PESTLE Analysis: Jordan’s Challenges

and Threats
Political Factors

Jordan faces significant political challenges, many of which stem from external forces. One
of the most pressing political issues is terrorism. Even before the establishment of Jordan,
the kingdom has been at the forefront of combating terrorism, which threatens not only the
region but also the international community. Jordan has taken a leading role in advocating
for swift and comprehensive counterterrorism responses to preserve international peace
and security. Through participation in international forums, diplomatic missions, and
symposiums, Jordan has developed strategies that include both military operations and
ideological measures aimed at dismantling extremist propaganda.

In addition to terrorism, Jordan’s political landscape is heavily influenced by its proximity to

Israel. The Israeli-Palestinian conflict has long been a source of regional instability. Jordan
faces considerable political and security risks due to its geographical location, particularly
given Israel’s controversial policies towards Palestine. Israel’s actions, which include land
usurpation and violation of international treaties, have fueled regional tensions,
contributing to Jordan’s political challenges. The relationship between Israel and the United
States further complicates Jordan’s political environment, as Israel continues to defy
international norms with impunity.

Economic Factors

Jordan’s economy has been under considerable strain, exacerbated by both regional
conflicts and internal challenges. The ongoing war in Gaza has had a ripple effect on Jordan,
disrupting its tourism and investment sectors. The Middle East’s geopolitical instability
continues to pose a risk to Jordan’s economic growth. While Jordan’s exports have shown
resilience, the recovery of the national economy from the COVID-19 pandemic remains
slow. Domestic demand has declined, and financial constraints have further restricted
import growth.

Jordan’s limited natural resources further complicate its economic situation. With high
public debt, widespread unemployment, and increasing energy costs, the country faces
numerous financial challenges. The country has also imposed high taxes to cover its
obligations, particularly in hosting refugees from Palestine, Syria, Lebanon, Iraq, and Libya.
Despite these pressures, the agricultural sector offers some hope for recovery and may help
to balance trade with other countries.
Additionally, drug trafficking presents another economic challenge, both in terms of lost
productivity and the financial burden of combating the drug trade. The costs of health
programs, addiction treatment, and anti-drug operations weigh heavily on Jordan’s
economy. The illegal drug trade not only reduces labor productivity but also leads to
societal issues, including family disintegration and increased criminal activity.
- In addition to these challenges, Jordan's limited water resources have forced the country
to enter agreements to purchase water from Israel. This reliance on external water sources
has raised concerns about Jordan's long-term water security and its ability to sustain
agriculture and meet the needs of its growing population. The water purchase agreements,
while necessary to address immediate shortages, add financial burdens to the state and
increase Jordan’s dependence on regional dynamics.

Social Factors

Jordan’s social landscape is deeply affected by regional conflicts and demographic changes.
With a population of 10 million people and an additional 1.5 million Syrian refugees,
Jordan’s population has surged by 20%. This sudden influx has put immense pressure on
the country’s social systems, particularly healthcare and employment. The high rate of
unemployment is a direct consequence of the growing population and limited resources,
which has also strained the education and healthcare sectors.

The COVID-19 pandemic has further exacerbated social issues in Jordan. The pandemic led
to financial destruction, loss of biodiversity, and a sharp decline in economic activity, all of
which continue to affect the country. Government responses to the pandemic were slow,
further complicating Jordan’s social and economic recovery. The pandemic’s impact on
labor productivity has been significant, and many sectors have not fully recovered, which
has deepened Jordan’s social and economic problems.

Moreover, the ideological battle against terrorism plays a crucial role in shaping Jordan’s
social landscape. Jordan has actively used media and information campaigns to combat
extremist ideologies, promoting alternative, peaceful narratives. These efforts are essential
in reducing the social appeal of extremist groups and promoting social cohesion within the
kingdom.

Technological Factors

Technological advancement plays an important role in Jordan’s efforts to combat both

terrorism and economic challenges. The integration of military and security operations with
modern counterterrorism strategies is vital. Jordan’s counterterrorism efforts rely heavily
on intelligence gathering, surveillance, and cyber capabilities to disrupt extremist activities.
These technological advancements enable Jordan to stay ahead of emerging threats and
ensure national security.
In addition to its security applications, technology can help Jordan address its economic
challenges. The agricultural sector, for example, may benefit from technological innovations
that improve efficiency and productivity, thereby helping the country reduce its reliance on
imports and boost trade.

Technology also supports Jordan’s media campaigns, which are integral to the ideological
battle against terrorism. By leveraging modern media platforms, Jordan can disseminate
counterterrorism narratives more effectively, reaching broader audiences and countering
extremist propaganda.

Legal Factors

Jordan faces significant legal challenges, both domestically and internationally. One of the
major legal issues stems from its geopolitical situation, particularly its relationship with
Israel. Israel’s ongoing violations of international treaties and disregard for international
norms have placed Jordan in a difficult legal position. These actions have contributed to
regional instability and have forced Jordan to address the legal implications of refugee
influxes and territorial disputes.

Domestically, Jordan has had to adapt its legal framework to address the influx of refugees,
drug trafficking, and other criminal activities. The rise in drug smuggling, arms trafficking,
and related criminal activities has necessitated stronger legal measures to maintain internal
security. Jordan has conducted military operations inside Syria to combat drug smuggling,
highlighting the legal complexities of cross-border security operations.

Jordan’s legal framework also extends to the economic challenges it faces. The country has
implemented strict financial regulations and tax policies in an attempt to stabilize the
economy, although these measures have been met with some resistance from the public,
particularly due to the high tax burden placed on already low incomes.

Environmental Factors

Jordan’s environmental challenges are closely tied to its economic and social issues. The
country faces severe resource depletion, particularly in terms of water and energy. Water
scarcity is one of Jordan’s most pressing environmental concerns, exacerbated by the influx
of refugees and the growing population. The high energy bill is another major challenge, as
Jordan relies heavily on imported energy, further straining the economy.

The agricultural sector, which plays a significant role in Jordan’s economy, is also affected
by environmental challenges. Climate change and water scarcity threaten agricultural
productivity, although recent signs of recovery in the sector offer hope. Sustainable
agricultural practices and water management will be key to ensuring the long-term viability
of the sector.
Additionally, the COVID-19 pandemic highlighted the interconnectedness of environmental
and economic health. The loss of biodiversity and the shutdown of vital sectors due to
reduced productivity had a profound impact on Jordan’s economy and environment. As the
country looks toward recovery, environmental sustainability will be crucial in ensuring
future resilience.

This PESTLE analysis highlights the complex and interrelated challenges that Jordan faces.
From political instability and economic pressures to social upheaval and environmental
concerns, Jordan must navigate a myriad of issues to ensure its long-term stability and
prosperity.