Reality Check

The cost of living is raising in Jordan. I have not had time to properly research the causes. My colleagues say the origins stem from recently unsubsidized oil. Once again, I'm not sure why the Government has suddenly hefted this burden onto citizens. Both of these issues will be research for another day. However, I was given a quick reality check while talking with two of my colleagues about the growing concern over the matter.

One of my colleagues earns 250 JD a month. This is the equivalent of what I earn in a month for teaching five one-hour aerobics classes a week. For another comparison, his salary is a little more than half my rent. Granted, my colleague's salary is lower because he only has a high-school education, although he has many more years of experience. He also works longer hours than I do. All of my colleagues work six days a week while I only work five. My colleague spends 50 JD a month on transportation alone. He lives in Zarka with his family, which is about an hour away. I'm assuming he works in Amman because job opportunities in Zarka are lacking.

My other colleague, a graduate student the same age as myself, also lives with his family. They live in East Amman (considered the seedier side of the city, however as always, this merely translates into the more impoverished side) in a rented apartment. He has 11 family members, several are his younger siblings still in college. All of my colleague's paycheck goes to support his family. He has another job on the side where he earns approximately 100 JD a month. Basically he subsists on this extra cash. In some ways, it's good that Islam discourages drinking because there is no way he could afford it. A beer costs around 4 JD. This is an expensive city, even by American standards.

However, in Jordan, people are encouraged to spend lavishly in order to display their wealth. My colleagues told me most of the nice cars on the streets have been bought with loans the drivers cannot repay. Extravagant weddings can also lead to extreme financial difficulty.

In 2010, in the tourism sector at least, the markets will be opened to outside investors. This is due to the regulations of the WTO. Around the world, from Mexico to Russia, we've seen the disastrous effects of free markets. I can only imagine how hard this will be for the struggling tour operators in Jordan, let alone, other small entrepreneurs who may face the same challenges in different markets.

With so much seeming wealth in Jordan, its easy to forget that this is a developing country that investors seem to be sinking their money into. Many Jordanian's are beginning to wonder how they will survive the price inflation and the lucky ones are leaving to Saudi Arabia, UAE and Western countries. Even with remittances, it's a scary reality.


*Pictures of Amman souk taken from Internet