Speech before the Los Angeles World Affairs Council on April 10, 2000:

Ambassador Marwan Muasher
Ambassador  to the United States
Hashemite Kingdom of Jordan

"Jordan's Political and Economic Challenges For the New Millennium"

President Mack, ladies and gentlemen:

It gives me great pleasure to be among you today, and to accept with great honor your Diplomat of the Year Award. Jordan is very proud of the relationship it enjoys with the Los Angeles World Affairs Council. Many Jordanian officials, including His Late Majesty King Hussein, have spoken at the Council, and I am thrilled to be able to do so myself. You are honoring a country which has a very strong relationship with the United States, and with which it shares many common values.

In his recent book on globalization, The Lexus and the Olive Tree, Tom Friedman argues that a country's real worth has shifted from one that depended on natural resources to one that depends more on human resources. In today's global village, a nation's ability to survive and thrive is no longer dependent on its size or an abundance of raw materials, but on its readiness to interact with the world and be part of the global system.

The late King Hussein realized early on that Jordan had to go global to compete in this world, given its small market size and its lack of natural resources. To do this, it had to undertake a major overhaul of all its policies in a consistent and comprehensive manner. Thus, three reform processes have been launched in parallel. The first is a political reform process that enhances public participation in decision-making at all levels and one that consolidates democratic practices. The second is a peace process that aims at developing an external environment which is more conducive to domestic development, replacing belligerence with co-existence and apathy with cooperation. The third is an economic reform program which aims at liberalizing the economy, making it more competitive at the regional and international levels and integrating it with the world economy.

While many have argued that a country as small as Jordan should not attempt three reform processes simultaneously, Jordan could not afford to miss the chance for peace, or for political and economic development. It did so fully aware of the risks of moving fast on all three programs, but equally aware that one has to break away from the fortress mentality, cast away ideological stances, and take risks if the region is to ever become prosperous. Jordan was not only looking for decisions that would be accepted by the majority of its public but was also equally concerned that such decisions be responsible ones for its future generations.

Let me outline the parameters of Jordan's model for peace, which continues to define Jordan's approach to the peace process and our position on issues that are yet to be addressed and resolved. Despite the fact that we have signed a treaty of peace with Israel, differences in view on several issues do exist between the two of us. It is our hope that such issues can be resolved through the diplomatic channels which have now been created between us.

1. Jordan is committed to a full peace with Israel, one that would result in a Middle East characterized by stability and peaceful coexistence which strengthens the forces required to sustain such peace and to develop it over time by creating a vested interest that would help build and sustain the resulting peace.

2. Jordan is committed to continuously addressing the Israeli public with a clear message of peace, regardless of agreement or differences with the sitting government in Israel. By the same token, this commitment to peace makes it incumbent upon us to speak frankly and candidly when we do have differences with any particular Israeli government.

3. Jordan is committed to strengthening its now institutional relation with mainstream American Jewish organizations and the American Jewish community. Indeed, that dialogue started since the beginning of the peace process. While we might differ on some issues, we do share a common objective of peace. We are very pleased with that dialogue and with the progress we have made towards a long-lasting relation. It has helped both of us understand where the other is coming from.

4. The Jordan-Israel treaty of peace offers a potentially ideal example to emulate, if that model succeeds. But it should always be understood that it is not a substitute to reaching an agreement with the Palestinians. Therefore, Jordan's position is that by supporting progress on other tracks, and in particular on the Palestinian-Israeli track, Jordan is supporting its own model and vision for peace, and indeed enhancing the chances of success for its own model.

The message we have continuously tried to send is that if the Jordanian model of peace--which successfully addresses the basic needs of Israelis--fails despite all our efforts, it would be difficult to imagine any other model being put forward, supported and succeeding. Just as we have attempted, successfully, to address the basic needs of Israel and its people, we believe Israel has to do the same for Jordanians and all Arabs so that peace can be supported and maintained at the grass-roots level.

5. It should be clear that Jordan will not be an alternative negotiations partner to the Palestinians, and Jordan's land will not serve as an alternative homeland for the Palestinians simply because Jordan is not a transitory state and because the Palestinians want to establish a state on their own soil. We will support the Palestinians in any way we can during final status negotiations, but will not participate in negotiations on behalf of, or in addition to, Palestinians. Naturally, we have interests that will be affected by any outcome of the negotiations on final status. As such, we will strive to closely monitor these negotiations, and to consult with the Palestinians, Israel, and the U.S. to ensure that these interests are preserved.

In this regard, we support the right of Palestinians to establish an independent state on their national soil. Indeed, the entire world community has come to realize the inevitability of-perhaps even the necessity for-an independent Palestinian state. We believe this should be the logical outcome of negotiations between the two sides that will put an end to the Arab-Israeli conflict once and for all.

For the record, I want to make it very clear that we believe that the establishment of a viable and independent Palestinian state is not only in the Palestinian best interest, but is also in Jordan's national interest. An independent and viable Palestinian state will help both Jordanian and Palestinian societies and political identities grow in a healthy manner and would set a solid ground for future cooperation between them.

The question of confederation, or any form of political link with Jordan that precedes a final settlement to the conflict, will not serve Jordanian or Palestinian interests. Instead, it would attempt to resolve key final status issues at the expense of one party or another. A resolution of the Palestinian-Israeli conflict first would set the stage for a very strong and healthy relationship between Jordan and the Palestinians-one that both peoples can freely choose.

6. Jordan is committed to a comprehensive peace. While the Jordan-Israel treaty of peace is here to stay, and Jordan's commitment to that treaty is ironclad, the ultimate objective of reaping the true benefits of peace, economically and culturally, can only be fully realized by a comprehensive peace that brings economic stability to the region and political solutions that are acceptable to all the parties. These should include meeting the basic needs of the Palestinians, including their right to self-determination and statehood on their own soil. While Jordan's treaty of peace with Israel constitutes an important core of this comprehensive peace, all of the components of such a peace have to be in place if the region is to enjoy stability and prosperity, i.e., a Syrian-Israeli peace, a Lebanese-Israeli peace and a Palestinian-Israeli peace.

7. Jordan is committed to the terms of reference upon which this whole process has been based and the terms of reference which all the parties have agreed to. Foremost among them is UN Security Resolution 242, which has somehow been conveniently dropped or ignored. We need to remind ourselves that 242 calls for Israel to withdraw from territories occupied in 1967. No interpretation of this resolution, even the unique one by Israel, would come close to Israel retaining 60 percent of the West Bank.

8. Jerusalem: Our position is that the land of Jerusalem occupied in 1967 is Arab land subject to the terms of reference of the Madrid process, based on the land-for-peace formula. With regard to the Holy Places, the rights of all three religions should be respected equally, above the sovereign considerations of any state. We believe a creative solution to the issue of Jerusalem can be reached, one that will keep the city undivided and open to all faiths, but also one that will have it serve as the capital of two states and a symbol of peace and unity rather than one of division and conflict.

9. Refugees: Jordan is the largest host country for Palestinian refugees in the world (40 percent), all of whom hold Jordanian citizenship. This is a final status issue where Jordan will be directly involved, defending the rights of a large segment of its citizens. We have started the process of coordination with the Palestinians and Egypt ahead of negotiations with Israel to resolve this very important issue. For this reason, the article dealing with refugees in the Jordanian-Israeli Peace Treaty stipulates that both signatories work to resolve the issue of refugees in accordance with international law, and relevant international resolutions in an agreed upon bilateral framework, in conjunction with, and at the same time as, the special negotiations on the permanent status of the Palestinian territories occupied in 1967.

Jordan has passed through a very challenging and trying period in the last year. The untimely death of His Majesty King Hussein shocked the country, and deprived the region of a world statesman who devoted his entire life for a better future for Jordanians and for all the peoples of our area. His true legacy, in addition to that of peace, was in leaving behind a country he built from scratch, one which is considered today among the most open and enlightened societies in the Middle East. He believed in a holistic approach to development, encompassing political and economic reform in addition to pursuing a proactive peace policy. Because of King Hussein, Jordan today, a country of less than five million people with few natural resources, boasts an open system of political pluralism, an independent parliament, a vibrant press which is considered one of the freest in the Arab world, a human rights record unmatched in the area, a well-managed economy, a professional army, and a highly educated population. All these were the result of this political reform process, which is still ongoing, and which is on an upward curve despite tremendous pressures.

An ambitious economic reform program was also launched in 1989 to transform the economic structure of the country from one that depended to a large extent on outside factors and aid to one that generated internal and self-sustaining activity'. The country's economic and legal environment has been transformed to create a more open market oriented economy that is friendly to foreign investment.

The country is still dealing with the loss of the late King, yet a number of positive indications are already evident. Jordanians today feel proud that the institutions left behind by King Hussein proved to be functioning, and functioning smoothly. Whereas many people equated Jordan with King Hussein, the country's institutions proved to be more resilient than were given credit for. The transition of power took place quickly and smoothly, and the world is already witnessing continuity in Jordan's policies and vision for the future of the entire region. Certainly, King Abdullah has much to add to King Hussein's institution-building process. He is doing so by injecting new blood and momentum into solidifying the process of democratization and in developing a proper system of checks and balances. King Hussein undertook a bold initiative to put the country on a path towards political pluralism and broader sharing in the decision-making process. King Abdullah is taking concrete steps to ensure that the democratization process is not simply a set of laws establishing the framework for political activity, but a process by which the culture of democracy becomes embedded in society through daily practice.

With a peace treaty between Jordan and Israel already signed in 1994, King Abdullah has been able to devote more time to the economy, accelerating the pace of economic reform to an unprecedented level, and placing the economy at the top of his priorities. Despite obvious social pressures, important milestones in implementing the program have been crossed. Already almost all economic laws have been updated to provide an investment-friendly environment. Government deficit and foreign debt as a ratio of GDP have been substantially reduced.

The government has moved to a new phase in its economic program, one that is necessary to integrate the Jordanian economy with that of the world. A process of privatization has been launched-selling government shares in public shareholding companies and privatizing public enterprises, particularly in the sectors of telecommunications and energy. New laws related to intellectual property- rights, which are necessary for encouraging private investment, have been enacted. Jordan has also just been accepted as a member in the World Trade Organization in December of 1999.

Jordan is also presently pursuing a proactive policy to develop its Information Technology (IT) industry. The country boasts a large skilled and inexpensive labor force in this field, and, with modern technology, is pursuing joint ventures and outsourcing with international companies. Jordan ranks 14th in the world in the total number of foreign students studying in the United States, with about half of them in IT or engineering disciplines. For a country of less than five million, this means a large pool of human resources that can be effectively tapped. The government is actively working with the private sector to help it develop the sector and copy the examples of other countries which have been successful in such an endeavor, particularly Ireland and India. This includes a major overhaul of the educational system, gearing it towards one that encourages creativity and independent thinking. We have just concluded a very successful IT conference m Jordan, presided over by His Majesty the King, and attended by well over 100 U.S. companies, including many from this region. We hope to do more business with you in the future.

We do not believe in open-ended foreign assistance. We have taken every possible step to reform our economy and transform it into one that is self-dependent. We have well positioned ourselves to be economically competitive in a peaceful Middle East.

There are some on both sides of the Arab-Israeli divide who have argued that Jordan's peace with Israel must necessarily come at the expense of its relations with the Arab World. I disagree. Jordan is, and will remain, a proud Arab country, part of the Arab nation, first and foremost. Jordan always sought to have good relations with all Arab countries, even while Jordan might have held different views on certain issues with some. The times are such that we can ill afford to have a region not at peace with itself. That would have disastrous results for all. At the turn of the twenty-first century, we need to turn a new page in some of our own relations with countries of the region. Our relation with the Arab world and that with Israel is not a zero sum game. Instead, we will strive to build good relations with all, based on mutual respect and the desire to build a prosperous and peaceful region.

Last year, Jordan played a crucial role in resuming negotiations on the Syrian-Israeli track. We also continue to have regular consultations with the Palestinians on final status issues. There is an underlying feeling among all parties today that a rare second window of opportunity has suddenly opened, and that unless every possible effort is made to make use of this window, it might close forever.

There is no doubt in my mind that a majority exists on both sides that supports a meaningful and peaceful settlement of the Arab-Israeli conflict. But there are also vocal minorities against this settlement, on both sides as well. If these voices are left unchallenged, they threaten the future
of the whole process. This is the time when pro-peace forces should stand up and be counted, when the divide should not be across Arab-Israeli lines, but rather between those who want peace and those who oppose it. The stakes are simply too high this time. We need to join forces, Arabs, Israelis and Americans, Muslims, Christians and Jews, who are for peace against those who are opposed to it.

On the Syrian as well as on the Lebanese tracks the parameters of a deal are in place: full Israeli withdrawal in exchange for full and normal peace. Both sides are in the process of preparing their publics for the logical and only solution possible to that part of the conflict.

On the Palestinian front, it is important to arrive as soon as possible at a full agreement, not just a Framework Agreement on Permanent Status (FAPS). FAPS should not be a substitute to such an agreement, which has to be meaningful if it is to last.

Jordan's bilateral relations with the United States are today at their best. Over the past several years, the relationship with the United States has developed both in scope and in depth to the extent that, today, it constitutes a true partnership. We see eye to eye on many common issues, including freedoms and respect for human rights, and we continue to work very closely with the U.S. administration on the peace process and other issues of mutual concern, including regional stability.

We also value the friendship that Jordan enjoys with Congress and are appreciative of the bipartisan support that the Kingdom has seen from Congress over the past several years. We are particularly appreciative of the efforts by the Administration and Congress in recent years to write off Jordan's debt to the U.S. and to increase assistance to the Kingdom, and of the present efforts to negotiate a Free Trade Agreement between Jordan and the U.S. We understand and appreciate the importance of Congress in the decision-making process in the U.S., and we maintain close touch with many of its members.

Ladies and gentlemen, Jordan today faces many challenges, but it is also well prepared. We are doing our part on all fronts, political, economic and cultural. With some help from the international community, and, more importantly, with peace covering the whole region, we will do it on our own. With our political reform process, our economic restructuring, and with peace, Jordan will not only survive, but thrive as well.

Thank you.