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1516
Ottoman rule over Jordan begins
During their rule, which lasted four centuries (until the end of WWI), the Ottomans largely neglected Jordan other than collecting taxes. This resulted in a population decline, which stifled economic development (and really, development of any kind) by limiting urban development. The population became largely Bedouin, and tribes often raided and attacked each other. This was exacerbated by the fact that Jordan's arable land makes up a very small percentage of its total land. -
Beginning of the British Mandate
During WWI, the Hashemite Army took control of Jordan, in large part due to the support of the Bedouin tribes. After the war, the British and the French divided the Middle East, and Transjordan fell to the control of the British. The British placed control of the territory under Abdullah, the emir, who later became Jordan's first king. -
Emirate of Transjordan is established
Britain grants Abdullah full autonomy over Jordan. While he was not Jordan's first official "king" until 1946, he was the first ruler of Jordan when it was still a British Emirate. Abdullah I's main goal was Arab expansionism into a "Greater Syria." He supported the Peel Commission and Partition of Palestine in the 1940s, despite widespread Arab opposition. But he also set precedents for Jordan's strategy of maintaining diplomatic peace, which explains his actions against Israel in the 1950s. -
Jordan gains independence from the British
Abdullah I is crowned Jordan's first king in Amman. Because he had worked so closely with the British--particularly in pursuit of a "Greater Syria" controlled by Amman, Abdullah was mistrusted by many Arab leaders. To make matters worse, he supported partition despite opposition from every other Arab state. He attempted to annex as much Palestinian territory as possible, but was drawn into a war with Israel in 1948. This allied him with other Arab leaders, but caused a refugee influx. -
War with Israel--and refugees
Jordan's economic history is heavily influenced by regional conflict--particularly when it comes to refugees. 1948 was perhaps the first regional conflict that resulted in population increases, when Jordan joined 4 Arab nations in attacking the new State of Israel. Jordan annexed the West Bank (in 1950), which increased their population as well as their landmass. That annexation held until 1967. The influx of Palestinian refugees tripled the population of Jordan. -
Founding of UNRWA
The United Nations Relief and Works Agency for Palestinian Refugees in the Near East (UNRWA) was founded in 1950 specifically to address the plight of Palestinian refugees in Israel, the Occupied Territories, Lebanon, Turkey, Egypt, and Jordan. Many of UNRWA's operational responsibilities fell--and remain--within Jordan's borders, and many countries (including the US) contribute aid to UNRWA that is then used to address the structural challenges for refugee-laden countries like Jordan. -
UNRWA funds to Jordan
It's important to note who was actually benefiting from UNRWA's funds. Contrary to expectation, the aid was going to middle-class peasant societies, rather than poor Palestinian refugees. These were farmers and landowners, and the programs enabled them to actually leave the country to seek other opportunities by providing them business training. When coupled with their Jordanian citizenship, Palestinians became attractive employees in the Gulf especially. -
US begins providing economic aid to Jordan
In the aftermath of the Arab-Israeli War of 1948, over 50% of the Jordanian population consisted of Palestinian refugees. But Jordan had limited natural resources and only the beginnings of an industrial base, heavily dependent on foreign aid. The US provided foreign aid to Jordan to help support its sudden--and unmanageable--population increase. This dependence on outside aid allowed the government to direct economic development, which was characterized by an import substitution policy. -
Six-Day War, and Consequences
In 1967, Jordan once again engaged militarily with Israel during what would become known as the Six-Day War. The war crippled the military and reversed the progress that Jordan's economy had made since 1959, while also catalyzing another wave of refugees after losing the West Bank to Israel. Jordan received aid from Kuwait, Saudi Arabia, and Libya, and eventually the US and UK increased/resumed their aid, which in turn increased Jordanian dependence on foreign aid. -
Loss of West Bank -- and more refugees
The West Bank loss didn't just cause refugees to pour into Jordan; it also cost the nation almost 40% of its GDP. While the US gave over $250 million to Jordan, none of that money was allocated for mental or physical health. This was a crucial oversight, given that many Palestinians had moved from Palestine to the West Bank, and then from the West Bank to Jordan. -
"Black September"
King Hussein enters into an armed conflict with the fedayeen, or the militant factions of the PLO led by Yasser Arafat. The militants had set up a "state within a state" and then blew up 3 commercial jets after two attempts on the King's life. King Hussein then engaged in direct conflict with the fedayeen, driving them out. The conflict obviously exacerbated economic conditions, but also increased tensions between Jordanians and Palestinians that would impact unemployment and remittances. -
British complete withdrawal from the Persian Gulf
The British withdraw from the Gulf, catalyzing the Middle East oil boom. This is important for Jordan because high-skilled workers went to the Gulf and sent money back to their families still in Jordan. These funds, called remittances, make up a significant chunk of Jordan's currency earnings to this day. It ranks 10th in the world for countries that receive remittances, and remittances make up 20% of GDP. -
OPEC Embargo
In retaliation for US (and European) support of Israel during the Yom Kippur War in 1973, OPEC institutes an embargo against these countries and the price of oil sharply increases. While this hurts the US economy, it greatly expands Middle Eastern economies, all of which saw periods of high growth. Obviously, this includes Jordan as well, which saw a whopping 351% economic growth. No, that's not a typo. -
Construction of King Talal Dam
Jordan is an immensely water-poor country, and the King Talal Dam was one of the first initial steps in trying to increase water supply for Jordanians (and Palestinians) living throughout the country. -
Oil production plummets
The Iranian Revolution and the Iran-Iraq War results in a regional contraction in the oil economy, and leads to a sharp decline in remittances and foreign aid for Jordan. -
Jordan begins implementing economic reforms
As the oil boom starts to slow, Jordan begins implementing economic reform. Focusing on the manufacturing sector, Jordan's plan was to increase the value of manufactured goods--fertilizers and metal pipes, for example--to decrease dependence on imports. Unfortunately, they weren't the only ones pursuing this strategy; because so many other MENA countries were also pursuing this, the strategy did not generate much growth. -
Jordan seeks help from the IMF
Left with few options, as demand for Jordanian labor in the Gulf declined, the Jordanian government signs a Stand-By Agreement (SBA) with the IMF and in April implements a economic adjustment and austerity plan. Prices for food and fuel rise sharply, sparking protests in Ma'an and elsewhere in Jordan. The entire government resigns in response, and new elections are set for November. This spurs on the push for liberalization--these are the first parliamentary elections in 20 years. -
Gulf War begins
Jordan is seen to support Iraq during the Gulf War. Foreign aid plummets, and the agreement with the IMF is terminated in 1991. -
Jordan signs new SBA with the IMF
The stabilization process continues. Jordan's government reorients itself away from Iraq, repairs relationships with the US and the Gulf, and stabilizes its economy. -
King Abdullah II ascends to the throne
The reign of King Abdullah II begins, with an increased focus on the economy. He establishes the Aqaba Special Economic Zone and signs free trade agreements (FTAs) with the US to attract foreign investment and boost trade. -
Iraq War
The Iraq War begins, which disrupts the oil trade relationship between Jordan and Iraq. Jordan relied on Iraqi oil for its energy supplies, because these supplies were heavily subsidized. Jordan switches to Egypt for its oil supplies in 2009, a decision that would haunt them in later years as the Arab Spring begins. -
Arab Spring in Egypt
The Arab Spring begins in Egypt, and Jordan's supply to Egyptian oil is disrupted as well. The Arab Spring also puts a major dent in Jordan's tourism sector due to protests in Jordan and in surrounding Arab countries, but tourism has begun to pick back up in the last two to three years. -
Syrian War begins--more refugees
Since 2011, over 1.5 million refugees have fled to Jordan and settled largely in urban areas (outside camps). In 2017, they were allowed to apply for work permits, and they have access to basic services like health and education, but they still remain a source of cheap labor that drives down wages for Jordanians as well. Jordanians perceive the refugee population to strain the economy and increase unemployment, which is already over 18%. -
Cancellation of fuel subsidies
In accordance with an agreement with the IMF, Jordan canceled fuel subsidies, which increased fuel prices and led to another round of protests -
Protests break out over consumer goods tax
In an effort to reduce the national debt, Jordan's government imposes a 10-16% tax on cigarettes, clothes, and other popular consumer goods. This leads to riots and protests in multiple cities, including Amman. -
Jordan's prime minister steps down
Jordan's prime minister resigns amid the protests to the tax on consumer goods. He's replaced by Omar al-Razzazz, who is a former World Bank economist and is seen as a reformer.