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With the dawn of the crescent moon the holy month of Ramadan descends upon Jordan, but not without its economic side effects. Naseem Tarawnah looks at the economic impact Ramadan has on the average Jordanian and how gluttony can be the biggest sin of all.
It is seen as a time when religion comes to the forefront of priorities for the Kingdom's Muslim community. Abating one's appetite becomes the ultimate personification of reinforcing the soul in piety. However, cultural and social habits often trump religious obligations in Jordan, or, at the very least, have a tendency to become lost in the mix. In its religious context, Ramadan is not merely about abstaining from food and drink from sunrise till sunset. It is also about limiting one's self from overindulgences, in an attempt to feel at one with the larger, less fortunate, Islamic community.
Yet Jordan, like many Muslim nations, approaches Ramadan in the most ironic of ways. More food is consumed throughout this month than any other month of the year, with shopping carts lining checkout counters in supermarkets all across the country on a daily basis. Often times certain commodities that would normally sell in a week will disappear in a single day.
The gluttonous consumption is often a post-iftar topic in many households in Jordan. However, few people have considered the economic repercussions on the average citizen. Erratic consumer behavior during Ramadan has set the stage for price gouging, as increased demand is met with a rise in prices. In most cases, producers and vendors hardly wait for the mechanics of supply and demand to automatically set the price for them, simply raising prices on their own.
A study conducted by the National Society for Consumer Protection in 2006 showed a 32% rise in the prices of 37 commodities during the first week of Ramadan alone. The study indicated the staple goods for the average Jordanian, such as tomatoes, rose by 8%, while peppers rose by nearly 140%. Meanwhile, meat, what many Jordanians now perceive to be a luxury, experienced an increase of up to 22%.
As if excessive consumption was not enough, Ramadan has also ushered in a noticeable environment of inefficiency in both the private and public sector. Hours of operation in government offices, which ordinarily run between 8:30am and 3pm, shift to a 9:30am to 2pm schedule. Business hours in the private sector will vary but the ordinary 9 to 5 is reformed, with the work day starting one hour later than usual and employees punching out at 3pm (if not earlier). While hours are cut short, they are usually not compensated with a better quality of work, as tired and short-tempered employees will push the inefficiency levels to near breaking points. While no accurate figures measuring the levels of efficiency exist, local economists and sociologists alike have argued that Ramadan is, in fact, considered a month where little work gets done.
Meanwhile, with a touch of respect to both social sensibilities and the law, as well as a hint of what can only be deemed as plausible hypocrisy, most bars, nightclubs and discos will shut down for the month. Large white sheets replace signs of restaurants and stores selling alcoholic beverages. Whatever one's personal or religious position on these types of places, they are at the end of the day businesses that must shut down for an entire month of the year, thus representing significant financial loses. On the other side of the spectrum, one finds that many businesses thrive off the Ramadan effect. Restaurants, cafes, supermarkets, and clothing stores are all major economic beneficiaries of the month. Prominent shopping areas such as Jabal Hussein, Swefieh, the downtown core and shopping malls tend to be packed with customers throughout the month that is all a lead up to another economic player: Eid il-Fitir. Customs of purchasing new clothes and toys for children has rendered Eid il-Fitir, the celebratory day of feasting that concludes Ramadan, as yet another consumer-driven occasion.
According to one economist at a local university, consumption levels will tend to differ across the socioeconomic divides. When it comes to food, the lower class does in fact purchase more, though the increase remains within the boundaries of their current level of income. In contrast, what is considered the Jordanian middle class represents the majority of market consumption. On the other hand, the upper class of society tends to have more balanced consumption levels, but will often replace over-expenditure on food with more recreational activities throughout the month. Meanwhile, various studies conducted in recent years have pointed to food wastage throughout Ramadan to vary between a staggering 30% and 40%.
The Ramadan effect may be particularly harsher this year with inflation on the rise. Official figures placed inflation in 2006 at 6.25%, but such numbers are often thrown into question when faced with the realities on the ground. With food representing 40% of the average Jordanian's consumer basket, both vegetables and fruits have seen significant increases in the past year. It is enough to place a dent in most Jordanian households that earn an average of JD6,000 a year. This is especially true in a country where, according to official figures, nearly 15% of the population lives under the poverty line (unofficial figures place it as high as 30%).
In all, this has left standards of living dwindling, creating a dismal economic environment for the average Jordanian struggling to survive. It is all the more reason for the individual citizen to take a hold of their own expenditures during Ramadan, not only to save money but to also play a socially responsible role.
It is on the average citizen, specifically members of the middle class, to resort back to the primary principles of the holy month that require connecting with those who are less fortunate. It may be as simple as spending less at the checkout counter.
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