ABSTRACT
Jordan's economy has traditionally relied on three factors for support: remittances from its workers abroad, grants in aid, and exports to regional markets. This arrangement was more than sufficient to maintain growth in the 1970s and early 1980s. During the 1970s, Jordan experienced an impressive performance for a country situated on the edge of the Arabian desert without oil and with limited natural resources. These inflows of foreign exchange meant that despite a chronic deficit in its balance of trade, Jordan enjoyed an overall balance-of-payments surplus. The government of Jordan requested assistance for responding to the needs of returning Jordanians as a result of the Gulf crisis and made intensive efforts to obtain external aid. The European Community released $165 million, and Germany was to provide an aid package worth $100 million. The exogenous factors were responsible both for the growth and for the decline in the country's economy.
