Exporting Peace?

Qulifying Industrial Zones



With the growing trend of globalization and privatization in the developing world in the mid-late 1990s, the Clinton administration sought ways for increased economic depenedancy to reduce the potential for conflicts, and to even bring about peace in conflict regions.

This led to a comprehensive economic strategy in one of the most protracted conflicts in the world, the Israeli-Arab conflict.

In 1996, the US Congress enacted a program of Qualified Industrial Zones (QIZ), where entitling goods jointly produced by Israel and either Jordan or Egypt to enter the United States duty free. It was hoped that the increased economic cooperation between Israeli and Arab nations would lead to further cooperation in issues such as governance, water resources, and security.

While these have not yet occurred, trade between Israel and Jordan have increased 6 -fold, and Jordanian exports to the US have increased from $5 mil in 1997 to $1.2 bn in 2005.

While this has been a boost to Jordan's economy, it has yet to be seen whether such economic cooperation will foster peace. The stigma surrounding colaberation with Israel in the Arab world still prevents many from cooperating in the QIZs.

A summary of QIZ and its history.

And for a view of the Qualified Industrial Zones through the eyes of the Arab media (Egypt's al-Ahram).

Also of note- the Qualified Industrial Zones in Jordan have been accused of creating sweatshop labor camps.