Democratic Palestine : 33 (ص 20)
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- Democratic Palestine : 33 (ص 20)
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in Jordan in its initial phase. Moreover,
Jordanian exports were affected after
the Central Bank ceased loans to many
domestic industries, and domestic in-
vestment stagnated.
What remained was the aftermath of
irrational overspending and growing
dependence on imported goods, many
of them luxury items, in line with the
growth of the parasitic commercial-
bureaucratic bourgeoisie. In the past
period, about 70% of the GNP went to
finance imports, half of them consumer
goods. On the other hand, the deficit in
Mass Protest
As King Hussein began talks with US officials in Washingtong D.C.,
his closely guarded home front exploded, rupturing the facade of
stability that had prevailed for nearly two decades. Jordanians
throughout the southern part of the country took to the streets, pro-
testing the latest price hikes and venting their rage chiefly on
government buildings and banks.
The direct cause of the outburst was
the government’s economic policy, but
the mass revolt is not unrelated to
political issues. For years, the Jorda-
nian regime has used the Arab-Israeli
conflict as an excuse for maintaining
martial law, meanwhile striving to buy
off significant strata of the population
with a degree of relative prosperity.
However, the consequences of the ag-
gravated economic crisis proved that
Jordan is not immune to the
phenomenon of bread revolts ex-
perienced by other countries. When taxi
drivers in Maan began protesting the
rise in gasoline prices on April 18th,
they were joined by people from all the
strata that are harmed by the govern-
ment’s economic policy. Over the next
five days, the revolt continued and
spread to Kerak, Tafila, Petra, Mazar,
Ghor al Safi, Salt and the surrounding
villages, as well as Tayyeba farther
north and Jabal al Tareq on the edge of
Amman; demonstrations occurred at
the University of Jordan in Amman
and Yarmouk University in Irbid in the
North. The regime dealt harshly with
the protestors; the army and security
forces opened fire on the people. Under
the cover of curfews and a partial
media black-out, 18 people were killed
and about 200 injured, in addition to
approximately 300 arrests.
THE ECONOMIC
BACKGROUND
The price rise that sparked the upris-
ing was a consequence of the agreement
with the IMF announced by the Jorda-
nian government on April 14th, which
also entailed an increase in direct and
20
indirect taxation, selling out public
companies and other measures as part
of a package deal whereby Jordan
would get aid to reschedule its $ 6.5
billion debt. This was the latest
downspin in the economic crisis which
burst into the open in November 1988
with the collapse of the Jordanian
dinar’s exchange rate; its roots,
however, lie in the dependent nature of
the economy and the regime’s reliance
on external aid. 1988 marked the end of
the steadfastness aid allotted to Jordan
by the oil-rich Arab countries at the
Baghdad Summit of 1988. This com-
pounded with other negatives trends in
the economy, such as the decline in
remittances from Jordanian citizens
working in the Gulf after the fall in oil
prices, and the reversal of the economic
boom which the Gulf war had sparked
the Jordanian budget rose to constitute
22% of its GNP, with Jordan owing
$1.2 billion on its $6.5 billion debt by
the beginning of this year, according to
the Central Bank.
The growing dependence on imports
in line with the growth of the parasitic
bourgeoisie has led to further distor-
tions in the Jordanian economy where
the service sector accounts for 60% of
the GNP, while agriculture and in-
dustry combined account for only 26%.
Productivity has even declined with
more than 35 industrial companies
declaring bankruptcy in the past two
years, according to official state
reports. At the same time, corruption
has grown rapidly, and big capitalists
simply smuggle money out of the
country, further compounding the cur-
rency crisis. Giving more maneuver
room to the private sector has
diminished the role of the state in the
economy, particularly in the field of
consumer protection, leading to waves
of inflation and widening class dif-
ferences.
The various measures taken by the
regime to stem the crisis have been
superficial and ineffective, and the
burden on the ordinary people has
become unbearable as seen in a few
statistics. In early April, a senior Jor-
danian economist and former minister
put per capita income at $1,050, as op-
posed to $1,700 annually according to
the World Bank in the early eighties;
the same expert put unemployment at
20% (AP, April 4th); some sources
estimate that unemployment is much
higher. This occurs in a period where
the government’s economic policy has
only meant price rises, and direct or
indirect reduction of employees’ in-
comes. Obviously, those with limited >
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