One of the questions that I've been asking myself since arriving here is ' where does all the money come from'? As I've said before, Jordan is pretty expensive for everything except the basics (a woman cannot live on coffee and felafel alone), and yet people don't seem to earn a lot. Then on the other hand, there do seem to be a LOT of really rich people here ... at least those have been my anecdotal impressions so far. To try and understand the situation a bit better, I've been trying a combination of some internet research and asking as many people as possible what they think, and have come up with the following;
'Jordan is not a rich country'
Jordan is classified in economic terms as a 'lower middle income country' or an 'emerging market', and according to World Bank statistics the GNP per capita was $3,306 in 2008 - so $275 or only £245 a month. Another 2009 study claims that "29% of Jordan’s employees earn less than $500 per month, while 30% earn between $500 and $1000 per month". As for its resources, Jordan doesn't seem to have much except potash, and is totally reliant on imports for oil and almost all other energy needs 996% to be precise), while water and therefore agriculture is a huge issue (as previously discussed).
'Jordan is not cheap'
This may not seem too bad, but when you compare salaries to the cost of living it's really not great. Have a look at this site if you don't believe me - even simple things like milk and bread are about the same price as the UK, and rents aren't great either;
Cost of Living information from Numbeo(skip past the first bit about indexes ... real information underneath!)
Every Jordanian I know complains about the massive gap between salaries and the rising cost of things, and after initially thinking that I must be getting ripped off because I'm a foreigner, I've come to realise that I'm not really paying more than locals, it's that locals can't generally afford the same things that I would buy ... and yet these expensive things are in the shops, in fact in many many shops and malls around the city. So who is buying this stuff?
'Jordan has some very rich people'
I don't have any groovy facts to support this, but a drive around Amman will show you this - the side of town where I live is a vast expanse of huge houses, numerous malls and all the trappings of wealth. I have seen porches racing down the road from me, and places like Starbucks and TGI Fridays (really!) are always busy - all pointing to a pretty significant middle and upper class with plenty of cash to wave around. And this is what niggles me - who are these people, and where does their money come from?
'Jordan doesn't really make anything'
I've trawled a few websites on the subject of Jordan's economy and what exactly they produce, and the answer generally seems to be 'not much'. To break it down in very basic terms, Jordan's GDP seems to come from the following sources;
Agriculture - 2.5%
Industry - 23% of which;
Mining (potash and phosphate) - 3%
Construction - 4%
Manufacturing - 16%
Services - 74.5% of which;
Telecoms - 13%
IT - 10%
Transport sector - 10%
Tourism - 10%
Other services (banking, insurance, etc) seem to account for the remaining portion of the services sector.
So from these figures it would seem that a number of people are getting rich on selling dirt (potash / land) while the rest of the wealth seems a bit ephemeral ... and certainly doesn't seem to be enough to account for the extravagant wealth on display.
So to contrast with 'facts', these are the various opinions I've had about where all this money is coming from.
1. Foreign aid
The US in particular provides Jordan with very very large amounts of aid - somewhere in the $1 billion mark I believe - as it really needs to keep Jordan stable and onside in what is otherwise a pretty volatile region. Don't know how long term this is as a source of income though ...
2. Corruption
Possibly linked to point 1, everyone seems to think that corruption is pretty widespread, although I must admit that I haven't come across it myself yet and it certainly doesn't seem to be as widespread as in places like Indonesia or Nigeria. I've also heard that many of the businesses and construction projects may be linked to money laundering (Iraq in particular has been mentioned ...)
3. The Gulf
There are around 700,000 Jordanians working in the Gulf, and more in Europe and the US, all sending money back to families and to invest - this out of a population of only around 6 million, of which over half are Iraqi and Palestinian refugees (although some of the Iraqi refugees are apparently pretty minted). So money earnt overseas would seem to account for at least a good chunk of the money around ...
4. Foreign investment
Jordan is apparently a popular investment area as well, although not entirely sure why (any of my clever economust type friends know?) - possibly something to do with the free trade agreements? But anyway, money flowing in and being diverted into Audi 6's sounds plausible to me ...
So, still not sure where the rich get their moolah from ... but it's certainly there, and needs spreading around a bit. Perhaps Jordan should finally introduce some income tax?! Rather than taxing food and clothes at 26% ...