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JORDAN GLOBAL ECONOMY 1
Heading: Jordan Global Economy
Your name:
Course name:
Professors’ name:
Date
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JORDAN GLOBAL ECONOMY 2
Introduction
Jordan’s economy rates among Middle East’s smallest economies, with inadequate supply of oil,
water, and natural resources. In fact, its economy has caused the government to largely rely on
the foreign support. As a result, the country is experiencing other challenges that include
inflation, unemployment, large budget deficit, and high poverty of rates. The most negatively
affected sectors in the country are mining, manufacturing, and re-exports’ transport. This paper
focuses on economic challenges facing Jordan global economy, such as, inflation,
unemployment, poverty, and large budget deficits.
Economic Issues
To start with, Al- Edwan & Hamaidi (2011, pp. 10-15) says that the country’s economy is
facing high rates of unemployment. This is caused by the economic reforms measures put in
place by King Abdallah in 1999. Although these reforms were meant to enhance the country’s
economic status, some of them had detrimental effects on companies. For instance, privatization
of the government companies led to the reduction in employment rates in the country as many
people were left jobless. Moreover, Andrawes (2011, pp. 12-14) notes that elimination of the fuel
subsidies distracted some of the private investors in the country who were instrumental in
creating jobs for the citizens. Moreover, the country has a skills gap between the private sector
and the young workers. Therefore, jobs created in the country go to foreign workers at the
expense of the citizens.
Additionally, the country is experiencing the highest inflation rate as compared to the
past years. According to Obeidat (2011, September 17), before 2008, the country’s economy was
bright in that it had an economic growth of 2-3%, which was higher than its population growth.
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JORDAN GLOBAL ECONOMY 3
Obeidat (2011, September 17) notes that the country recently recorded a higher inflation rate that
rose to almost 12%. As a result, the consumers particularly those in the lowest income levels, are
facing serious pressures. Some of these pressures include food, housing and oil prices. In
addition, the pressures were aggravated by lack of competition in the private sector, and other
structural issues. Besides, high prices have made housing unaffordable for the young people.
Nevertheless, banks have put in place measures that ease access of mortgages by the people.
With the high rates of unemployment and inflation, Jordanians have found it hard to cope
with the situation. At the moment, the country has high poverty levels that are reinforced by lack
of jobs and high prices of basic needs (Al- Edwan & Hamaidi 2011, pp. 10-15). Despite the
government’s efforts to enhance job creations, the opportunities are taken by the foreigners.
Besides, the country’s economic status is insufficient to create job opportunities to rising
population growth. Andrawes (2011, pp. 12-14) also argues that poverty levels have also been
aggravated by the large bank deficits in the country. This is caused by the foreign assistance on
which the country heavily relies.
Conclusion
Jordan global economy is weakening in that the country is facing a lot of challenges. This
economy is among the smallest economies in the Middle East. Explicitly, the country largely
depends on the foreign assistance. Consequently, some of the challenges faced by the country are
huge banks deficits, poverty, unemployment, and inflation. In turn, this has adversely influenced
the country’s Growth Domestic Production (GDP). Therefore, it is recommended that the policy
makers come up with measures that are instrumental in saving the worsening economy in the
country.
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JORDAN GLOBAL ECONOMY 4
References
Al- Edwan, Z.S. & Hamaidi, D.A.H. (2011). Evaluating Social and National Education
Textbooks Based on the Criteria of Knowledge-Based Economy from the Perspectives of
Elementary Teachers in Jordan. Education, 131(3), 10-15.
http://www.questia.com/PM.qst?a=o&d=5048376299
Andrawes, T. (2011). Suggested Educational Competencies for School Teachers in Light of the
Global Tendencies towards a Knowledge Economy. International Forum of Teaching
and Studies, 7 (6), 12-17. http://www.questia.com/PM.qst?a=o&d=5048844782
Obeidat, M. (2011, September 17). Jordan on alert as a new, different global downturn looms.
The Jordan Times, Retrieved from
http://http://www.jordantimes.com/index.php?news=41956

Unformatted Attachment Preview

JORDAN GLOBAL ECONOMY 1 Heading: Jordan Global Economy Your name: Course name: Professors’ name: Date JORDAN GLOBAL ECONOMY 2 Introduction Jordan’s economy rates among Middle East’s smallest economies, with inadequate supply of oil, water, and natural resources. In fact, its economy has caused the government to largely rely on the foreign support. As a result, the country is experiencing other challenges that include inflation, unemployment, large budget deficit, and high poverty of rates. The most negatively affected sectors in the country are mining, manufacturing, and re-exports’ transport. This paper focuses on economic challenges facing Jordan global economy, such as, inflation, unemployment, poverty, and large budget deficits. Economic Issues To start with, Al- Edwan & Hamaidi (2011, pp. 10-15) says that the country’s economy is facing high rates of unemployment. This is caused by the economic reforms measures put in place by King Abdallah in 1999. Although these reforms were meant to enhance the country’s economic status, some of them had detrimental effects on companies. For instance, privatization of the government companies led to the reduction in employment rates in the country as many people were left jobless. Moreover, Andrawes (2011, pp. 12-14) notes that elimination of the fuel subsidies distracted some of the private investors in the country who were instrumental in creating jobs for the citizens. Moreover, the country has a skills’ gap between the private sector and the young workers. Therefore, jobs created in the country go to foreign workers at the expense of the citizens. Additionally, the country is experiencing the highest inflation rate as compared to the past years. According to Obeidat (2011, September 17), before 2008, the country’s economy was bright in that it had an economic growth of 2-3%, which was higher than its population growth. JORDAN GLOBAL ECONOMY 3 Obeidat (2011, September 17) notes that the country recently recorded a higher inflation rate that rose to almost 12%. As a result, the consumers particularly those in the lowest income levels, are facing serious pressures. Some of these pressures include food, housing and oil prices. In addition, the pressures were aggravated by lack of competition in the private sector, and other structural issues. Besides, high prices have made housing unaffordable for the young people. Nevertheless, banks have put in place measures that ease access of mortgages by the people. With the high rates of unemployment and inflation, Jordanians have found it hard to cope with the situation. At the moment, the country has high poverty levels that are reinforced by lack of jobs and high prices of basic needs (Al- Edwan & Hamaidi 2011, pp. 10-15). Despite the government’s efforts to enhance job creations, the opportunities are taken by the foreigners. Besides, the country’s economic status is insufficient to create job opportunities to rising population growth. Andrawes (2011, pp. 12-14) also argues that poverty levels have also been aggravated by the large bank deficits in the country. This is caused by the foreign assistance on which the country heavily relies. Conclusion Jordan global economy is weakening in that the country is facing a lot of challenges. This economy is among the smallest economies in the Middle East. Explicitly, the country largely depends on the foreign assistance. Consequently, some of the challenges faced by the country are huge banks deficits, poverty, unemployment, and inflation. In turn, this has adversely influenced the country’s Growth Domestic Production (GDP). Therefore, it is recommended that the policy makers come up with measures that are instrumental in saving the worsening economy in the country. JORDAN GLOBAL ECONOMY 4 References Al- Edwan, Z.S. & Hamaidi, D.A.H. (2011). ‘Evaluating Social and National Education Textbooks Based on the Criteria of Knowledge-Based Economy from the Perspectives of Elementary Teachers in Jordan. Education, 131(3), 10-15. http://www.questia.com/PM.qst?a=o&d=5048376299 Andrawes, T. (2011). Suggested Educational Competencies for School Teachers in Light of the Global Tendencies towards a Knowledge Economy. International Forum of Teaching and Studies, 7 (6), 12-17. http://www.questia.com/PM.qst?a=o&d=5048844782 Obeidat, M. (2011, September 17). Jordan on alert as a new, different global downturn looms. The Jordan Times, Retrieved from http://http://www.jordantimes.com/index.php?news=41956 Name: Description: ...
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