The Economic Achievements and Failures of Jordan Before and After the Recognition of Israel

Abstract

The 1994 Jordan-Israel peace treaty's economic effects are examined in this study, along with the potential and constraints it presents for Jordan's growth. Expected trade and investment flows with Israel remained minimal, despite the agreement opening up significant foreign aid, expanding access to global markets, and facilitating collaboration in the fields of energy and water. The most obvious economic benefits were found in tourism and foreign aid, while important industries like agriculture continued to experience structural difficulties. The study draws attention to a fundamental paradox: while peace improved Jordan's geopolitical stability and international reputation, its immediate economic benefits were inequitable and frequently fell short of domestic expectations. The results highlight the necessity for policymakers to supplement peace accords with focused reforms that boost economic diversification, competitiveness, and guarantee that foreign collaborations result in widespread development.