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Gulf War Impact on Iraq & Jordan Economy

The countries Iraq and Jordan had a good relationship with one another before the Gulf War started. It was known that Jordan supplied Iraq with agricultural and industrial products, and that trucks from Jordan transported agricultural and industrial products over Middle East, including its main economic partner, Iraq. During the Iran-Iraq war, Jordan showed great support to Iraq, which created a deeper relationship for the two countries. In the said Iran-Iraq war, Jordan supplied Iraq with needs such as – transportation, trade, agriculture and industry.

In return, Iraq supplied Jordan with cheap oil, low-interest loans and other grants. But all changed, when Iraq sent 100,000 Iraqi troops on August 2, 1990 that invaded Kuwait and led to a blood bath. Everyone was astonished when they heard the news, they didn’t expect two countries with mutual benefits from one another to raise war. Both countries experienced a downfall, the unemployment rate was increased, poverty striked the lives of their citizens, and each gulf states supported their own country whether they’ll support Iraq or Jordan.

Literature Review The Gulf war itself brought a huge impact to Iraq and Jordan, as well to the other Gulf states, but it does not end there. The effects can still be felt after the war, the aftermath of the war caused big problems to the economy which made the lives of ordinary people hard. Several banks had to use the savings of each family, even if the families had money stored in the bank, they couldn’t buy what they wanted and when due to constriction brought by the war.

Even the middle and upper class families experienced the aftermath of the Gulf war, it even came to a point were several families were asked to live in one house; men were prohibited to go out; and women were the only ones allowed to do the grocery on a once-a-week basis. The meat and poultry product statistics dropped; the unemployment shot higher; the import-export market percentage decreased due to barriers in the market. In Jordan, it was somehow the same, it hurt them badly.

They lost a great share in the export and import market; they loss the cheap supply of oil from Iraq, Jordan had to pay the average cost supplied by Yemen and Syria. However, in the years to come and upto present time, both countires had improved and the war between the countries made them see their own strengths and weaknesses. Methodology I chose to review and analyze how the Gulf war has affected Iraq and Jordan; how there economy was before the Gulf war, and what were the effects of the Gulf war – did they brought good things or they did it bring endless trials and an increasing poverty rate.

On most articles that I’ve read, before the Gulf War, Iraq and Jordan had a good relationship with one another. And both countries’ industries flourished, Iraq supplied Jordan with their needs, and in return Jordan returned the favor of supplying Iraq with its needs too. Before the war, the gulf states were solid, but as the war was launched, these states chose sides on who they shall support. Jordan greatly suffered, 25%-30% of their population were living below the poverty rate.

Their inflation rate skyrocketed high, and unemployment rate of 30%-35% empowered them. With Iraq no longer supplying Jordan with cheap oil, Jordan was forced to buy high priced oil which cost them. On the other hand, Iraq felt the effects of the war in their import-export market; being highly dependent in Jordan for the import-export. In total, the gulf war brought great misery to both countries, ending their once flourishing relationship and economy.

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