,;>srs Croc -tbrc :1. Hcnvc: t n- small ifieecsin resource C:ip and the limplied currenit account balance fi [-urea in Taible 2.', an"I 'A.I. (hE':e 6i :rerences a~re f'or I10%-71, ,El: _ 115a 112 135 153 654 9912 69 2e oent /- 07 4j G2 I,19 183 320 ___ -i 7 O , : _ 174 219 _ 304 i. ah2ineirl'nd Tr,isror~ i'-u.4 r':e ru.___2)_-____ - 2__ Brittcrjec rni ACc) z[.l;tor- 13 2' 2114 11o 1]68 207 3014 2,. I i.;ce2lanr:Dics o'.A .. . ......... l o A.:muree /L_[t 1 ! J. il {? 1 ' ;:.-C- H z 9 7X75 _t7-- tS2,172 11,216 j,320 : -;Ieor-l 2,,011 2,]>8 1. > 1K3)o? ?sC)l 2,833 _2_ ______ ,C~II Ii 11,326 lb, _7 _174 __7__ ,t~~~~ c) s9t9'>8+]]1J1<2 L,l5 1.7i "TABLE 133 :'JORDAN - Quantity and Price Indices foPrincipal xpolrt 195 6 1967-70 1959 1960 1i961 1962 1963 19614 1965 1966 1967 1968 1969 1970 Quantities All Products 69 137 103 100 103 166 160 19fJ 222 270 231 172 Grain & Grain Products 52 25 68 100 1B 14 2h 23 28 23 30 10 Vegetables & Legumes '75 109 M8 100 139 165 155 2259 176 172 144 156 F'ruits iS4 51 93 100 109 91t 95 57' 59 64 74 102 Raw Mtaterial 69 89 107 100 103 175 169 211 246 305 259 183 Electrical Appliances 100 lt)0 13 100 _115 50 25;2 4o05 291 370 473 750 Hanufactured M.aterial 88 1;25 100 100 550 1,288 900 675 1,250 1,725 1,025 938 Prices All Products 103 97 96 100 97 99 10 5 103 116 125 129 112 Grain & Grain.Products 103 99 1 0? 100 10S 105 101 101. 101 112 113 127 V'egetables & Legames 106 75 91) 100 88 86 89 87p 119 153 165 128 Firuits I 03 3] 9O 100 lO 1S 122 157 iL47' 167 147 163 159 Raw hateri al 1030 100 100 100 10D 100 10() 10C) 100 100 95 85 Electrical Appliances 100 10)0 55 100 SJ 12L 1 09 117' 107 101 97 90 iianufactured1iatEr ial 1103 10t8 59 100 89 81 96 96 98 108 101 86 Source: Departimnt of Statistics, Statistical Yearbook 1970. IABLR ,1.34 JORDAN_F- Cr]p4ion of Nlerchandise Imports (c.i.f.) 196a4-66, 1967-70 In thousands of Jordanian Di 6ITC 19614 1965 1966 1967 1968 1969 l970 Code i. Focd -and Live Animals, of which: 13 601 14,202 17, 537 13 635 1; 7145 17,837 L6 691 Live knimals 1 3,129 D-iry Prcdujcts and E'ggs f8241 1,064 1,055 1,201 1,4130 1,883 1,939 W.heat andt Flour of 1Pheat 2,866 2,283 4,307 2,506 3,46o 1,776 14,005 Rice 1,:268 1,466 1,468 1,3141 1,135 1,255 755 SuEar 1,940 2,037 1,563 1,520 1L,854 2,286 2,04l Fruit, Vegetables and Nuts 1,6644 2,191 1,910 1,742 2,517 2,520 2,316, Coffe, Tea, Cocoa, and Spices 1,:362 1,573 1,751 1,583 1,823 1,996 1,584. 1. Beveraaes and Tobacco, of which: 534 751 776 1,100 l 317 1,2j12 607 CRie acco W7 o_760 991 fL'01o5 993 57LI 2. Crude Hiterials, 1nedible, Except fuels. of which: _2,17 2316 3.052 2,601) 2,281 2,753 2,878s Wood, Lwnber and Cor k 996 992 1,323 1,?88 814o 761 712 Textile Fibers :ind Their i!aste 11415 323 522 U146 623 1,119 1,976 Oil Seeds, k :., and Kernels 382 4181 434 4132 375 379 169 3. inirneral Fiuels, Lubricants ,n,- Related Aateriajl,_f ich: 2.; 7232 3425 2 987 3 217 3,811 3 `94 __rue D I______ 1,1 2132 2i-7-I5 ,69 -2:,523 b^ ia] d Veretable Oil and FatS 917 1,091 1,278 - 939 513 537 301L h¢>rzzal, ot v.hch: 2,8f8C 3,680 3,022 3,1U12 2, 72 e-I - * -* - Lr, -rmieut i^l Prochc I s9 1,331 ,'541 1,1407 'L,5(4 1,567 1,149? ^ -^t I. O-. _ aInd ?erfumrn iateriah, Po]i7hinj- Preps. 3L, 3P ,,6 49 379 524 590 46L .I-iu:^tured Goods hy 6ateri a2 of hiiich: LL I126,: 14 114,480 13,353 :L7,292 10,197 iB i,her '.an . t ur 7?0 ] ,039 1,2251 822 1, CLo 1,077 653 r- -:r msI!d pr.etr :ioir )r 1,047 1,26o 887 1,020 1,175 4903 "e;1 ;le Yarn, Fahr;.--,, et.-. o, )34 6,636 6,,744 5,031 5,672 6o370' 3,368 :ner. ,nd Tr-.^,:--ort Eoi^rirnt, o7 i'-h: 19 (7) ( 796 11 771 11 327 11 137 :13,036 8 034 -TFT7. mc - I t 7o-tc:hi7nea,7ry -L 77 ;,14,9 785 3 Transport. 5-, ii.nent and Parts 5,807 3,012 4,924 L.,908 3,863 5,211 3,551 !1<^eIneom I.anu, actured Article o -! wr.^: 2 s 321 2,692 2,44 3,153 3,796 1,A142 ,l< o t ' ;." onto ^ r 824 036 1,069 675 1,026 1,457 672 t: -r,. r1u',ert2:-, Photo1 r aphi 7 L irrm r- r,, . ^t^ 123 1458 $54 671 826 797 49 a.':. I:; nr,wn.c, ! i A xrl e 2909 !-,527 2_682 3;751 14,033 19,235 °: ort a 56,2 f-LB 508 =7.149; 67,752 46589B c- De,-r rrcn- ar: Statistics and lentral 9ink no JYor-n. : =. - t'- - a' :t rv,u 1 diiscrepancy betveen these J;t-lres ind the Balance of Payments firures. TABLE 3.5 : JCRDAN - Quantity and Price Indices for Principal Imports 1959-6, 267-7O -T'9ZLS - C-on. :x)) L959 1960 15)61 1962 1963 1964 '965 1966 1967 :1968 1.969 1970 Quanmtties M.1 Prosacts 669 102 100 li] 172 13 :125 Of which: Grain Sc Grain Pyrducts 83 1h9 181 100 212 137 113 213 91 89 80 111 Vegetables * Legumes 80 102 81 100 137i 125 128 135 l1ei 47 1Ui 93 Frdt.s 76 83 i'0 100 151 1! 210 158 133 113 89 65 Texctiles 52 57 73 100 79 13h4 133 105 117 80 8ii 61 Electriz App1iarnces 1oo 75 39 100 69 70 50 69 43 93 135 40 Transport Equipment 97 66 67 100 120 599 171 306 169 134 ]L20 111 Prices All Products 106 101 103 100 101 10.1 101 1011 109 110 113 122 Of which: Grain & Grain Products 99 89 99 1(C0 101 106 101 108 116 117 :4h 1.22 Vegetables S: LeEimes 97 90 96 1C0 81 93 90 100 98 94 102 1.26 Fruits 8 o 88 98 100 ?98 90 B2 91 96 92 :100 110 Textiles 93 96 97 1C0o 96 98 97 97 98 95 98 1.01 Electric Appliances 100 1L32 112 100 12Cn 110' 120 115 117 211 :163 1.87 Transport Ec,uip ment 10 109 115 100 10'5 1ci 9ii 109 109 125 155 137 Source: Departnent ef SltatisLiCS, Statistical Yearbood 1970. TABSLE 3.6: Jt2RDAN - Balance of Pm s, Invisibles 1955'-66, 1967-71 nn=Tons ofLlti Jor anLan DLnar 1959 196( 1961 1962 1963 1964 15965 1966 1967 1968 1969 1970 1971 I/ 1. Gommodity Balance -36-77 -3S8Q8 -36-47 -39-00 -47-°7 -40.65 _c.B6 .56.86 -42.9() -404 -p.79 -53*36 -59.59 2. Non-Factor Receipts 8.35 8.84 11.613 16 13,70 18 18.63 21.66 13.41 11.64 L6.42 18.00 n.a. a. Travel 2. 3.23 T7 375 6.0 i.02 6.7 46 4-53 42n.a. b. Other Services 5.53 5. 61 7.314 8.11 7.70 7.82 E8.82 10.,0 6.6? 7.04 L.89 13.78 n.a. 3. Non-Factor Payments (-) - 3.19 - 4.25 - 1.8'7 - 6.88 - 7.L3 - 7.26 - 7.78 - 9.4 - 9.50 -23.33 -41.28 -2 . 1 n.a. a. Travel 1.93 2.;?2 . 31 2 3.20 3-63 7i.29 T7.23 -T. 52 ' -1_7.9 -9.35 n.a. b. Other Servtces 1.20 2.03 2.83 3.-4° L.23 3.63 31.49 LIM1 - 4.2:L -16.33 -33-30 -15.06 n.a. 4 e. Fcource Balance (= 1-2+3) -31 58 -3b .'6 -29.ou -32.72 -01'8o0 -32.07 -3';.01 -44,.54 -38.99 -54-73 -77.65 -59.77 n.a. . }'actor Incmane krce:Lved '.78 7.89 7.20 12.23 8.79 12.12 131.45 15.63 12.0'7 11.30 J4 .884 13.29 n.a. "I. Remi ttances 7t2 13 , .21 , 6.12 n 77 - 10777 - ".10 n.a. h. Int.erest and Dividends '.,7 O.n32 1.1 1 .37 1 .1 1.71 2. 8 3,. 17 4.417 5.85 6.85 6.77 n.a. c. .]. Transit Dies r).5n 0.01 0. 77 I .ot, 1.51 1.13 1.73 1.IJ2 1.08 1.35 1.07 -0.98 n.a. D. r'-.tor Piymeits Ahroad (-) _ n.!8 - 0.1 n - 30 - n.23 - o.1l5 n.52 - 18 - 0.8'3 -°93 - 0.81 r6 n.a. Intere-t and Divdends 0. J7 O 27 -.30 O ?3 T, -m - 0.93 ' 0.65 n.a. 7. ...recu.ter7 r,2 l!ns heved 21.'& 20.90n 2'j.l I .n 17.53 23.37 16.12 16..58 53.93 54.48 ,47. 40.22 36.05 r. PFvate 1}, 73- o IJ1.7 25 37 77.29 , .2-1 2 .35' 1.4 1 .14 -3 c. I -: 1 I O..? S: 15.3? 13.28 19.51 11.83 12.37 51.58 53.07 45.79 39.08 34.92 Arab GOV',rniJerl (t-l.) (n.-.) (n.a.) (n.a.) (n.a.) (ri.a.) (n.a.) (37.57) (46.25) (,41.15) (33.07) (18.67) U.. S A. (,* ) (n.-f.) (r,. l. ) (H. -. ) (n.a.) (n.a.) (r. a.) (n.a.) ( 7.6?) ( 1.19) ( 1.23) ( 1.38) (12.58) U. N,, R. '.:. A. &, Other U. N. (n.q. ) (n. -L.) (n. i.) (n.a.) (n.a. ) (n-a.) (rn.a.) (n.a.) ( 4.80) ( 5.51) ( 3.37) ( 4.51) (3.67) Other (n.a.) (n.rn. (n.a.) (n. i.) (n.a.) (n.a.) (rk.a.) (n a.) ( 1.59) ( 0.12) ( 0-o{.) ( 0.12) ( - 8. U'nrequited Trensfer Paymi,ents -7.0 - 0.07 n.O r n .06 - 0.0n - 0.09 - 0.05 - J.0 -- - - - 9. CFurrent Account Balance - II.3 - 3.d1 _ - 2.05 -18.77 - 2.88 - o.01 -12.86 26.18 10.12 -16.28 -6.91 2.54 Source: Central Bank of .Jordan 1/ Provisional TAE3LE 32.7: J(RDAN - C Leo ci- a fLstribation of Foriai nTrads 196I-Q J967-7C TIn thousands of Jordanian Dinars - - S64> 1965 1966i 1967r :1968 1199 170 Lomestic Exports 7',012 7,753 8.759 SJ,2B 12, 1-72 "L1L6 9,326 Arah CoMmon ILharket 3tates 2,528 2,435 3,674 3,983 5,065 5,244 4,320 Other Arab States 2',136 ?,889 1,573 - 2,IJI 3,109 3,266 2,7i68 E. E. C. 172 321 lE1 761 52 1 1 U. K. 5 2 3 3 4 2 TJ. S. A. 2h 28 37 13 3 6 India 510 612 1,337 1,h29 1,689 '1 ,82 253 Japan 136 135 31 102 35 17' omrinunist Bloc 383 380 371 8175 1,139 '1,hio 1,207' Other- 462 2A0 113 Li43 759 h.71 75C0 ]LrpOrt t '5,3b3 5 S2 . 68,211 rc, r8 7,4292 65A822 .A.rib Zorrirnon l aarke. .3tatse b,586 )4,390 6,479 l, 507 lIt3 74 is, 992 5p633 Other Arab Stal.cc Lt,921 5,969 6,583 6,008 6,65 7 7,930 7,281. E. E. r 9,339 11,980 13,713 12,106 11,808 12,)L3 12',722 IJ. Ks. 7,'5'7 6,. 167 8 1 b, 6,712 7,154 9,677 8,816 U. 3. A. 7,9112 8,391 11,6 2$ 6,769 6,371 i6,230 7,381 IndiLa 750 785 1 5 46 1,106 1,LL3 1,192 1.,635 Japan 2,298 2,536 2,860 2,o(34 2,894 5,1L9 3,8692 Corwrinist B:Loc 0,064 7,232 7,991 6,477 6,8l47 9,4133 59,018 Others u,906 8,152 8, 947 9,329 1LO 274 9SI46 9,527 .;or eC: r en rtimf nt os 1 0 i r' .z3, -ond Centr-A Bark of' Jordan Table 3.8: JORDAN - Gross Fore:ign Exchanpe Reserves of Nonetary Authorities 1964-71 (In Thousands of Jordarian Dinars) Feb. End o: Pe-iod: 19_L9 1961- 1966 196i_ 1968 1969 1970 1971_ 1971 Cerntral B;ank 27,320 It9,935 5389 87,16 101,581 93 ,T9 91,303 39,237 9(),817 Cold -- 1,218 1,218 1, 218 10,572 10,7'7 9154 9,957 9,957 Foreij.n Ex.zhan%c 26,b217 47,738 57 617 84 8]L4 89,579 8i,741 78,3132 75,392 76,102 1I'IF Gold Tranche Position 893 979 1,i,h 1,124 1430 1,431 2,057 2,057 2,057 oiDR' I s- - -- 960 1,831 2, 701 Covaurerc:ial B-anks 2111, 7 3' 2 I1C~ _ 7,264 5,304 __6__36324 h835 6,067 3,072 2,682 Government 3,r20 32_2 _tS03 2,079 - 1,j3: 905 /'41 576 576 TOAL Lj,72 o3,233 _____ '4,'4 93 1 )9,L 4 99t489 98,111 92,885 94,075 1/ Includes approximately JD 7 million resulting from currency reallignment. 3ource: hritt [Juik o: Jori:&n Table h.1 JORDAN: External Public Debt as of Decembe r1 1L971 1/ (Thousands of U.S. Dollars) Debt OutstandiLnif December 31, 1971 Source DisbuLrsed Undisbursed Total Total External Public Debt L/ 130186 h7,772 1. Loans from International anizations IDA 8902 6781 15,683 2. Loans from G3overnments Y/ 121,28h 07LZ52 162.042 a. Denmark l,h69 136 1,605 b. IGermany (Federal Republic of) 12,987 27,365 h0,352 c. Kuwait 25,38h 5,68L 31,068 d. Saudi Ar,abia 15,,000 - 15,000 e. United Kingdom h7,690 4 h7,690 f. lUnitAed States of America 18,75h 7,M7? 26,328 Source: Economic and Social Data 'Division, Economiic Program Department June 1L9, 1972. 1/ Debt with a maturity of more than one year. 2' Excludes interest in arrears of US$3,711,000 but includes Principal in arrears of US$5,482,000. Table 4.2 JORDAN: Estimated Future Service Payments on External Debt Outstanding 1971-1991 Debt Outstanding BeRinning of Period Payments During Period Disbursed Including Year Onlv Undisbursed PrinciDal Interest Total 1971 109,772 155,955 2,943 1,607 4,550 1979 124,704 172;244 1/ 9,133 1,821 10,953 1973 138,000 163,111 6,668 1,784 8,452 1Q74 1414 89R 156-444 7.137 1-949 9.086 1975 144,162 149,307 9,668 2,506 12,174 1976 13 6065 L39,639 9;718 29287 12,004 1977 127,609 129,921 12,369 2,106 14,415 1978 116,354 117,552 8,603 1,939 10,542 1979 108,683 108,949 12,380 1,768 14,148 1Q9n 96,554 96,568 6f ,91 1 ,f1 8 LA37 1981 89,747 89,747 7,406 1,519 8,926 10019 82) ,1 8,4 8,29 1 9,715 1983 74,049 74,049 5,140 1,065 6,205 1984 68,909 68,909 5,243 978 6,220 1985 63,667 63,667 5,148 894 6,042 19l8 5Q ,19 5 1 5,3 21 Q5,. 1987 53,485 53,485 4,966 731 5,697 1L700 90v , .J .L 7 90 ,j .0A 0- ~ .W. 9 a , 0 I 0 1989 43,297 43,297 4,711 567 5,278 1990 1308,586QrlAA 3858 A,4 496 5,140 1991 33,942 33,942 4,652 427 5,078 it Excludues Principal iLn ALrrears. Note: includes- ser-vice on all dUeLbts 1-sted in Table 4.1 with thCe exception of the following: Principal in Arrears: Kuwait 4,082 Saudi Arabia 1,400 LULdIc. -O4n lotadl J) , 'f0 Table 5.1: JORDAN -- Sunmry of Government Revenues and Expe!nditures 1664-71 (Tin Tholusandis of Jordanian Diniars) Est. . _ ]9614/65 1965/66 l966 1967 1968 1969 1970 1971 *A. Revenues 46,211 44,5 35,358 70, 417 71,9L9 76,382 i8,377 78.807 1. Domestic Revenues 23,828 26,732 23,310 25,497 26,269 32,520 30,259. 36,100 2. Budget Support MJ 13,682 12,836 7,929 38,037 39,&00 37,553 :33,070 34,927 3. Economic & TechnicaLL Assistance 1,725 2,436 1,9'i4 2,372 313 824 2,35i4 407 4. Foreign Loans 6,9r76 2,587 2,165 4,292 5,438 4,837 2,279- 3,741 5. L]oans Repaid to Central Government -- -- -- 219. 99 648 41.5 201 6. AIlocationi of SDR's -- -- -- - - 1,840 7. I.M.F. Colpensatory Financing -- -- -- - -- -- -- 1,591 B. Exeriditures 34 ,3 46,988 38,600 68,155 80,520 88,410 60,706 85,018 1. Defense & Public Security 21,6:1o 22,213 17,120 28,557 38,463 46,165 38,214 39,0994 2. Administration 8,30o 6,553 5,321 13,479 16,863 12,304 10,467 15,810 3. Social Services 5,875 6,773 6,o44 9,613 9,962 12,400 13,693 13,544 4. Economic Services 5,261 7,801 6,832 11,491 8,837 12,963 13,081 13,,060 5. Communication & Transport 2,507 3,648 3,233 5,015 6,395 4,577 5,2il 3:,510 C. SurpLus (+) or Deficit (-) Financing +2,538 2,397 -3,242 +2,262 8,601 -12,028 -12,329 -6E211 1. Change in Cash. Balances (- increase) -2,588 +2,397 +3,2142 -2,262 +8,601o +3,628 6,400 n.a.- 2. Sale of Treasury Bills (:'et) -- ---- -- -- 8,400 4,200 n.a. 3. Government Bonds -- -- -- -- -- -- -- n. a. 4. Central Bank MAvances - - - - -- 1,700 n. a. Source: Central Bank of Jordan, and Ministry of Finance !/ diLu mnronths only. bJ Including Emergency Aid of JD :21.1 million in 1967, and JI) 250,000 in 1968. Tltble .2: JO3DAJI - .Government Domestic IRevenues 1964/65-71 (In Thouisand of Jordanian Dinara) …__ _ _ _ _ _ 19…i4/65 165/&S_ 196lj._ 19,67 1966 8 1969 ] 97C) 1971 DINGOTIC RKVUUS 828 27333.310 2 f 97269 2 302'59 36,10( A. Tat Revemies 92_ 20,521 1'7.927 18.272 i&093 22.9 9 2 ai59 23,68 1. Indirect Taxeis 13,872 13,011 15,965 16,115 17,270 20,715 18,965 20,757 CuB8t ( 3 (8,199) (8,847) (10,650) 9,103 7,686 Erci8e-) (10,,053) (1.3,932) (12,954) (5,054) (5,515) (6,C86) 5,0'34 6,752 Licenses (1,,05) (:1 8l) (1,259) (1,010) (1,iao) (2,173) i,876 2,472 Fees (2,765) (2,598) (1,752) (1,852) (1,498) (1,808) 1,5:39 2,339 Additional Tax(- -)(- ) (- -)(- 1, 353 1,5013 2. Direct Taxes 2,020 2,510 1,962 2,157 1,823 2,277 2,494 2,923 InoDme TarX/ (1,,06) (1,907) (1,818) (2,055) (1,778) (2,239) (2,471) (2,845) Property Taxe( 614) 603) (144) 02) 45) 38) ( 3 83) B. Non-Tax Revenues 7,936 5..231 ;,383 7.225 7.176 92528 8,8oo 12,415 1. Post, Telegaph & Telephone 1,246 1,396 1,309 1,287 1,004 1,067 1,011 1,155 2. State Domain 69 72 97 83 66 87 53 42 3. Oil Transit Waes (included in '"iscellaneous") 1,185 1,249 1,187 1,018 3,527 4. Interests & Profit.s 3,484 1,831 1,7C5 2,055 2,883 4,66]1 4,819 5,118 5. Miscellaneousc 3,137 2,912 2,272 2,615 1,974 2,;46 1,8,99 2,573 Sources: Centra'l Bark of Jordan, aid Ministry of Fiinance. a/ Nine months only. b( Including Military Service Tax and 60% of Social Service Tax. c/ Including 40% of Social 9Service Tax. g/ Consisting cf Ba.idig, aziJ Land Tax, Land Tax, and Livestock Tax. NW1!s 1971 fipgro sre estimates. Talle 5.3G JAlI - (;overnment Fore L: Ice1p5 194671 (IrI 7easda of Josdanian Dinurs) 19hiN/65 1965/66 xw66W 196S7 1968 1969 197C0 1971 FC._IDN RCKPrS 2 __ 22 R _J01 37,703 '42 56 A. IMdet SMEet 12682 836 L92 16,3896 250 7553 33,070 34,927 :1. U. S. A. 12,1,L 11,436 6,629 6,126 1,9149 __ _ L6,976 ;2. U. K. 1,500 1,1400 1,300 914 - -- -- - - 3. hrab 9,1506 37,6D1 37,553 33,070- 17,951 B. ZBconoaic and Technical Assistance l72 _jJ36 3722 2.39*4 407 1. U. S. A. 1,647 1,912 1,349 '770 3L3 819 266 384 2. Most Germazw 78 50 36 80 -- -- -- -- 3. Arab Loague .474 569 1,022 -- -- 2,072 It. Ford Fmoundation - -- 5 16 23 5 . Britishb Aid -*- - 500 -- -- -- - C. b-g ancyAid __ _ _ 35,-- __ D. Devel o.ment Loans _976 2j587 _ 165 4.292 i,38 4§87 2,279 3,741i 1. U. K. 70D 700 800 :185 827 1,25:3 262 1,768 2. 'iWst GCarmarxy 170 206 139 506 1,511 2ll 1:33 552 3. Kulwait 5,587 869 1,011 1528 167 559 277 242 is. I. D. A. 51 9 812 14O 721 361L 155 11*3 173 5. U. S. A. I. D. 75 747 1,053 977 7157 442 6. Saudi Arabia - -- 1,505 1,500 1,4599 500 357 7. Doimarlk -.- .. _ - 19 113 207 207 E. Allocation of SDR's -- .840 F. :I.M.F. Compensatory Financing _- -- __ 1,__1 Source: Central Bank of Jordan, and Ministry ol Finance NOTE: 1971 figures are estimates. a/ Nine months only Table 5.4 JCIRDJU - Government ExpendiLtures 1964/65-71 ln Tlhousands of Jardanian DJsmru) _196 6566 196 197 19i8 _ 1969 1970 197]. TCITiAL E;LPEITURS E 1s6 5.88 L8600 68.:55 80 i,20 88711o 85,0o18 A. Recwrrina, 74 9;8 32L110 28.1a 46559 &386 65.231 5,28 61,305 1. lDefense & PubliLc Security 21,551 22,151 16,865 28,061 38,418 45,976 38,134 39,026 2. dministration 4,,2t1 1l4,396 3,766 5,8J49 7,4U11 7,219 7,4'71 7,41 5 3. Social Services 5,695 6,234 5,221 7,505 8,069 8,725 9,808 9,664 4. JEconomic Services 1,1'1 1,336 1,096 1,1448 1,516 1,533 1,583 2,789 5. Commanication Sc Tranport 1,750 1,693 1,359 1,796 1,772 1,778 2,0:32 2,411 B. Develent 9.165k LL178 10. 23.96 23.3134 23,1_79 21,678 23,713 1. Deferne & Piuliz Security 59 62 255 496 45 189 80 68 2. Administration 4,099 2,157 1,555 7,630 9,452 5,oB6 2,9'6 83q95 3. Social. Servic es 1EIQ 539 823 2,]L08 1,8,93 3,675 3,885 3,880 Ec. Eonomnic Services 4,,010 6,465 5,786 10,(43 7,321 11,430 11,4'8 10,27'1 5. Commnaication & Transport 757 1,955 1,iB74 3,2'19 4,623 2,799 3,219 1s,099 Sour ce: Central Bank Of Jcr dan, and Minis try af Finance a/ Nine months only NOtE: 15970 and 1971 figures are astilmates. Table 6.1: JCDAE - Monetar Sw'vey of the Barki bTtem1964L1L (In Thasazide of Jordanian Dimrs) Rod of Pariodt 1PS4 196!; 1966 1967 1968 1969 1970 197L 1. Fcrsien Awts BiM.t2 «09 67 X53 236 C197.9Q5 S89 iai2 ;59- a. Central Bank 25,T h8,957 58,835 87,156 101,5g1 93,7149 91,3102. 89,237 b. Cassrc±a Bank 21,732 10,047 7,2lY 5,3C04 6,3 2I 4,835 6,067 3,072. c. Discrepancy W,O3 985 1, 054a - -- -- 1 2. Claims on Private Sector 27,886 31.642 4 36.877 3839 44,19 3. Claims on Palblic Sector 1.610 2.06i4 2.6154 2.921 3.684 10.6149 L6.C 27, 529 a. Oorerenat & Semi-Governent - -- 75 -- -- 7,713 13,2a15 24,275 b. Municipalities & Public Corporations 1,61O 2,0 l4 2,579 2,921 3,684 2,936 2,829 3,254 ASSEl'S - LXABIlIlrI3S 81,518 93,655 107,011 l32,258 14s9,90C 152,701 157, 028 164,757 1. bne hIUVl139 757 147.118 2;J3 -71237 2LV 96221 10.h62 107.199 a. tkuiTncy Issued 24,3190 27,635 31,883 53,0118 65,310 73,144 B4,l410 84,595 b. Leess: COrrencyr Held by Banks -1,366 -1,283 -1,551 -1,499 -1,764 -1,852 -1,580 -1,587 c. DSeLand Deposits 16,733 20,766 25,701 23,718 24,431 24,929 23,032 24,989 2. guani-ney 109 .7 19.752266 6 27,114 3. Governucent and SejL-GoveYenmnt Depsits 16.52 AL.768 I& 2(V 27.229 28.634 17.95 11.210 7,828 4. Foresi Liabilitieas 2.720 2LAo 2.937 2.704 2.63 6 396 689 2,665 5. Other It _ __ ___ 30 LL.42 13.05'1 8I 9824 1243 13_COO 19,153 - AJ et) _ __ _ _ __ __ _ _ _ Sources Central Bank of Jordan I/ Unexplained difference tetween the a®ate balaance sbeets rr the banking system, and the indiLvidual Central Bank and C rcial Banks' (coniolidatad) balance sheets, for tbe early years. Table 6.2: JORDAN - Analysl. of ChaAges im Money SMjL 1L -7l (In Thousandsi of Jordanian Diinars) '1964 :L965 1966 1967 1968 19P69 1970 1911 llet a Erxgs PFetwi r ous FerLod Iris I~ ~ ~ ~ ~~~~~n 1. OCrrency fEtd by PufbLic 2,631. 3,328 31,980 21,187 12,027 7,746 11,138 578 Of whicdh Cuprrnqr Issued (2. a.) (3,245) (4,248) (21,135) (12,292) (7,834) (11,266) (185). .2. Dpand Dspst. 1445; 14,033 1I,935 -1,983 713 498 -1,897 1,957 3. T.ime and Savingis De .pits 2,670 3,178 2,798 -949 2,001 1,779 1,051 3,447 I ."7 6 hMD _ 184- 3 .71 10B,23 10, 2 5,982 ]Factors Afectin mey suppz -L. Fve.grgn Asseto (Net) 16,04'; 7,277 7,607 25,540 15,513 -10,081 -1,507 -3,887 2. Credit to Private Sector 3,0i31 3,756 5,562 -327 1,442 5,149 1146 864 3. Credit to?Iunicipalities & Public Corporations 689 45L 515 342 763 -748 -.107 222 14. Public Debt; -- -- 75 -75 -- 7,714 5,502 11,16o 5. Gove rrent & Semi-governlent * Deposits (- = ixrrease) -9,901 1,7.64 -437 -12,024 -1,405 10,639 6,785 3,384 6. CapitaLl & Reserves (- * increase) (n. a.) -1,160 -:1,933 -570 -1,435 -1,719 -2,15,4 1,481 7. Otr F:two (- ncsmresse) -4,100) -1,552 3214 5,369 -137 -931 1,627 -7,242 Source: Centra Bank of JordLan Table 63:_ JCDAJ - Assets & Liabi:Lities of the Central Ban of Jordan 1964-7L (In Thouuands of Jordanian DILnars) lExi of Periods 19i4 1965 ]L966 1967 196c 1969 1970 19.71 1. Gold & SIMR 1.219 2]L218 12.002 12.008 12.9T1 13& Gold -- 1,219 1,218 2,342 12,002 12,0C0 12,031 12,014 SMI'S --- -- -- -- 960 1,833 2. Assets in Convertible Currienrieas 25.777 47.T31 5j.617 84.270 85'L09 81.684 78.203 74 836 Balance & Dspoits 740 24,939 29,036 52,744 54,1397 60,505 58,996 56,942 Treasry Bills 1I,259 10,322 15,071 14,738 12,1519 9ell 1,441 32 Secri ties 10,778 12,477 13,510 16,788 21,393 20,198 17,766 17,862 3. Other Foreijm Currencies ---- -_ 544 ]470 5 128 556 4. Assets in Jordanian Currencies 1.27687 ^4W 4X!?9 7.333 15684 22 Treasury Bills -- -- -- -- 3,948 8,179 12,592 Gover rnnent Bonds _-- -- -- - - Special Account -- -- 5,358 4,851 3,280 2,661 -- Other IL05 1516 87 80 88 105 4,844 1o,684 ASSETS - LIABILITIES 21L82 49..13_ g8922 ___20 L01,082 C16.986, 112,513 1. Oarren:y Isiued 34, E76235 883 53.018 6 31 73. 84 41c! 84,595 2. Oarrent & Itnoosit Accounts 18,299 874 6403 37502 23,33 15,885 17,426 Goverunent d Public CcirporaLtions -- 10,403 9,995 18,527 21,570 10,880 2,768; 2,356 Banks 365 7,843 13,475 16,938 15, 606 12,54,9 32,846- 14,868 Other - 53 404 938 326 102 279 202 3. Other Liabilities ]L27 1.33 399 82 17 16 36! 64 4. Capital & R3BUveS j2.766 ),09 2 4.5691 6.651 lo,428 Capital 1,0D00 1,000 ;2,000 2,000 2,000 2,000 2,000 2,000 General Reserves 843 766 1,091 1,691 2,59(1 3,691 3,133 4pecial Reserves -- -- -- -- -- -- 960 -- SDeciaL Account -- 5,295 Sourcle: Central Banl: of Jcordant TabLe 6.4: JCEDAN - Consolidated Balance Sheiets of Comercial Banks 1964-71 (In Thousands of Jwdanian Diznars) Noi of AaModt 1964 1965 19i6 1967 L968 1969 1970 1971 1. aLiLd Assets 1.606 c1,928 14.826 181: 17.45° 1.436 34816 ]449 a. Cash (local MUarrTe 1,266 1,132 1,551 1,499 1,7614 1,852 1,98O 1,587 b. BaIances with CGeoi Banl 340 7,796 13 275 16,94a94 51,686 12,584 12,863 i]4,862 2. Foreign Assets 24.732 1(V 4 7U.264 54 §.324 4_ 3,072 a. Cash (foreign curkwary) 9 12 15 3 9 8 7 4 b. B&lances with Fa<*Apn Ranks 24,496 9,799 7,206 5,246 6,273 4,798 5,4,t4 2,347 c. Iinvestasnts Abrocd 227' 236 43 55 42 29 586 721 3. Domestic Assets 12,442. 3S.428 395 40.576 42.882 46,878 67 748,o84 a. Balances vith Loce Uanks 3,6612 L 1,722 620 788 883 474 314 258 b. BiLLs Discounted 8,541 9,250 9,849 8,321 8,c29 8,892 7,964 8,124 c. Loans & Advances 4', 2tl,C49 29,132 30,565 '2,968 36,,497 37,5814 38,804 d. Investments in Jot'm 222 407 794 912 1,002 1,015 895 898 4. Oter Assets &i4411 5.612 780 6.468 4.594 856 8:732 14,592 a. Goverrment Bonds 4 Alls -- -- - -- -- 3,765 3,341 8,553 b. Bills Receivable 7715 1,398 1,697 768 843 1,002 791 920 c. Fixed Assets 930 1,203 1,3L4 1,436 1,840 2,036 2,239 2,222 d. Other Aaseta 22,74o 3,0IL 4,769 4,2614 1,911 1,765 2,361 2,897t ASSETS - LIABIITIEi 63b20B c 015 _05 70.801 ;11.54_ ___ _____ 63.20B 60.015 70.~~~ ~ ~~~~~~ ~~~~~~~~~~~~~~265 29 '?.. 714.717 § 82,21 97 1. Foreign Liabilities 2.72 3.335 _ 876 2.6 2.568 3.299 ____ a. Deposits of ForeLgi Senks 766 1,240 1443 3149 378 408 5'25 41'3 b. Deposits of hIh.4.-rdents 1,643 1,987 2,1L45 2,131 1,849 2,539 2,533 2,077 c. Loans from Forei8t Aanks 311 108 288 156 341 352 478 - 2. Doauitic Deposits! 50,185 43,798 Sa720 , 3 ,5662 63,50:2 a. Govermient & SO- 4^ornment Deposits 16,532 4,366 5,211 8,82:3 7,1416 7,508 8,7T43 6,109 b. ? Wnicipalities & htsiic CorporationS DeposLts 2,381 1,990 1,023 1,80`7 2,001 2,032 2,C953 2,651 c. Frivatet Sector Lepnitis 28,610 315,761 44,1462 440,627 l42,915 45,320 43,145 48,816 d. Deposits of Jordan. Banrks 3,112 1,681 1,024 6190 871 357 1,184 5,925 3. Other Liabilities 5,5C0 7.759 968 9i"L 8.41L 831 0 8.: 8,177 a. Loans from Centr- U-nks & Local Banzs -- -- 54 -- -- -- 259 694 b. Eills Payab)e 280 508 786 353 483 545 1438 e. Other Liabilitiet 5,226 7,251 8,828 9,628 7,928 7,765 7,556 7,002 4. Cspital Reserves 4.75g7 5.123 j= _7891 8 022 a. Capital 3,665 3,677 4,202 4,298 4,352 4,682 4,715 4,715 b. Reserves 1,1 2!' 1,446L/ 1,799 1,939 2,720 3,209 3,270 3, c7 Source: Central Baen of i0twran a/ Including clebentures, at*ich are included in Other Liabilities (3c) for other yearsr. Table 6.52 JClDAN - Consolidated Balance Sheetea of the WeciauLized Credit Institutions 1967f71 (In Thmsands of Jordanian Dinmrs) Endi ct Period 1961 1969 _ 1971 :L. IL iaui .sts 1.992. 2.565 2i.33 2,600 Cash -- 1 -- EBalance id.th Banks 1,854 1,5525 1,902 1,340 1,088 Ekalance with CentraLl Bank -43 151 163 ?77 324 Goverment Bonds & ilS -- 1400 618 768 Other 95 ]18 102 102 420 2* legoiable Assets 160 3 5225 3. Ioans to: 12 080 2 §9 j072 14,367 Private Sector 8,165 8,886 9,285 9,736 10,093 Pubbl: Sector 3,915 4,534 4,084 4l,341 4,774 x4. Ee Asents 272 422 437 341 5. Other Assets 45 84 80 148 277 ASSIT'S - LIABMITIES U.L549 _4 _L6_961 17,.9 19,138 1. Crarts & Akid 120 3614 3348 Publi,z Sector 120 225 364 325 348 2. Elorrowing From ,595 5.028 5.22'8 ,;.55 5,976 Gaovernmer t 460 1,:L59 1,753 1,868 1,804 Central Bunk -- -- -- -- 225 EFcreign Institutioju 3,699 3,293 3,475 3,577 3,697 Other 436 576 -- 150 250 3. Other Liabilities 568 1457 609 2,025 1,020 14. Capital & Reserves 59,266 10L104 .10,760 lJL,039 11,794 Capital 8,751 9,5144 10,0937 10,528 11,247 Reserves 51i5 560 635U 5147 ___ou ce-7_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . Uiourcl;ext ( mnka Jordai TableD 6.6 t JCEiDAN - Sectoral Distribution of Comercial Bank CredLt utaE3964-71 (In Thousands of Jordanian Dinaras) End of Periois 1964 1965 1966 1967 '19615 1969 1970 197.r A-*AL SAM 3.9 i&& 3 884 8 46 _c28 -1L. ardnicipalities & Pub1ic tcWparAt:Lonts a1$o 2,0614 2,'579 2,921 3,694 2,93i 2,829 3,029 :2. 4iculture '860 678 63 767 717 583 '799 m Mining 223 1.2 '30 14 10 152 729 (672 I4. *IrduUtry 3,326 4,321 -4, 723 4,232 4,012 .4,C52 4,029 3,916 Ge. Geixral ComtwLce Trade '1441i08 17,075 .Z0,335 17,1352 17,076 19,C59 16,890 18,964 6. C,t&"Aftionn 1,0133 1;711 2,371 4,064 .5,CiB9 6,e087 10,337 9,760 i'. Tx nsam*tation .2,590 '2326 '2, W146 1 ,789 1,5514 .!,426 2,616 8. Tourism, Hotels & -leaerTvatinsm 809 c953 '993 -1,,1C 999 1j,003 978 886 9. FY.nanciaL Isatitutiobns 226 1143 -330 196 188 193 184 :254 10. Professional & Private Individfails 1,1466 .1,'7C0 2,247 2,138 2,456 3,0665 4,142 3,278 LL. PLrchase of Land & Bairdings 1430 1740 `896 '958 .1,001 1,01;2 891 746 12. Other 1,513 1;,57'6 -1,726 :3,369 .4,039 5,558 1,530 2,008 *';rcfie*: *CentraL B fil -J4rdan Table 7.l JORDAN - AgeriLturL Pri>^uction l9iL- (In thou. andis of metric tons) 1961 15o62 1963 1564 196', 1966 1967 1968 1969 JL970 Whieat 138.,0 112.0 76.0 294.7 277.9 101.2 239.7 116.2 - 159.3 54.L Barley 62.0 36.0 23..0 97.2 94.8 22.8 77.7 24.1 42.5 5.1 Tobacco 1.6 1.2 0.3 2.2 1.1 1.6 2,1 2.1 2.0 1.6 Other Field Crops 29.0 31.0 18.0 5;6.8 64.9 25.4 56.1 19.8 31.3 11.4 Tomatoes 214.0 169.0 215.0 227.8 188.,9 179.0 259.7 152.9 150.1 137.4 Otlher Vegetables 319,2 325.0 202.6 224.2 234,.1 2:32.2 282.2 85.6 69 .1 55.0 Olives 114.0 - 39.0 98.3 37.4 32.7 64.0 36.3 23.9 3.9 Grapes 78.4 79.0 58.7 76.9 79.2 61.9 71.6 19.34 ll.2 6.:2 Citrus Fruits 16.3 21.4 38.8 37.1 47,,0 48.9 61.4 37.3 24.3 18.0 Watermnelons - - 120.4 159.5 160,.0 47.7 118.4 82.2 53.2 22.8 Other Fruits 52.6 557.6 46.8 49.8 60.4 l54.3 64.8 20.1 27.7 22.5 Sources: ministry of Agriculture for the years 1965 aLnd 1966. Department of Statistics for the years 1967, 1968, 1969 and 1970. Data for the years 1969 atnd 1970 are for the East Bank only. Table 7. 2: J DhI- Land Ownership Structure. Baq'A Valley. 1970 of et r of Owmras Pae Village Parcels Plaotio Snbres I8tlELatedL O r Abu-Haemid 2 43 2,692 87 54 49.15 HLbis 7 3100 11,2:17 71l5 1442 25.38 Abu-lalier 9 238 1,9'39 572 353 33.82 UI el.-Dananeer 4 1 4,139 123 76 54.46 S41ibjr 1 6 896 27 17 54.0O Bi4 R-LBah4 13 678 25,2!50 1,768 1,092 23.12 Safout1 10 357 7,872 1,J249 771 10.20 Fhia 2 52 1,04's7 72 44 33.50 &uweilsh 5 901 3,55!4 1, 374 8149 4 .19 Jubeiha 1 13 236 81 45 5.224 Totial 5 2,629 69,269 6,068 3,7143 18.145 SousFc.s TbJ data has beet adopted from Jor"da Lamd Departsmnt records, Aan, Jordai, 1970. TABLE 7.3: Irrigated lands of East Jordan (at the end of 1971) (Area in hectares) IT Below Mediterranean se Alevel (with frost free rlinAte) I. JorWdar Xaley (East eie a. Zor, close to the Jordan P;ver 1 b. GAhor, below East G-hor Ca n 2/ 11,700 c. un or, from wadis, above Canal:. 50 d. unor, partly from gro-ndwater 2,700 2. Lower valleys of tributaries 1,500 3. Southern unors e, (OV to 3,7 iia) 2,7w Total 19,160 19,1ou II. Above sea level (intermediate and continental climate) 1. Secondary valleys (surface & spring water) 5,uuu 2. Highlands and plateau (mostly pumping) . yu0 Total: 5,900 59°00 Grand Total: 2 Q 1Q*C Table 7.4 : JORDAN Area and Production of Principal VcgeLabI4; Crops, Citrus and Bananas ir the Northern, 14iddle and Southl'rn Ghor Aieas in the East Bank, 2.970 (Area i3n Dunu,wlk, Proauc-,i.ori in Tons) Northern Ghors Middle 0hars Southern Ghors otal Crops Area Production Area Production Area Productioh Area Production Tomatoes 24381 73143 15700 23050 24120 26920 64201 123113 Eggplants 12007 2845 9600 19200 456 72 22063 22917 Cabbages & Cauliflower 3825 8301 1790 1940 - - 5615 10241 Onion & Garlic 1533 2258 1375 687 92 154 3000 3099 Potatoes 606 1212 370 740 10 10 986 1962 Narrows 5100 6667 2360 3845 82 82 7542 10594 Cucumber & Fakkus 363 544 890 1000 1143 873 2396 2417 Pepper 3065 4597 2205 1102 96 76 5366 5775 Green Peas 700 486 476 377 185 92 1361 955 Broad Beans 2600 195 3750 3610 109 109 6459 3914 OKra 325 -175 650 325 - - 975 50G Watermelon & Melons 2248 6744 1430 4425 433 408 4111 11577 Bananas 8500 6375 1170 1540 - - 9670 7915 1/ Citrus 12897 45010 1880 3705 533 154 5310 it869 Others 235l 5243 2117 829 342 307 4813 6371 Source: Min-istry of Agriculture 1/ Citrus production confused due to sale ir: East Jorar:, frutit g;rouln on, ezt Lai!z. Table '7.5: JOARJ 965 AGRi:CLTLUR t ENTSUS . RESULTS NTUMIE 0F HOIDINGS BF SIZE IN DISTPR'CTS -… ~ ~ ~ ~_ Size Groups 11 Dfu&M Kingdam Jenizi Eabm Jerusam He'brom Karek Ma' an Irbid. EaiqaL Am Zerka Lea s t;h:n 10 339,86 2683 92. 5 99114 5566 852. 3118 3496, 1034 595 245 0 -1 9 10194 860 237-' 2311 1'207 3714 .77 1855 560 302 91 '20 - '9 9361j 678 22i F 1 7'?3 890 59, 1:28 1957 497 524 7'4 30 - ,39 7621 494 1 -2 1195 585 51414 110 2155 -452 471 5,7 40 .- 149 53194 389 1 770 364 1495 95 1535 241 4114 39 50 - 99 14221 11018 23'Ii] 16:29 7785 1387 3,36 4515 ' 660 1370 1314 100) ' 199 8003 396 9-' 561 267 939 21 8 29560 443 1107 1219 200 - ,499 37145 120 27Z 1,40 .92 557 1 03 1.518 214 691 87 5x - '999 688 114 : 23 46 83 '16 276 31 165 12 ' CO) - 1999 198 2 2 12 '19 7 81 11 4.9 5 2000- 4999 60 1 1 - 2 1 13 1 32 2 £000 - 9999 16 - - - - 3 1 12 'I000 & Albove 2 - - - 2 TOT4L 931492 5655 20281 18319 9815 588 1409 20365 141145 5734 875 1 d -um 0.1 hectare. So^-zo: 1 96, IcritItu.al C^nzss, -D-'.Gc ¢+2+zti - AD CID t- CD ,i t , D ,eG I^ t W,> c- vv.,~~~~ V-) I vwv~ f_, 4 't 47Vo Karak 38 6231 6269 i9241 Ma'an - 759 759 476 1961 2437Q 476( 27L 319) East Banl J 1701 29287 30988 j 196581 54314 73972 j 21359 83601 104960 A^1r. Depar Pn of e St TAatistics.n nnd Ixbor Force in the .4,,rliilt:re rI lg7j Department of Statistics. Table E.l: JOEflMi - Size rd.stribution of East Bank ManuufacturiLn E nte r 8ses 19?r) Number of employees _ Firms W_rkers per enterprisei Number, Number Less thanm5 5,240 ZO,.3 9,97-6 47.9 5 - 9 334 5.8 2,'148 1C0.3 10 -- 24 155 2,.7 2,.173 10.4 25 -- 99 60 1,.0 2,516 12.1 100 and over 15 0.2 4,0114 159.3 ALL ENEURPRISES 5,804 100.0 20,827 10(.0 Source: Hashemite langdom of Jordar; 1970 iManpower Survey (data processed by the Manpower AdvLsor, Jordan Dairelopment Board). Table 8.2 t JORDAN SPIMMNT 1L N ALln MlED GBt LUBB DABTBIAL BGTEPI ^ 19* Value Addeid Number of' Nurnber of % of Value Adced IC of Vallue per Worker Branch of Irchsti Establishments Workeirs 'Workers in 0M Ds Added in JDs 1janrufacturirLg Food manufacturing 13 432 5.9 304, 2.8 701 Beverages 3 79 1.1 179 1.7 2,266 Tobacco 2 6514 9.0 79;5 '7.2 1,216 Textiles 8 817 11.6 ,367 3.4 433 Clothing 3 134 1.8 53 0.5 396 Footwear 3 314 14.3 -L80 1.7 573 W.ood _ - 0.0 - 0.0 Furniture 3 158 2.2 76 0.7 121 Paper 3 255 3.5 54 0.5 212 vrinting & publishing 3 310 4.3 1L10 1.0 355 Leather 1 136 1.9 :L51 1.4 1,110 Rubber ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- 0.0 0.0 Chemicals 3 327 4.5 684 6.3 2,)92 Petroleum 1 935 12.8 2, 149 22.6 2,618 Non-me-tallic minerals 3 819 11.2 2,1465 22.7 3,t)98 3a.sic metal ind. 4 277 3.8 1,:L34 10.5 14,094 flon-electric machinery - - 0.0 - 0.0 Electric machinery and i.mplement;sa 2 330 1.5 :137 1.3 liL5 Total Th007 9,135 MThiing 3g Ph,asphates 1 19284 17.6 1;708 15.6 1.- Totai 56 7291 100.0 _10,146 100.0 1,148 * Enteiprises with annual output in excess of 50,000 JDs Source: Hashemite Kingdom of Jordan, Department of Statistics, Thie Na,tional Accoumts 196'7-69 Table 8.3,3 JORIfAN Gegraphic Distribution of East Bank: Manufacturing mLn p1yij5 Worker.s or More, 1970 Numb,er Number of of firms workcers Amian. 521. ( 512.%) 9,1337 ( 90.7%) Balqa 31 ( 0.5%) '729 ( 6.7%) Irbid 36 ( 6.14%) :236 ( 2.2%) Karak 3 ( 0.6%) 4l ( 0.,4%) Malan 1 ( 0.2%) 8 ( 0.1%) TOTAL 5614 (100.0%) 10.85l (100.0%) Source: Manpower Survey, 1970 as processed by t,he Manipower Advisor to the J. D. B. Table 8.4: JORDAN Industrial DeveloEment Bank Loans 1966 - 1971 in '000 JDs Total Loans New Industrial Year OutstandingWv Loans Arxroved 1966 970 575 1967 1, 368 367 1968 1,601 479 1969 1,829 748 1970 2, 307 n.a. 1971 2 ,745ˇ 300J/ Source: Industrial Development Bank / includes due but unpaid interest ua 6.1P SweptloeIumboer 3' 3 U-lMonth estimate. Table 8.5: OiEA1i jmereniet _partila,io in Pziiat _Cmpano Nomin.il S :oek Value- of _ Gov2rnmerlt Shareholding P3id ul C Com.pany Cepital Clipital She.re Shnres JDs Cq. pi te:L _- _ . _ I__ _ _ _ , , 1 -- Jordin-Cemant Co. - -4,500,030 450,000 10 222,750 2,227,500 4,500,000 2 - Petrolculn Refinery 8,300,000 1,,00,000 5 83,50J 417,500 G,680,(00 3 - Phosph7.t2 Co. 3,000, NO 3,, 'N,C,30 1 1,904,413 IL,908,450 3,00C,000 4 - Veg2table Oil. Co. 500,030) 50C,0 03 1 178,805 178,806 443,682 - Jordcn Fisherics 'Co. 100,:0') 100,000 1 16,357 16,357 51,357 5- .^a Phenneceuticel. M..nufacturi.ng S - . 250,030 50,000 5 11,00) 55,000 253 ,000 7 - Jordan P.p2r Indu.stry Co. 600,000 600,003 1 387,715 387,715 603, 000 G - Linnaing Comp:ny 400,D0) 30,000 5 20,000 100,030 400,03C 9 - Jordmn Hot:ls & Tourismr Co,. 723,400 723,430 1 620,300 620,002) 723,4fiC 1' - .r.ab Pot:sh Co. 4,531,00J 9CSC,2'D 5 100,000( 53,300 2,173,0-'3 11 - Irbad Eluatric Co. 1,03O,C00 1,00Cv,003 1 178,852 173,852 632,4'05 1_ - Jordmn ZElectric Co. 3,300,000 3,300,000 1 33,528 33,528 2,577,735 I 13 - Holy L-nd Hotels Co. 600,000 120,;03 5 100,006 500,030 505,745 - Industri-.l Cos.mm-2rci1 t;gricultural Co. 1, Om, G000 1,'v0, 00 1 28.683 28,6O3 765,752 - Hur=eh Hot Spring: Co. 85, 000 85,003. 1 35 00() 35,;3000 62,264 i6 - ;!rr ..7n Bus Union Co. 8-30, 000 00,000 13 45,767 457,670 799,392 17 - Jor:in Con2Fection2rias & Chocol.e:2 F:.ctori.s Co. 150,03 0') 150,000 1 23,904 23,904 57 5 0 ' - Jordan Worozod Mill3 Co. 500,000 50,0030I 1 110,800 11u,8;:;3 5 0, 03 0 19 - Tou-isr. T---b3port Co. . 300,03 D00,03 ' 1' 25,000 25,000 M292,25 2' - Industri'-l Dev_±lopn8nt Co. 250,000 50,000 5 14,195 70,975 230,0030 2'. - J6rdin D.iry Products Co. 10), 000 103,000 1 30,030 22,530 49,236 22 - Jordsn B!'Iccri_s Co. 100,003 130,000 1 26,000 2.6,03 65,B5' 2_ - Z.qlb- Hot:2ls Co. 300,000 ,-.,0G0 1 130,000 1`0,003 28,0E!vG ^74 - Jord.2n Cm:Cmic F:nctories Co. 75,030 7 5,033DO 1 10,0 00 2,59)0 7,75 k,.0 - Incu3tri-.l Devo1oprmcnt B>rck 3,003,000 3 ,03,.;3 30 1 1, 099,00o) 1,S09S D30 1,999,278 2v - Ag.-icultural Klrk:2ting Coporation 50;,0v;3 030 1 20;100 234c3 _2.0 r)44 34,434,430 1 9,55775 27,982,087 Table 9.1: J0)AN - Th1B Aunan u nd Zarka Coat of Iving Indlex 39771 (Wsight) 11967 1968 1969 197'0 1]971 Al04 A1;1 IXl8 ilcrocl) loo00.o 99.7 2 07. c 111&.8 119,'7 All Itn jloo.o) 10. 0.5JI. FiDod ( 35.0) 100.0 97.8 118.8 128.1 136.0D HoDusing ( 32.3) 100.0 10CI.9 101.'2 10'7.3 111.3 C:lothing ( 12.1) 100.0 9S'.5 101.3 107.2 112.4 Other ( 20.6) 100.0 101.1 101.3 1013.5 109.9 ZARKA All Items (100.0) 100.0 100.4 104-.5 112.2 119.1 Food ( 35.3) 100.0 98.1 110. 14 113.9 123.6 Housing ( 33.5) 100.0 102.14 :1O1.1 109.5 113.6 Clothing ( 13.2) 100.0 10(.9 -:100.4 112.4 122.4 Other ( 18.0) i00.o. 101.0 :103.0 113.5 118.4 Source: Department cf Statistics; NOTE: Figures are bEsed on a random sample survey carried for families of wage earners in private and government civil establishments whose monthly wages range from J) 21 to JD 60, and are averaged for the year. Table 9.2: JORDkN Average Monthly Salaries in the Private Sector 1970 in Selected Occupations (in JD's) Occupationjn Starting Salarv Present Sqal v General Manager 110 1L6 General Clerk 25 40 Typist 20 35 Cashier 23 7 Telephone Operator 15 22 Messenger 12 20 Driver 26 38 Ele ctri cian 26 63 Heavy Motor mechanic 20 28 Mechanical Engineer 100 119 Electrical Engineer 66 128 Civil Engineer 142 174 Surveyor 53 105 Laboratory Technician 31 36 Elementary School Teacher O h9 Calculating Machine Operator 18.6 30 Source: Survey of Wages and Salaries in the Private Sector 1970, Department of Statistics NOTE: This survey coverel 36 occupations. The sample size was small (638 persons) and only large enterprises were included. The data may therefore not be representative of wage/salary levels and differentials in the whole countrv6 Earnings in small firms tend to.be lower0