Poverty in Jordan

Jordan is classified as a middle-income country whose government conveys a sense of genuine concern for poverty issues, allocating financial resources for social development at a proportion of national income which its regional peers rarely match.

Jordanian boys © UNDP 2001 / United Nations Development Programme

Levels of extreme poverty in Jordan are therefore low, the baseline 1992 figure of 6.6% for the purpose of the Millennium Development Goals (MDGs) having since reduced to about 4.0%. The national poverty line, assessed as the cost of basic food and essential non-food items, captured 14.5% of the population in 2007, according to the government. Independent sources however place the figure closer to 30% with a further similar percentage potentially at risk from the sharp rise in food and fuel prices during 2008.

Although there is some concern that the rate of maternal mortality is not falling in line with the MDG target, Jordan can boast an impressive health system together with almost full primary school enrolment for both boys and girls. Gender inequality is however apparent in employment opportunities where women are at a marked disadvantage. Despite Jordan being a front runner amongst Arab countries in supporting political participation of women, the 2007 election resulted in only 7 seats for women of which 6 were awarded by a quota system rather than votes. This problem will be difficult to rectify by 2015.

Climate Change and Water Scarcity in Jordan

Dead Sea © Batir Wardam

Human development in Jordan has always been intricately linked with scarcity of water, a challenge now greatly aggravated by the uncertainties of climate change. Although personal access to a safe water source is almost universal, Jordan is one of the ten poorest countries in the world in terms of water availability. Supplies in the cities are rationed so that per capita consumption is only 170 cubic meters of water per year, against the WHO scarcity guideline of 1,000 cubic meters.

This water scarcity, coupled with high population growth, requires a delicate balance to be struck between household and irrigation demands for water. The government leaves no stone unturned in raising awareness; its efforts include distribution of water-saving devices and the use of recycled water in agriculture. Having experienced five years of below average rainfall, the potential impact of climate change on crop yields and water availability has added an alarming new dimension to Jordan's intricate natural resource management. Friends of the Earth Middle East has even suggested that Jordan will have to abandon the use of freshwater for agriculture which consumes 65% of the resource whilst contributing only 3% to GDP.

Both Jordan and Israel are striving to find a way through Middle East political conflicts to inject a new lease of life to the declining levels of the River Jordan and the Dead Sea. High hopes have been expressed for a one billion dollar project to draw water from the Disi aquifer in the south which was launched in 2008.
The Economy in Jordan

Jordan Valley © GEF Jordan

Given that the two most important natural resources needed for development, water and oil, are in short supply, Jordan's main wealth lies in its human resources. High levels of education, vocational skills, and entrepreneurship characterize the people of Jordan.

The economy is hostage to the Arab-Israeli conflict and dependent on US aid which, at over $500 million in 2007, continues to rise sharply and which represents almost 10% of the national budget. Jordan has taken a more liberal approach in its economic policies than its Arab neighbours. This has included joining the WTO, establishment of a free trade agreement with the USA, establishment of the Aqaba free economic zone, and a full and not uncontroversial programme of privatisation. This approach has put Jordan at the receiving end of pan-Arab political conflicts but has created a progressive image in its drive for exports.

In February 2008 the government took the brave decision to remove subsidies on the price of fuel, softening the impact with increased funds for social welfare and public sector salaries. As commodity prices continued to soar in the first half of 2008, the High-Level Conference on World Food Security declared that Jordan’s economy was one of seven in the world most vulnerable to the rising cost of food imports. However, an IMF report towards the end of 2008 is more optimistic on the country’s prospects for riding out the global economic turmoil.

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