Includes bibliographical references

On October 26, 1994 Jordan and Israel signed a Treaty of Peace, ending nearly fifty years of hostilities. Jordan, Israel's near neighbor with ties to the new Palestinian entity, especially the West Bank, will be among the economies most directly affected by the widening Middle East peace process. Already Israel and Jordan have moved forward on a wide range of economic issues, including framework agreements on telecommunications, transport, water resources management, banking services and the use of the Jordanian currency. This report examines the possible economic impact of peace in the Jordanian economy. It has two central messages. First, most of the actions needed to position the Jordanian economy to benefit from the economic potential of peace in both the short and long run are within the Government's own span of control; they do not depend on the actions of others - not even Israel and the PLO. But second, the international community can - and should - assist Jordan to carry out these actions, since the success of the political agreements on peace will ultimately depend on the success of the region's economies