By Jane Harrigan, Hamed El-Said (eds.)
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Extra resources for Aid and Power in the Arab World: World Bank and IMF Policy-Based Lending in the Middle East and North Africa
During this period, Jordan was neither favoured by the IMF or the World Bank. However, in the second half of the 1980s tension between Hussein and Arafat led to a rift on who should represent the Palestinians in any peace settlement with Israel. Hussein consequently reverted to an old and by now well documented approach of continuing secret cooperation with the Israeli state (Dallas 1999) and in 1988 severed all economic and administrative ties with the West Bank and Gaza Strip (WBG). With Jordan’s Palestinians dominating the private sector, severing ties with the WBG created uncertainty with regard to their political future and presence in Jordan.
Such treatment compares very favourably with their less America-friendly neighbours such as Algeria in the1980s and Libya in the 1980s and 1990s. 23 and 25–6). It would seem that in these MENA countries US officials hoped, by providing friendly regimes with financial and military support and by developing them into regional showpieces of globalisation, that this would stabilise the regimes of their Arab allies (Alexander 1996, Waterbury 1998). Morocco has been such a massive and continuous recipient of Bank and Fund programme loans that it is difficult to link key domestic and international political events to the timing of such loans.
Conteh-Morgan (1990) and Zimmerman (1993) have made a similar argument. 379) and each major decision must have the approval of the US Senate and Congress (Smith 1984). 23 Joyce (1992), Conway (1994), and Knight and Santaella (1997) concentrated on economic determinants. Some consensus has emerged with respect to key economic variables. Declines in export earnings, high debt service ratios, and the presence of arrears on debts, as well as histories of other financial problems are all associated with a higher likelihood of an IMF agreement being signed.