RESTRICTED

Report No. EMA-37a

This report is for official use only by the Bank Group and specifically authorized organizationsor persons. It may not be published, quoted or cited without Bank Gtoup authorization. TheK anK Group does not accept responsioly for me accuracy or completeness or me report.

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

INTERNATIONAL DEVELOPMENT ASSOCIATION

MEMORANDUM ON THE CURRENT

ECONOMIC POSITION AND PROSPECTS

OF

JORDAN

May 21, 1971

Europe, Middle East andNorth Africa Department

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Currency Equivalents

1 Jordanian Dinar = 2.80 U.S. Dollars

1 U.S. Dollar. = 0.357 Jordanian Dinars

TAPLE OF CONTENTS

Page No.. Paragraphs

BASIC DATA

I. RECEN1T 'ECONCTeMIC ANDPOLITICAL SITUATION 1 1 - 7

II. PUBLIC FINANC7 ANDDF'VEOPMENT EXPESNDITUR1 8 - 12

TTT. BATA \T OFr PAYMVNTS 3W - 15. Må:1n i nfL t l ý.L i--

IV. ICNMIC nTTTDEVrAMTI AND.LV . *.AJ UL'J!'UV - L VJåiV 17,1VfI 11:ij1. AI'jvu

PROSPECTS 11 16- 22

STATISTICAL APPENDIX

This memorandum has been prepared by Mr. FareedA. Atabani who visited Jordan in February 1971. Itup-dates the report on "Current Lconomic "osition andT rosrects of Jordan" (mA-16a of December 18, 1969).

BASIC DATA

West Bank East Bank Total Jordan

Area 5,900 Km2 91,100 Km2 97,000 Km2

of whilch: cultivated 2,500 Km2 3,500 Km2 6,000 Km2

of which: irrigated 70 Km2 230 Km2 300 Km2

Population (estimate 1970) 850,000 1,400,000 2,250,000

of which: refugees 285,000 630,000 915,000Rate of Growth about 3 percent per year

Monev and Credit Dec. 1966 Dec. 1970 Rate of Increaseper annum

Total Money & Quasi Money Supply 75.8 129.2 14.5nf whic'h: Timp and Saving pnosit. 19.8 23.7 ).7Claims on the Private Sector 37.2 43.6 4.0

Central Governnent Operations(J million, 1966 1970

Do~mestic Reeu 31.0f 30.hForeign Assistance 12.4 33.1Ordinary Expenditure -39.0 -64.8Development Expenditure -10.7 -18.1

Balance of Payments (JD million)

Exports 10.4 12.4Imports -6A7.-62Invisibles (Net) 21. 4 3.7Current icouit Blalance -35.5 -4u.-

ID)A PID-ion4 ( $- milion Dec -96 De- i AnC. -197M-Lý^~~ \ U %j, r1- ý L-"1 1 L i

ELfL ei U V . U0

Disbursed 5.0 9.1

IMF Position

Quota 13.0 23.0Drawigs --

Foreign Exchange Reserves(JD million) 1966 1970

67.2 97.3(12 months imports) (19 months imports)

External Financial Assistance(JD million)

Grants 14.8 33.4Loans 2.7 1.6

Total 17.5~ 35.0

I. RECENT ECONOMIC AND POLITICAL SITUATION

1. Before the Ara-Tael war of JTune1067, the nonomy of jorann

achieved a high rate of growth. GNP grew by almost 10 percent per

Furthermore this remarkable progress was accompanied by a substantiallysIJdU.Le priceA. level ad, as a result~ o.S subsania f0reignLdJ a-. . L,-L, -' a

surplus in the balance of payments. And, although foreign assistancecontinued to ve a major factor, the Goverment successfully reducedthe reliance of the budget on external support as domestic receiptswere gradually developed and were finan-ing an increaSing Mnale UGovernment expenditures. The Government was therefore able to channela larger share of external aid to development projects. Horeover,

the growth of exports and invisible receipts, particularly from tourism,more than compensated for any decline in foreign assistance. Tneprospects, on the eve of the 1967 war, were for a continued improvementin the Government's saving efrorts and performance, leading to acomplete phasing out of foreign budget support by mid-seventies and

a further improvement in the balance of payments position. Exterialassistance would then be completely channelled to finance the develop-ment effort.

2. The consequence of the 1967 war was to interrupt these favorabletrends and to disrupt severely the growth of the most promising sectors- mainly agriculture, tourism, industry and mining. The loss of theWest Bank, the frequent clashes across the Jordan river and the con-tinued inflow of refugees from the West Bank, had far reaching effectson output and investment resulting in a marked slow down in economicactivity. The inflow of refugees put new burdens on the budgot, thelabour market and the urban infrastructure. Extremely difficultbudgetary and balance of payments positions, were averted only asa result of large infusions of Arab financial assistance made underthe Khartoum agreement of August 1967. The situation was furithercomplicated by the closure of the Suez Canal which provided accessto the Mediterranean for Jordan's only sea port at Aqaba. Furthermore,the Prowing strength and militancy of th3 Palestinian guerillasadversely affected the general investment climate. To counteractthese developments, the Government stepped in, in an attempt to alle-viate the difficulties caused by the war and its aftermath. Thismeant, on the one hand. extending financial aid to several comnanies.public utilities and refugees organizations and, on the other hand,revisinE policies in such a way as to concentrate develonment effortson the East Bank. This policy aided by a continuing boom in the con-struction sector and an excentionallv nnd hirvct. cnlminAtAr in

1969, in a high rate of growth in GNP that was very much in line withthe pre-1y U runUs

1/ Data for GNP and related indicies are not available for the postiyo years because statistics on production, investment, etc. inthe occupied West Bank are lacking. Estimates in this report forthese years are based on some other general indicators.

3. The loss of the West Bank has led to a disruption of economicrelations with the East Bank. Jordanian bank branches operating inthe occupied West Bank were closed and deposits of JD 14 million($39 million) were frozen. In an attempt to relieve the financialburden of depositors, the Jordanian Government allowed withdrawalsof up to JD 200 per month with a maximum of 25 percent of the balanceon the account. However, more liberal provisions were made for businessenterprises and more needy cases. But the Jordanian dinar continues tocirculate in the West Bank alongside the currency of the occupyingcountry. Furthermore the Jordanian Government continues to pay salariesin the ITst Bank. Trade, at a much reduced level, continues to takeplace between the East and the 1Jst Banks. The West Bank supplies theEast Bank with fruits and vegetables, while the East Bank supplies theWest Bank with certain locally manufactured and imported goods.

4. The Jordanian economy received another serious setback in thesecond half of 1970, and particularly after the events of September 1970,when growing tensions and increasingly severe clashes between theJordanian Army and the guerilla forces culminated in widespread hos-tilities and disturbances. Estimates of casualties range from theGovernment figure of 2500 to the Red Cross' estimate of 6000 to theguerillas claim of 30,000. The material losses resulting from thefighting in September were estimated by the Government to be in theneighborhood of JD 16 million ($h5 million), half of which was accountedfor by damage to buildings and private dwellings, about JD 4 millionin the commerce sector and JD 2 million in the industrial sector. TheJordanian Government takes the view that if the economy is to over-come the adverse effects of the Sentember hostilities. Drompt andadequate compensation is of crucial importance. As a result, theGovernment. during 1970. has naid JD 2.5 million out of ceneral fundsand plans to allocate at least JD 3.8 million for compensation in the1971 huict. Th- (levernmpnt. P.rn,t- th t thp hlann will h finnnrtrfrom funds outside the budget - namely JD 4 million in special Arab

nnfl.r M 9 Tnillinn fv-nr inin+. TT1+Prq pIT--n~-relief fund.

5. The immediate effect of the 1970 fighting was to bring the economyto d a virl SUC.L 1U Oi~U_.LLL MVt, ulle enIU of L71x j LiUuU1__LCLL UJU 4Lu

dropped by about 50 percent as industries, in particular, suffered11---;V±J_..L I-UIL U±LZjU1-1U;U0 Blut, oIter factors~ a.lso accent~uad the I

difficulties. Phosphate production, the country s most importantexport industry, dcined substantlly compared to 1969 mainly becauseof the difficulties associated with phosphate exports to India. Cement

production uecilnea LIo aoou nal of iits ±Yuy LeveL mainly due tU wnesubstantial fall in construction activity (other than some repair work)as well as a fall in cement exports. Campared to y69 agriculturalproduction in 1970 has been very unsatisfactory. For one thing, rainsduring the planting season were far below average and ill timed. uUt-put of cereals dropped sharply and domestic requirements were met bylarge imports. Although not to the same extent as cereals, output offruits, vegetables, olives and other field crops also declined. Civildisturbances hampered the distribution and marketing of agriculturalproducts. The general economic situation was further aggravated by

theJ suspens.in of. a large part o AIirab aid to JorUdn. BothI LibUya

and Kuwait suspended their aid to Jordan in the wake of the Septemberincidents. For 1yu, this meant the loss to Jordan of one quarterlyinstallment from Libya (JD 2.2 million) and two monthly payments fromKuwait (D 2." million). No payments from either source were madein the first four months of 1971, and no arrangements have so far beenmade for them to be resumed in the near future. Saudi Arabia, however,continues to make its payments on a regular basis. The combined effectof all these adverse developments brought about a severe recession andan estimated decline in GNP of about 20 percent in 1970. Unemployment - es-timated at about 30-35 percent - is videspread among both white collarworkers and unskilled labour.

6. Immediately after the end of the hostilities, Jordan receivedemergency aid for rehabilitation from both the United States and theUnited Kingdom. In addition to the United States/Jordanian relieffund already referred to, the United States has also provided militaryaid, $5 million in kind mainly in food supplies, school buildings,hospital and other medical aid and a further $5 million in budget support.The United Kingdom has provided rehabilitation aid of almost £1 millionin medical aid, restoration of electricity lines and teams of engineersand technicians to rehabilitate the telecommunication system.

7. Although the Government is aware of the gravity of the situationand is making a determined effort to revive economic activity, theprosnects of recovery must denend heavily on the extent and the speedwith which confidence and a conducive investment climate are re-es-tblished. These rennirements ar cloely linked to the problm ofinternal security. Since September, the Government and the Army havedamonst-atd that they cann revent the guerillas from maintaining their

hold over the cities and creating a state within the state. But sincethe guerillas are by no means a spent force, tension in the countryis likely to remain for some time.

11. PULLU FINANU AND UE7V%ELUOH17T Artivu11URE

8. Prior to 1967, the Governent's attempts at reducing relianceon foreign badget support had attained a certain measure of success.

But the Arab-Israeli war completely changed the picture because

domestic revenue declined since tax collections could not be madein the West Bank and financiil demands on the Government increasedafter the war. Both these factors aggravated the country's budgetaryproblem and sharply increased the country's reliance on foreign budgetsupport. Foreign aid in 1966, for example, financed one fourth ofthe total Government expenditures while in 1968 the proportion was wellabove 50 percent. A substantial part of this aid was in the form ofgrants from Arab countries. This financial assistance enabled theJordanian Government to undertake rather large expenditures on reliefand emergency assistance as well as to increase defense expenditures.Defense expenditures, however, increased substantially in 1969 leadingto a further deterioration in the budgetary situation during that yearand an overall deficit of some JD 12 million. Fiscal policy in 1970was aimed at reducing the overall budgetary deficit and hence relianceon the domestic banking system. The 1970 budget aimed at a deficitrequiring domestic bank financing of JD 6 million. To achieve thisresult, custom duties, excise and business taxes were increased andceilinas in the rate of erowth of public expenditures were agreed upon.These objectives, however, had to be abandoned as a result of the dis-turbances of the second half of the vear. Dobmestic revenues fell byan estimated 10 percent mainly as a result of the effect of civil strifeon the level of Anonomic activity- Arnh Pid under the Khnrtoum Aoree-ment declined from a projected JD 37.7 million to JD 33 million mainlyhncauns of the snsnenson of payments by Thia (TD 29 millinn) AndKuwait (JD 2.6 million). This, coupled with an increase in emergency

the overall budgetary deficit to an estimated JD 19.A million, inspiteof' the fat that+ deeomete_Innre iane ro h Trasuyrwere cut back, certain foreign obligations due toward the end of the

Me~? so. budget,.a p rpo als for 14-.11r -n~r 4- 4-1-a ,rn. 4-4--, 4-

expected to be more difficir.t than in the previous year particularly-in view of th uncerly-uE of fUreIgn budget support andu izetinrae

levels of expenditures. Because of this uncertainty the Jordanian Govern-Aux..a,- v.1 u<- _ , vo.. "e -1 , .- .yer 1 1 1 0 1 ) 0 1 1' [ 1 DU 1 C 1 00m;~ hs L d't~C~nr& ~- im0;in nu,, iin LIi, J-,'1 hu intot'1r22 chlPters. Ch;rpter I of the rpproved bud-et reLtes to .ssured reve-ruCc nI buouu -y utri non-postpornvle. expencltures. Totr rc:venues

rto r:poc L to r _c J6 .) million, of v-hich JD 37.0 million :;re projec-v. usnumei1 re1rau< s. -1icuoos r cjrtiona-,l revenuas of JD .'..

million resultin, frrn the planned introduction of ne" texes, increcse sIA ols v -Xisting t,:ces cn,. speciF11 levies on some utilit' retcs.

It also includes about JD 3 million resulting from the new agreementwith the Trans-Arabian Pinline Co. (Tanline), for the transit Ao filthrough Jordan from Saudi Arabia to the Mediterranean. External re-ceipts are estimatA d+ .TD 27.3 million made up of WT 14.8 millionfrom Saudi Arabia and JD 12.5 million from other sources, primarily+he Uni+ed Q+aes Tal no_n"pstpnale exenitre ar e w0 estmaedat JD 72.6 million. Chapter I of the budget, therefore, has an over-al SLU df i Uof U 8. III onL.L e UJapersH a I!U ol L t1e apprUVedbudget detail the expenditures that will be undertaken in case KuwaitandIL i.01bJya esm ~0ItheA.ir aidU payments bttalling .JDJ.J 9 million. Ex-

penditures under these chapters are expected to total JD 22.9 million.

10. The Jordanian authorities apparently intend to rely on the domes-tic banking system to finance the overall budget deficit of JD 8.2 mil-lion. But this deficit may be larger than envisaged if estimates ofdomestic revenue and some postponable expenditures prove to be toooptimistic. It should be noted that, on the revenue side, only a fewof the new tax measures have so far been taken. These are expected toyield no more than JD 1.5 million. On the other hand, it is doubtfulthat certain expenditures particularly on defense, emergency and loanrepayment can be postponed to the extent envisaged in the budget. Inview of these factors, the Central Government's reliance on the domes-tic banking system will be more than was expected when the budget wasformulated.

- 6 -

Table I: Central Government Budget

(million Jordanian Dinars)

RevisedEsti-

1966 1967 1968 1969 mates Budget1970 1971

Re venue

Domestic 31.0 25.7 26.4 33.2 30.4 37.0 1/Foreign Aid 12.0 37.9 39.8 37.6 33.1 27.h 4/

Total Revenue 43.0 63.6 66.2 70.8 63.5 64h

Expenditures

Recurrent Expenditures 39.0 44.7 57.2 65.2 64.8 58.7

Armed Forces 2/ (19.4) (24.2) (35.2) (4l.5) (37.7) (32.3)Th 1 1,.4 "I P+ V _I A 7 1 n. 7 -1 7 1 . 17 2. 1 -1 01).C

Sfl V.L}JW. f}O LA >f 4...41. _ L-.V4) 7

Of which

Total Expenditures 49.7 61.4 74.7 82.7 82.9 72.6 5/

Surplus or deficit (-) -6.7 2.3 -8.5 -11.9 -19.4 -8.2

1/ Includes JD 4.5 million resulting from new tax measures and JD 3 million inadditional revenue under the new Tapline agreement.

2/ Budget allocations, actuals not available.

3/ Includes recurrent expenditure relating to development projects and debtservicing. Excludes development expenditures of the Jordan DevelopmentBoard and the Jordan River Corporation financed from external sources.

4/ Not including aid payment from Kuwait (JD 14.0 million) and Libya (JD 8.9million).

5/ Excluding expenditures in Chapters II and III of the Budget which are con-tingent on receiving aid payments from Kuwait and Libya.

Source: Ministry of Finance and Central Bank of Jordan.

-7-

Table TT. hnr+o-z TT nnA TTT nf t.hp 1Q71 Thnen+.

Kuwait aid 14.0 Treasury contributionIUo UvelopmenU

Libyan aid 8.9 projects 2.7

Emergency 8.3

Repayment of loans 3.0

Defense 4.0

Support for West Bank 4.9

Total 22.9 22.9

Source: Ministry of Finance, 1971 Buaget Law.

- 8 -

11. DeveloDment exrenditures are undertaken by the Jordan Develop-ment Board (JDB) and the Jordan River Corporation, the two bodiesthrough whom the Goverrment channels all develooment loans and tech-nical assistance. The two development authorities also receive somernvernimAnt rontributinn_ bt thin is nf minor sionificanc compared

to external project loans. The JDB and the Jordan River Corporationh.v% nYmn11v nvPra+innt.ae thi- hilitu +. ohtain and annanity tnutilize development funds. For example, budgeted development ex-penditure fo 1040 wase of the oder f .TD 11 "illJ^n %Ahile ntnnl

expenditure on development projects was JD 7.8 million for the sameyear. For 197U the disparity between budget andu actua expen&-tureswas even larger - JD 13.7 million and JD 6.3 million respectively.LJU.1u6u ULIJ 0 y = t u VpL;JUFuv VAo ouLU VuVO w01 tU1LLu.%Uou LU nV..a

related to the Shu'aib and Kafrain dams near the Dead Sea, the._J . .D L . LJ 3 - --- L_ ____. -. 7 -L . - L ..- 4.

expanioun of te "ru.Lu electricity [nOUWorK U1 o1J n1JW d."JpUu dU

Aqaba. Construction of the proposed link between the Hijaz railwayand the Port of Aqala was deferred pending a reassessmeno of thefeasibility ol' the project.

12. The Central Government's share in development financing hasbeen small and is mainly confined to a number of minor projects anditems of capital expenditures for which foreign financing is notavailable. The Goverrment also finances the local currency costs ofprojects undertaken by the two development authorities with externalproject loans. In addition, the Central Governmert, through itsown development budget, finances certain types of recurrent expendi-tures arising out of capital development-projects as well as loans,subsidies, grants to Government and semi-Government organizations,equity participation and emergency - mainly compensation -

expenditures.

-9-

Table III: Development Expenditures of the Jordan DevelopmentBoard and the jordan Rivr Corporatlon

A C T U A L S Budget Estimates Budget-96 n 197T -96 C)t5 9-69n 1nr i7 17n -19Q71L.7UU .L7U. i -L7UU. J-7U7 -L7 I vJ -7 kJ -L" -L.

Expenditure:

Jordan DevelopmentBoard 5.8 5.5 L.5 5.4 10.9 3.9.

Jordan RiverCorporation 1.0 1.3 0.5 2.5 2.8 2.4 1.6

6.8 6.8 5.0 7.9 13.7 6.3 11.1

Financing:

External Grants 2.5 2.h 0.4 o.8 3.4 0.2 1.0

External ProjectLoans 2.7 4.3 5.h 4.8 8.1 2.1 9.7

Jordan GovernmentContribution 1.6 0.1 - 2.2 2.1 4.o 0.4

6.8 6.8 5.8 7.8 13.6 6.3 11.1

-ource: jordan Develow.ent Board and lnr1 anofodn-

- 10 -

III. BALANCE OF PAYMENTS

13. Jordan's balance of payments is characterized by a consistenttrade deficit. The country's exports are largely confined to phosphates,fruits and vegetables and it needs to import a wide range of consumergoods and capital equipment. Before 1967, the increasing deficit on thetrade account and the general phasing out of foreign budgetary support weremore than offset by growing receipts from invisibles - mainly the expandingtourist trade and remittances from Jordanians working abroad. With theoccupation of the West Bank in 1967, the trade deficit showed a marked de-cline. But this was more than matched by a drop in receipts from tourismand remittances from Jordanians working abroad, leading to an increase inthe deficit on goods and services. This deficit was, however, more thancompensated for by the increase in foreign aid - mainly from Arab countries.As a result the balance of payments of Jordan achieved a surplus in 1967and 1968. The picture changed in 1969 as the economy picked up momentumleading to a sharp increase in imports. This coupled with a stepping upof military purchases and the servicing of some military loans, led to asharp increase in the deficit on goods and services. At the same time,foreign aid fell by about JD 7 million. The net effect of all this was abalance of payments deficit of JD 11 million. Preliminary data for 1970show a small balance of payments deficit. The reduction in the size ofthe deficit is due to the fact that although exports declined, mainly be-cause of the difficulties in marketing phosphates, imports declined bymore than exports. Servicing of some military loans, due towards the endof the year, were deferred. But there was a further drop in foreign aidto Jordan.

14. The balance of pavments deficit for 1971 is expected to be of thesame magnitude as 1969. Exports are expected to increase by JD 2 millionmainly as a result of the new agreement with India on the marketing ofphosphates. But imports are expected to increase somewhat over 1970 asthe situation returns to normal and at least part of the depleted stocksare gradually replenished. Met receipts from services are expected to besomewhat higher than their 1970 level mainly as a result of the new agree-ment with Tapline. For the balance of payments as a whole, the Governmentestimates that the definit for 19)73 will he of the order of TD 10.0 million.But this deficit can conceivably rise sharply in 1972 if the Government usesthe domestic bankino, system for finanpina all the Nirvet deficit or A qi7e-

able proportion thereof.

15. Due to the extent and -mportance of foreign aid, Jordan has accu-

of the commercial banks. At the end of 1970 foreign reserves amounted toTn) 07 -- ; 1 n 14- t9 71 -4 114 1 -; -- h-- 1 ne 1 0 --- 4+h, -P 4----+- -P -- 4- -dS- / I " - \, #

4- .4 I A..J.C J %-,. UwJu. .47 111I1 10 %I J .. ..L L1&tdWjL V %/4. CLL

services. The Government takes the position that large foreign exchange

emergency. As long as the present conditions, with their built-in uncer-foiLg Ure srvet ss LS taI14CUe, isL:V-Ll, thE UndeVrseta1ndb lJJUeL.Y L':dIU1K1k;foreign reserves is understandable.

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TV. ECONOMIC DEVELOPMENT ANTD PROSPECTS

16. Jordan's rather meager natural resource base, which is confinedto agriculture and piupauue munig, has made te economic U eveLopmen fU

the country a difficult undertaking. But the situation arising out ofthe jun 1967 war has brought about some new compiLcations. Ie poliical

situation that has emerged in the post-war period has made it impossiblefor the country to carry out major irrigation and agricultural schemes,particularly in the Jordan Valley which is by far the country's most pro-mising area. Since 1967 work on the Yarmouk dam scheme, designed to storeand channel water through the existing East Ghor C.nal (to be extendedsouthwards) had to be suspended. Furthermore, constant shelling acrossthe Jordan river resulted in widespread disruptions in the areas alreadyirrigated from the Canal, and agricultural production came to a standstillas farmers deserted the valley. Substitute measures to develop agriculturalproduction were initiated. Most important among these are land reclamationprojects on the fringes of the desert to be partly irrigated by undergroundwater and partly from two small dams - Shu'aib and Kafrain - that have justbeen completed. Furthermore some dry farming experiments are being under-taken to determine the possibility of growing olives and grLpes under theseconditions. In addition new varieties of wheat are being tested.

17. Industrial production also experienced a set-back after 1967,mainly because of the uncertainties inherent in the post-war situation,difficulties of marketing East Bank production in the West Bank and theclosing of the Suez Canal. But under the Government's policy of activelyencouraging and protecting the private sector - such policy measures asprotective tariffs, exemption of certain inputs from duties, grants andcredits under preferential terms, subscriptions to the share capital ofcompanies as well as the general stepping up of Government expenditure -

industrial production posted modest gains in 1968 and 1969. This wasfurthered by strong foreign demand for phosphates in these two years.

18. These favorable trends, however, received a serious setbaci dueto the rnPnmber 1970 inciinnts and the resulting widpnrand disrin-tinnin the economy. All development work on agriculture came to a virtialstandstill inrl aprimiltural outnut .rlpninwd hv ahont. 2r nprnpnt. in ',970 paitly as a result of ine.dequate and ill-timed rainfall. But the c,nse-quences of the r1.turbanees were nPretcularly acute in the incus+rIa'sector, where the value Gf production is estimated to have declined y al-moq+- r,n nmir-wnt. Thic: armT: n--)+-1vT ilA +.%na rnl+nf e 3nline n e%- %,-

duction and export of phoophates due to a dispute with India.

19. Phosphate production is Jordan's major export industry and thea1 g n rn~4 cn,n -'-',n c,a-i,, m l. 4- so,, - -nn&+ a-,., "UU -. f,.r 4-+W 4

exploiting the full potential of this natural resource. The phosphattcompany - a Joint pubJ1ic_pr4va1- sector ventu-~sbe aiglse

in the past two years. Management problems and high costs of product.onhave ben the main fsActurs contributing o Us reult. Tnese proo.Le1s

will have to be tackled if Jordanian phosphate is to be competitiveenoug'h to captu 0 0 D, u ar vi LIIU UA-O ~U.L1 tUu I ul-11ULU LUL Fi u-

phates, particularly in the Far East - Iran, Japan, China, etc.

20. The September incidents and the situation that has been precipi-tated as a result, have diverted the attention of the Jordanian authorities

to dealing with the most immediate problems facing the economy, and littlethought or action is being given to the medium or long-run prospects ofthe economy. There is no doubt that Jordan faces extremely critical short-run problems and to deal with these the Government seems to take the view

that it is essential to launch whatever projects are ready to restore con-

fidence, to provide employment and to generate economic activity. Whileunder the present Jordanian conditions, there is some merit to this view,it embodies the danger of diverting scarce resources to projects of ques-tionable economic value, thus leading to future distortions in the economy.This danger becomes very real when there are very few projects that arereally well-prepared and conceived, or whose implementation is warrantedunder present conditions.

21. A more appropriate development strategy for Jordan in its presentcircumstances calls for the choice of development projects which can beof help in relieving the immediate economic situation while at the sametime be of benefit to the long-term ain of the development of the country.Such a strategy has a few implications. Firstly, it implies that sinceit is clear that Jordan needs considerable external assistance on verysoft terms, foreign aid should be channelled to the preparation and exe-cution of projects that fit the above strateav rather than toward schemesof low priority (e.g. civil aviation). The country is at pre-sent receiving some foreign aid that meets this criterion, such as theUnited Kingdom soft loan of b 3.6 million to develop Amman electricity.The nroients that are nronosed for TTIA financing also meet these condi-tions. The proposed UNDP Five-Year Program for Jordan could also be anonstrnaitv influnnn in this dirpe+n+-A nn S nnndly the nrnnnd

strategy implies that the Jordanian authorities have to give very seriousthought to the an+ryv. develpament priorities - a nrneas that hna yet

to be initiated. This is crucial if Jordan is to make the most out ofIts extremely limi+eoan n. and finnnne4w.e nnAw-r4 Eqnally imnainn+

Jordan should also ensure that its present investments are yielding theh 4 kn+ ngee4 hi0 _+ t0 nS wiato nw, A+ nonan+ +h4 4o nn+ +1- nno 4- =

number of undertakings e.g. the phosphate industry.

22. But in the final analysis, the prospects and future development ofvorudaan ud"Ll b ILJMNIU D.Y~ UJAJa kduP1ICL O.L.JUU.Lon i te area ~. Ille

short term prospects for Jordan will be affected by such factors as theability of the country to raise foreign financial assistance on very softterms or even grant basis within and outside the Arab World and whetheror not the guerillas will stage another challenge to the authority of theGovernment and a possible repeat of the September incidents. The long runprospects will depend on whether peace can be brought back to the area as

- 13 -

a whole and on whether Jordan will get back all or part of the WestBank. All 4theSe ar 4m~tnm -t v4a1e +hat+ will have fnar rc~hing

lJa*Aw ^måk- V-v~~ - -- -

effects on the future of Jordan; but the situation is such that Jordancan exercise ony a limited influence on the outcome of these unknowns.

STATISTICAL APPENTI)TX

3.1 Balance of Payments 1966 - 1970

3.2 Direction of Foreign Trade 1966 - 1970

3.3 Summary of Foreign Trade 1966 - 1970

3.4 Production and Export of Phosphates 1961 - 1970

3.5 International Reserves 1964 - 1970

+vrnal nob. ~n-r np(.Pmh.r 1, 1970

qo-"Seri ce Pay-me nts on 'r.-rt.RrYiq1 Puic f nhfb.

5.1 Central Government Budget 1966 - 1970

5.2 Government Domestic Revenue 1966 - 1970

5.3 Government Development Expenditures 1966 - 1970

61 Facor affecting- c ge -n Money Supply' -196 7 '1C l'7 n

0.2 Money and Quasi Money 1966 - 197u

7.1 Agricultural Production 1965 - 1970

9.1 Amman Cost of Living Index 1968 - 1970

Tabl3 3.1: Balance of Payments

(In millions of Jordan dinars)

Provis- Fore-1966 1967 1968 1969 ional cast

1970 1971

A. Goods and services - 35.5 - 27.8 - 4. l - 63.6 - 48.1 -b7

Exports (f.o.b.) 1o.4 11.3 14.3 14.8 12.h 1667mrts (c.f.) - 67. -·52 - 57. - 67.6 - 6).2 -68

Trade balance -56.9 -29 3.0 - 52.8 -51.8 - h

eve1.6 15. - i. - i n . .7 17

L). unreui rL nfL,.Lers 4 1L ).7 )L.5 47.3 4J- . 54V

^ .1 -wi.i i:

Aid from Arab countries ( 9.5) (37.6) (46.3) (41.1) (33.2) (10.8)

C. Nonmonetary capit.l

(net). 1.6 1.1 5.3 - 0.6 - 4

D. SD'l allocation -- -- -- -- i

E. Net errors and orissions 5.1 5.1 1.3 0.1 5.7 --

F. Monetary movements(increase-) - 8.6 - 32.8 - 15.5 10.9 2.0 10

Sources: Central Bank of Jordan and International Monetary Fund.

Talerh1 3 . jord~-- Diecio of., Foreinra

(In thousands of Jordan dinars)

1966 1967 1968 1969 January June1969 1970

Exports 8,759 9,84 12,172 11,916 76,0 2

AraU SLLtOs 5,7 6)429 8 8,5.V 4,030 4,971

EEC 6441 761 52 1 - -United Kingdom 3 3 4 1 1 1United States 37 13 3 6 1 1Yugoslavia 810 530 864 1ol6 h26 483India 1,337 1,29 1,889 1,482 658 211Japan 31 102 35 16 -Commnist Bloc 371 345 325 394 281 127Other 113 443 759 471 361 532

Imports. 68,211 55,048 57,492 67,752 31,234 35,866

Arab States 13,062 10,515 11,031 14,382 6,570 7,276EEC 13,713 12,10o 11,808 12,143 6,144 6,743United Kingdom 8,140 6,712 7,154 9,677 4,191 4,755united otates ,952 u,7 63230J. 2,1Uo L,UYugoslavia 362 592 587 478 197 512Tndia 1 L,1 1 109 .17 1 017Japan 2,860 2,034 2,894 5,149 2,455 2,218Commutnit Bon 7,629 588 63260 8,955 4,087 4, 26LOther 8,947 9,329 10,274 9,546 5,035 5,040

/l Excluding re-exports.

Source: Department of Statistics, Ministry of National Economr.

Table 3.3: Summary of Foreign Trade

(In millions of Jordan dinars)

19(6 1967 196R 199 197C

Imports (c.i.f.) 68.1 55.1 57.5 67.7 61.3

Exports 10.4 11.3 114.3 14.8 12.5

of which:

re-exports (1.6) (1.4) (2.1) (2.8) (2.h)

Trade deficit 57.7 43.8 4,3.2 52.9 51.8

L sTiLmates.

Source: Central Bank of Jordan.

Table _3i: Jordan - Production and Exort of_ nospales

(In thousands of metric tons)

Production Exports Change in stocksWet Dry (Dry) (Dry)

1961 45 378 394 - 16

1962 681 579 372 207

1963 615 $23 368 155

1964 604 513 627 - 114

1965 8642 716 605 i1

1966 1,001 851 755 96

1967 1,314 918 882 36

1968 1,590 1,162 1,095 67

1969 1,320 1,087 928 159-

1970L 849 626 223

/1 Stocks of wet and dry phosphates held at the end of 1969 were equiva-Lent to about 760,uuv tons of Ury phosphates.

/2 Data cover 11 months only.

Source: Department of Statistics and Jordan Phosphates Company.

Table 3.5: Internaticn:l :e serve i

(In millions of Jordan dinv-rs')

End of period 1964 1965 1966 1967 1968 1969 1970

C'entural 'Bank27.3- 97 )9 . 590 7 9 P7 Q . 9

Gold -- 12 12 12 3, 0 .9

SDRs -- -- -- -- 1,oIMF gold tranche

position 0.9 1,0 1.1 1.1 1.4 1.h 2.1Foreign exchange 26.h h7.7 57.6 .9 u"9.6 u-.7 7.3

Commercial banks assets 24.7 10.1 7.3 5.3 6.3 t . 6.1

Total 52.0 60.0 67.2 92.5 17.9 96. -,7.3

Sou-rce: Central Bank of Jordan.

Table h.1: EXTE:'L PUBLIC DEBT CUT¯T iiD AS 07 D BF1 19

Debt Repayabl in Foigiýn Currcncy

(In thousands of U.S. dol.liars)

Debt utadn

Source I -Disuur'sed Inc3.xuo:koOnlyuniure

TOTAL EXTD'NAL PUBLIC DELT /2 107.862 160.161

IDA 9,075

Loans from governmcnts 98,787 lhOf3hé130nark 2 .wGem~any (Fd. Rep. of) 10,799 30,966Kuwait lh,960 16,960Kuwaiti Fund for Arab Economic

Develop-i, nt 9,915 15,795Saudi Arabia J,000 14,oc0United Kingdom 38,8h 46,721Unitecl St atczs 9,84 16,10-

/l7Debt with an original or extend'cd matu:r-itr of ovr ona year,Includs arrcears of pritnipal and excludes ariuars of interest up toDeccm,ber 31. 1970 as shown bolow:

(In thousands of U.S. dollars)Princ:ipal inter ;st

Lnarns from gove'rnents J,973 ~,023Gemany (Fed. Rep. of) 93] - ~iKuwait 1,h0o 560

Note: Duc to inconisi'tencies in debt reporting, assunptior.,s were madc, in

during 169 and 1970.

Statistical Services DivisionEconomiics Department

March 23, 1971

Table 4.2: TDMT:D 1 URE VT) CE Y PUYIJC0 T

Debt Rtcpayable in Foreign Currency

(In thousands of U.S. dollars) Page i

01E T OJTST(CE flFT P RI r 7 n PAYiMENV?3 TS i UiTINGP orr3ii

INCLUDING AM0R T1-YEAR U N ISU RSEöi Zu P JJATIN iNTJ 1 'EEST A u i kt

TOTAL EXTERIAL PUriLIC DEGT

1971 135p769 6>964 1>735 8>6981972 128p325 7#271 1>100 9>0711973 121x554 6r363 1,644 8.0081974 115p191 6>791 1712 8#5031975 108,400 6,911 1>732 8>6431976 101>489 6,895 1>640 8>5361977 94#593 8>285 1591 9,8761978 86308 6>583 1p561 8>1441979 79>725 6>583 1>427 8>0101980 73>141 5>722 1>293 7>0141981 67.420 6f276 1,215 7p4911982 61,144 6>027 1 138 7.165.1983 55>118 4>067 798 4>8641984 51>051 4p128 728 0r1561985 46>923 4079 662 å>7411986 42.>3'44 3,972 598 4>570

1988 34,965 3,831 1472 4>303nit 0 nd a fl &..z 4 11 i1h h.f; L

1990 27p483 3,651 359 4>0109336 335 3956

Note: Includes service on all dobt listedi in Table 1 prepared March 23, 1971with the exception of the following, for which repayment terns are notavailable:

.oans from yovrrnmnnts 1),373Germany (Fed. Rep. ofj 973Kuw It 1 i,n00United Kingdom 12,000

F3f ESThTD FUTUR- SERVICE PAI:!!TS O, EXTERiAL PUBLIC DE,;BTouUAlDJING Ii:CLUDäING U:ID1 U2SE) AS 0F DECEDE3R 31, 1970

Debt Reptyable in Foreign Currncy

(I-n thouSand3 of U.S. Collr:) PegC 2

(6EGIN OF PERIOD) PAYMENTS DURING PERIODi NCLUDiNG ÅhûRT-

yEAR UNDISBURSED ZATION INTEREST TOTAL

LOANS FROM INTERNATIONAL ORGATIZATIONS

IDA

1971 10p015 8 70 771972 10>006 15 75 901973 9p993 15 75 901974 9>978 70 75 1451975 9,907 70 74 1441976 9>837 70 74 1441977 9>767 85 73 1581978 9>682 100 72 1731979 9p582 100 72 1721980. 9,482 100 71 1711981 9,381 115 70 1851982 9>266 130 69 1991983 9>136 130 68 1981984 9p006 240 67 3081985 8,766 240 65 3061986 8>525 240 63 3041987 9285 270 62 3321988 8.001,4 300 60 3601989 7,714 300 57 3581990 7p413 300 55 3551991 7113 300 53 353

LOANS FROM GOVERMENTS

1971 125p774 6,956 1,665 8o6211972 116p818 7>256 1>725 8>9811973 111o562 6>348 1s570 7>9181974 1.05>213 6>721 1,637 8p3581975 98@492 6>841 1.658 8>4991976 91>651 6>825 1>567 8P3921977 84>826 8P200 1>518 9,7181978 76p626 6>483 1p4818. 7>.9721979 70>143 6>483 1p355 7s8381980 63,660 5>621 1#222 6>8431981 58>038 6>160 1,145 7>3051982 51,878 5>896 1>069 69661933 45>981 3>936 729 4>66619å4 42>045 3>88 661 45491985 38>158 3o838 597 4>4361986 34>319 3>732 535 42661987 30,588 3>637 472 4,10911988 2 5Uf71 3530 413 3p9431989 23,420 3>350 356 3>7071990 20p070 39350 304 3>6551991 16,720 3,350 252 3>603

Table h.2; ESTIAT FU'UE SERVICE PAiETS 0F 3T,) AL H.1 :7: D TOU ïsTAUDING i cL~UDIü U1!D1:1U1ED A; Or DE~CEL 31, 159/0)

Dcbt Rcpayable in Foroign Currency

(I uhusandsof U.S. donars) Page 3

DEBT OUJST(KjEGIt Or PERIOO) PAYMENTS DURING PERIOD

INCLUDING A,iL0TI1yEAR UNDISBURSED ZAT ION INTEREST TOTAL

IDOANS FROM GOVE;R1MENTS

DEN M ARK

1971 1p600 107 107

1972 1p493 107 - 107

1973 1p387 107 107

1974 1,280 107 107

1975 1>173 107 107

1976 1>067 107 " 107

1977 960 107 107

1978 853 107 107

1979 747 107 107

1980 640 107 107

1981 533 107 107

1982 427 107 . 107

1983 320 107 - 107

1984 213 107 107

19 107 107 107

r_ r n k A ä. v

9 129, n993 363 3342 69 51972 299630 363 472 835

6 613 9761974 20p904 629 753 1>382

i975 28p275 629 747 1>4771976 27,645 629 828 1.4561977 27,016 ip8ß F01 2>6191978 25,198 1,818 746 2p5641979 23>380 i>81A 692 2>5101980 21>562 1,818 637 2>4551981 19A744 1,818 583 21>40(1932 17>927 1p575 528 -291031983 16p352 1.575 481 2>0561904 14>776 1>575 433 2>00'1985 13,201 1p575 386 1,9611906 11p626 1>575 339 1,9141987 10'051 1>575 292 1>8671988 8>476 1.466 245 1>7141989 7,008 1,455 201 1>6561990 5>553 1>455 158 1#6121991 4,098 1>455 114 1>569

Tfable h.2?: 32TJIViNT' FUUR MRvVJGEy PAYf1'ji; 01 E>i:T 3 iL I PU )1 A!200 TNDE II0 i : U303:J' ED'k AS) O.J DE&i 3I~ , 970

Taele 0,-)lei reg urecLI4ý~1j)tc~JJ i 11,9L I UJ -jIu I

(Ijn houand of U.S. Poalac) Page h

PI UT t] I TT(i; 61 F PE[IIe ) P1AY: ENTS t;R If,G FE I D

INCLUD NGI AL UUi, T 1YEAR UNDI SIUSED ZATIrN INTEREST TOTAL

L nAs vFoM GnvERN,,,mEN,,TS

17 - 29 -5 72 9 5 u819

1972 24.,628 4>327 993 5.93201973 20p300 2>067 686 27731974 18,213 2#087 626 2p7131975 16P126 2>087 565 21976 14>039 2p024 505 2p5291977 12s015 2>024 447 2>4711978 9>991 2>304 389 2>6931979 7P687 2>304 331 2P6351980 5>383 19442 273 1>7151981 3>941 1t981 272 2>2531982 1>960 1.960 272 2>232

SAUDI ARA.BIA974 1>40 0 - 1>400

1972 12,600 2,100 * 2>100t 973 12n.t 2f100 - 2>100

1974 8p400 2p100 - 2>100

1975 6300 2100 2,100

1976 4>200 2>100 * 2>100

1977 2>100 2100 2 100

71- ncludo's:Amount Outstanding as of

December 31, 1970_Kuwait $13,60,000Kuwaiti Fund forArab EconomicD*evelopiient 15,795,000

$2~,33500¯0

Table -,.2: jI STj. YU U6ld SE•kVICI; *P:j;rS O 7 i ;L PU3UJC 'DI1

]Xcht 1Rep2yable in Foreign~ Curreny

(i hovxands c • U.S. dollar3) PgDECT OUT5T

CU Gi C F PErI(jD) P Y T fU IN FE,! UD

YEAR UDISURSED ZATI9N IiTEREST TOT/4IDANS FROM4 GO7RNki'TS

UNITED KIGD01,

1971 34 721 1972 341721 -2l1973 34 721 1>332 1l 1>3321974 33-39 1>439 1>4391975 31,950 1>559 1>559a97 30 39 -5 , 14551977 28,32 1#559 2>559107A 27 23 5 2 c'55 9l

1979 25.714 1>559 1>5596 C o%7-. 1 -559

1981 22-596 1,559 - 1,5591982 21>03 1>559 -pD5591983 19'479 1>559 ml 1>5591964 17p920 1p559 - 1#5591965 16p361 10559 w 1p5591966 14pC02 1.559 m i>5591987 13#243 1-559 " 1.5591988 .11.664 1,559 105591989 0>125 1>559 - 1s5591990 8>567 1t559 "l 1>5591991 7>008 1p559 1#559

1971 16,105 359 241 6001972 15,746 359 260 6191973 15,387 359 271 6301974 15,028 359 258 6171975 14>669 359 246 6059'7A5 iu.-ln -- r605

1977 13,903 593 270 663

1979 12>,615 696 332 1>028199 3-1 u,0071981 11,223 696 290 986

92102766270 9651963 9,83 l 696 249 94 41984 9>135 647 228 87519b5 6.489 59a 211 8091986 7P891 59d 196 7931987 7,293 503 180 6831988 6>790 503 167 6701969 6>267 337 155 4921990 5p950 337 Ia7 4831991 5p613 337 138 475

Statistial- Serviccs DivisionEconomics Departnent

March 23, 1971

Table 5.1: Central Government Budget

(In millions of Jordan dinars)

1966 1967 1968 1969 1970 1971.7alendar year Revised 7uget

Budget Estimates Proposals/b

1. Revenue (a4b) 43.41 63.65 66-17 7_ .2 Q__72 1 6L.hoa. Domestic receipts 31.02 37

Domestic revenue -- 26.27 32.52 34.5o 29.90Loans repaid to central

government -- 0.22 0.10 o.65 0.91 o.4ob. External receipts 12.39 37.93 39.80

Budget support grants 77.73-T-5 - -- 69 -T3. 37.55 .37.3 '33.0027Extraordinary grants -- :21.04 0.25 -- . - -

2. Expenditure 48.13 61. D 75. 8& '.1 J 20 72.60Recurring expenditure 39.02>7.19 T.23 64.07 63.90 8.T70of 'which ArmedForcesZ (19.L1) (24.17) (35.17) (37.55) (37.73) (38.30) (32.30)Development expenditure3 9.11 .16.75 18.36 15.26 14. 07 15.30 13.90of which Emergency expenditure -- ( 9.1) ( 9.32) ( 8.66) ( 6.30) 5.80) ( 9'00)

3. Surplus (+) or deficit (-1 4.72 + 2.25 - 9.33 .77 - 6.00 -- 8.20

Financingfrom banking system

a. Sale of Treasury bills (net) -- -- -- 8.17 3.71. 3.74 --b. Changes in deposits (-. increase) 4.72 - 2.25 9.38 1.33 1.80 11.70 --

Other domestic -- -- -- -- - --

Sale of Treasury bills (net) -- -- -- 0.23 0.46 0.46 -

/1 From 1967 includes payments from Arab countries under Khartomx Agreement.72 Figures for Armed Forces expenditure are allocations, not actuals.73 Includes Jordan Government contribution to Jordan Development Board and Jordan River Corporation which are prim arily.

financed by external project aid.1 Preliminary budget proposals.

ource: Central Bank of Jordan; Ministry of Finance.

Table 5.2: Goverment Domestic Revenues

(In million of Jordan dinars)

1966 1967 1968 1969 1970 1971

Calendar year Revised Budget

Actua 1 s Budget Estimates Propcsals

Custom duties 10.7 8.0 8.7 10.6 12.2 9.9 11.8

Excise taxes L.6 b.-h h.s 6.1 6.9 5.2 6.0

Income taxes 2.1 1.9 1.7 1.9 2.5 2.A 2.6

Other taxes 2.2 1.1 1.5 0.6 0.6 0.3 0.6

Licenses 1.5 1.0 1.) 2.2 2.3 2.1 2.7

Fees 2.3 1.8 1.5 1.6 1.8 1.5 1.8

Post, telegraph and telephone 1.6 1.3 1.0 1.1 1.3 1.0 1.1

Interest and profits 2.7 2.1 2.9 h.6 3.0 L.8 L.3

Miscellaneous 3.3 3.9 3.:3 3.8 3.9 2.7 6.1

Total 31.0 2.5 26.3 32.5 3b.5 29.9 37.0

Source: Ministry of Finance; Central Bank of Jordan

Table 5.3 Central Government Development Expenditures

(In nillions of Jordan d1rz3)

RevisedA.ctul udgt -Ltiat Budget0%

1968 1969 1970 1970 1971

Extraordir ry- ¿.}_ _",.

Eærgency exponditure L., . 4.0 5.8 2.9Inveitments and loane4l 6.0 2.0 0.5 0.7 1.4Grants ard subsidieci/ 1.6 1.5 0.7 0.9 0.9Miscellaneou3 expenditures/ 0.4 1.0 1.1 1.3 3.8

C t 1-e r 8.2 8.8 2.9 2

Direct expenditureý/ 8.2 6.6 7.I 5.4 4.5Centribution to Jord9n

Dýevelopient Board and JordanRiver Corporation 2.2 2.1 ".0 O.L

Total 17.5 17.5 16.2 18.1 13.9

Sources: Ministry of Finance, Central Bank of Jordan and JordanDevelopmeiit Board.

j/ Fxclud-ing development expenditures in Chapters II and III of the Budgeti.,Jch cre ccrtinrent on receivin; aid payments fro:n Kuwait and Libya.

2/ Expenditures arising from 1967 war and its consequences. Although notinvestment expenditures. it is included in the developnEnt budget an it isinot a permanent recurrent co,-rdtment.

/ rimril for comiensation to parsons who have nuffered dagge toproperty or financial icss as a result of tho 1967 war and the subseuentconflicts. The 1971 nrovision is deslgned to nav componsation aris:nr from

the September 1970 disturbances.l Tn nsos:iqt organiains n Affe#td bhd h +n rovderelief

works.C/ Fr r-c1lnf paynenta +,n -persnna dI"plaed lin Ihe197 I-mr &nd Atr

.6f To finance nonrecurront expenditure in ninistries, to underteke projectsfor which external a cnnot be e nd to e debt servicir.d c

Table 6.1: Factors Affecting Changes in Money Supply

(In millions of Jordan dinars)

eriod 967 1968 1969 1970

Changes in:

Mo.ney and quasi-money . hU.7 1O-) 103

Money 19.2 12. 8.2 9.2

Quasi-Mi on2y -1.0 2.0 1.8 1..

.orei,n asset(t)55. - 1.i - .5

Domesticssets (nt)U - 7- L.8 20.1 1.8

Cla1i onI priLvate sector* - U.3 1L.4 5.2 .

Claims on public entities 0.3 0.8 - 0.7 - 0.1

Net cIims~ on CO-7eneQn; - - ±1.0 - 0.8 18.6 12.2

Other items (net) 4.4 - 2.1 - 2.9 - 0.4

Changes in per cent:

Currency 70 23 13 16

Money 34 17 9 10

Money and quasi-money 24 16 9 9

Claims on priv2.e secto~r - 1 b 13 --

fiIncluding changes in counterpart funds related to the U.S. P.L 480program. A plus sign denotes a deficit and minus signi a surplus ingovernment transactionis.

Sources: Central Bank of Jordan and International MIonetary Fund,International Financial Statistics.

Table 6.2: Money and Quasi-Money

(In millions of Jordan dinars)

End of Period 1966 1967 1966 1909 1970

Currency 30.3 51.5 63.5 71.3 82.4

Demand deposits 25.7 23.7 24.4 24.9 23.0

Time and savinps denosits 19.8 18.8 20.8 22.6 23.7

Tntq1 7L.8 91.0 108-7 118.8 12Q2

Sources: Central Bank of Jordan.

Table 7.1: Agricultural Production

(In thousands of metric tons)

1965 1966 19657 o96 1969 -L97t

Wheat 277.9 101.2 239.7 116.2 159.3 54.1

Barley 94.8 22.8 77.7 24.1 42.5 5.1

Tobacco 1.1 1.6 2.1 2.1 2.0 1.6

Other Field Crops 64.9 25.4 56.1 19.8 31.3 20.0

Tomatoes 18Ö.9 179.0 259.7 152.9 150.1 107.0

Other Vegetables 23L. 232.2 282.2 85.6 69.1 55.0

Olives 37.h 32.7 64.o 36.3 23.9 28.0

COrAns 79.2 61.9 716 19.3 1L.2 19.0

Oitrus], fris^. 89 61. 3 7. 2i.3 1-.

Watermeons 160.0 h?.7 ll< 2$32.

Other fruits 60. 5h.3 6J.8 2. 1 27.7 30.n

/1 Prelirninary.

Sources: 1"nistry of .riculture for the years 1965 and 1966. Department oft) atis t-cS Lor tihe years 17UJ, 17U 1967 ad L7 V Dat fLo L

years 1969 and 1970 are for the East Bank only.

Table 9.1: The Amman Cost of Living Index

(1967 = 100)

Average for All Items Foodperiod

1968 ist quarter 100.9 102.02nd quarter 100.3 100.03rd quarter 98.1 93.0hth quarter 98.5 96.2

1969 ist quarter 105.1 114.02nd cuarter 107.9 121.53rd cuartr ". 6.hth quarter 110.3 1136

i197 i s e r tr 115.2 129.62nd quarter 114.1 126.03rd quarter 113 1238hth quarter 116.7 132.9

_____ *T)on nmnt n~ f t5c1i'