Jordan country brief - April 2008
Introduction
Australia and Jordan enjoy a warm and increasingly diverse relationship encompassing trade links and political and cultural cooperation. Australia established diplomatic relations with Jordan in 1975. The Jordanian Embassy in Canberra was opened in 1976 and the Australian Embassy in Amman was established in 1979.
Political Overview
Jordan is a constitutional monarchy. The current monarch, King Abdullah II Bin Al-Hussein, is Head of State and Commander-in-Chief of the Armed Forces. As Head of State, the King concludes and ratifies treaties and agreements, with the approval of the Cabinet and Parliament. The King exercises executive authority through the Prime Minister. The Prime Minister is appointed by the King and advises on the appointment of other Ministers of the Cabinet. The King appoints senior officials on the recommendation of Cabinet. The 1952 Constitution provides for a bicameral National Assembly, with a 110-member House of Representatives, also known as the House of Deputies, elected by direct universal suffrage, and a 55-member Senate appointed by the King. In the House of Deputies a number of seats are set aside for women, and various religions and ethnicities.
The most recent elections were held in November 2007. Representatives of tribes and families loyal to the ruling Hashemite dynasty again won the majority of seats contested in the House of Deputies. Mr Nader Dahabi was appointed Prime Minister in November 2007, the King mandating him to progress social and economic reforms, particularly energy security through alternative and renewable resources including nuclear energy. Economic growth and enhancing the competitiveness of the national economy were ‘prerequisites for security and social stability’. Technocrats, including senior civil servants and academics, are strongly represented in Cabinet.
The "Jordan First" initiative that King Abdullah has been promoting in various forms since 2002 has shifted the focus of Jordanian politics to domestic issues of the economy, and social and political development. Since King Abdullah’s "Amman Message" in 2004, Jordan has also actively pursued a broad policy of seeking to reclaim the reputation and practice of Islam from extremism. Always a strong critic of terrorism, the promotion of moderate Islam and interfaith understanding are recurring themes of the King’s speeches to domestic and regional audiences and the international community. Jordan has suffered terrorist incidents in recent years, including the 2005 bombing of three Amman hotels, in which 60 people were killed.
Jordan is committed to progress on the Middle East Peace
Process. The country has a large Palestinian population with
more than one and a half million Palestinian refugees. Jordan
is one of only two Arab States (the other is Egypt) that has a
peace treaty with Israel, concluded in 1994.
Economic Overview
The Jordanian economy is small and narrowly based. Jordan's main exports include clothing, pharmaceutical products, phosphate, potash and fertilisers. Historically, Jordan has benefited greatly from remittances from a large expatriate professional community. It is a major recipient of foreign aid, which has been vital over the years to Jordan's social welfare and development programs. Despite the unsettled regional environment, Jordan has made progress towards achieving macroeconomic stability. Fiscal consolidation, combined with prudent monetary, privatisation and exchange rate policies, and a rescheduling and restructuring of external debt led to an improved macroeconomic environment in recent years. Structural reforms are aimed at promoting private sector-led growth and foreign investment, while reducing the direct government role in the economy. According to the IMF, real GDP grew by an estimated 6 per cent in 2007.
Jordan is a regional leader in developing transparent government processes and innovative policies to attract investment. It is a member of the World Trade Organization (WTO) and World Intellectual Property Organization (WIPO) and has concluded free trade agreements with the United States, the European Union, Singapore and a number of Arab countries, including Bahrain, Egypt, Morocco, Syria, Tunisia and the United Arab Emirates. Jordan is committed to becoming a regional centre of excellence in education, IT and health services - all areas where there may be scope for collaboration with Australia.
Bilateral Relations
Australia and Jordan share a warm relationship with valuable historical dimensions dating back to the First World War (when Australian forces fought in the region, including modern-day Jordan, alongside Allied counterparts against the Ottomans) and including over 50 years of cultural cooperation in archeological research. The political and economic relationship has expanded through regular high-level contact, including visits in recent years by Australian Ministers for Foreign Affairs, Immigration, Defence and Agriculture and the Chief of the Defence Force. King Abdullah made a brief visit to Darwin in June 2001 en route to East Timor to meet with some of the 3,000-strong contingent of Jordanian forces serving in East Timor as part of the UN Peacekeeping Force. Australia does not provide a formal bilateral development assistance program to Jordan.
Commercial Relations
Bilateral commercial relationsare modest and strongly in Australia’s favour. Principal exports to Jordan are live sheep, dairy and meat products. Two-way trade amounted to AUD 76 million in 2007. Imports from Jordan, mainly fertilisers, amounted to AUD 3.5 million. The postgraduate education sector in Jordan is also a growing market for Australian universities. In 2005 Australia concluded an MOU with Jordan on the live animal trade in order to underpin the trade and ensure respect of international animal welfare standards.