Jordan was very badly affected by UN Sanctions imposed on Iraq in 1990. These sanctions which are now almost eight years old negatively affected the Jordanian economy. They also had severe political as well as social implications. These are very briefly discussed below.
• Economic Implications
Iraq, prior to 1991, was Jordan's main trading partner. Through bilateral annual arrangements, trade between the two countries exceeded $400 million, both ways. This represented alsmost half of Jordan's exports in 1990. It was expected to increase at a rate of 5%-10% annually.
Unfortunately due to sanctions Iraq, could not finance its imports from Jordan. Debt of Iraq to Jordan accumulated and now exceed $1200 miilion. This is very sizeable amount by Jordan's economic standards. Due to this the Jordan - Iraq trade was severely restricted during the last two years to half its past values and is now around $250 million. This considerably contributed towards Jordan's present economical difficulties and recession as well as unemployment. It also contributed to the spread of poverty to levels unknown previously in the country.
Economic sanctions also manifested itself in many other features which were detrimentral to the Jordan economy. Most important of which is the blockade on the Gulf Aqaba which severly handicapped the Aqaba sea port. This blockade no only reduced the port activities to almost a half, it also delayed clearance of goods, affected handling and caused damage of imports to Jordan and greatly reduced the importance of aqaba as a regional port.
Sanctions are a barrier to legal trade. Therefore they encourage illegal trade - smuggling. Although both the Jordanian and Iraqi governments severely opposed smuggling across their common border, however, this could not possibly be toatally eliminated, thus adding to Jordan's already existing security problem.
Sanctions imposed sever hardship on Iraqis. This caused a sizeable number of them to leave the country. Jordan was the only travel route and quite a number of them decided to reside permanently or temporarily in Jordan.
Jordan with its limited resources had, therefore to cater for Iraqi immigrants to provide them with housing, schooling, medical as well as other services. Few of them are wll to do, but the mojority are not, and they became a burden on Jordan's economy. They had to compete with Jordanians for the limited opportunities in the job market thus contributing towards unempoyment. Their numbers also added to the already heavy harden on the country's limited resources. The presence of a small minority, some of them are needy and others are politically motivated, creates social as well as security problems to the host country. Till now Jordanian security has been able to contain the security implications of all this, but not without occassional serious incidents.
• Political and National Security Implications
Sanctions, particulary against iraq, are very unpopular in Jordan. many Jordanian parties and activists tried to organise popular actions to show support to Iraq, like demonstrations and publicity in the media and the press. The authorities, which tried to contain disturbances and demonstrations so that they do not get out of hand, found it not easy to deal with these anti-sanction sentiments, some of which were quite violent, thus adding to the prospect of political unrest in the country. Sanctions against Iraq has created a ltent political problem in Jordan, this has to be added to the already existing frustrations caused by the malise in the Middle East peace process. The political and security implications of all this cannot be ignored by any consciousness government.
The location of Jordan between Iraq and Israel, could had, in 1991, involved an unwilling Jordan in the military turmoil in a defensive poster. although such threats have greatly diminished in recent years however they were not totally eliminated.
• Actions to Relieve the Impact of Sanctions
Jordan's economy will not fully recover until sanctions against iraq are totally lifted. This will enable Jordan to fully utilise its export potential with its main trading partner. Until this happens Jordan's economy will continue to suffer. This suffering can be reduced through enhanced economic assistance to Jordan - bilateral as well as multilateral. UN agencies have to increase its economic assistance to Jordan in order to enable the country to contain poverty. As well the UN has to advise donar countries of the need for them to increase their assistance to Jordan. Other sanction features and impacts, like the blockade of Aqaba port, can be reduced or eliminated without inrefering with the operation of sanctions. Therefore it is essential to continuously stury and monitor the sanctions operation and its negative impacts on third countries and see how these impacts can be reduced.
