Travel Reference
In-Depth Information
THE IRAQI DILEMMA (1990-2008)
Arab Federation
For the past two decades Jordan has been preoc-
cupied with its neighbours to the East rather the
West - a shift in focus necessitated firstly by the
Gulf War and subsequently by the US-led inva-
sion of Iraq.
Given that the founding fathers of the modern
states of Iraq and Jordan were brothers, it is not
surprising that the two countries have enjoyed
periods of close collaboration over the years. In
1958 King Hussein tried to capitalise on this dynastic dimension by establishing the Arab
Federation, a short-lived alliance between Jordan and Iraq that was intended to counterbal-
ance the formation of the United Arab Republic between Egypt and Syria. Although the al-
liance did not last long, the connection between the neighbours remained strong, especially
in terms of trade.
UN assessments put the total cost to Jordan of the
Gulf War (mid-1990 to mid-1991) at more than
US$8 billion. The UN naval blockade of Aqaba
alone, aimed at enforcing UN sanctions against
Iraq, cost Jordan US$300 million a year in lost rev-
enue between 1991 and 1994.
The Gulf War
When Saddam Hussein invaded Kuwait in 1990, Jordan found itself in a no-win situation.
On the one hand, the Palestinian majority in Jordan backed Saddam's invasion, having
been given assurances by Saddam that the showdown would result in a solution to the
Palestinian question on the West Bank. On the other hand, King Hussein recognised that
siding with Iraq would antagonise Western allies and risk Jordan's US trade and aid. As a
solution, he sided publicly with Baghdad while complying, officially at least, with the UN
embargo on trade with Iraq. As a result, although US and Saudi aid were temporarily sus-
pended, loans and help were forthcoming from other quarters, particularly Japan and
Europe.
Despite these new streams of income, the Gulf War exacted a heavy financial penalty on
the small and relatively poor, oil-less state of Jordan. Ironically, however, Jordan's third
wave of refugees in 45 years brought some relief as 500,000 Jordanians and Palestinians
returned from the Gulf States. They brought with them a US$500 million windfall that
stimulated the economy throughout the 1990s and helped turn Amman, in particular, into a
cosmopolitan, modern city.
