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Managing to maintain an independent stance in the face of enormous international pressure, the Hashemite Kingdom of Jordan under King Hussein (1953–99) evolved in the late 20th century as a parliamentary democracy that promoted liberalization of its economy. After succeeding to the throne upon his father's death, King Abdallah II instituted political reforms aimed at fighting poverty and ending political corruption. With a per capita income of $4,800, Jordan is ranked 139th of 232 countries in world incomes. Official estimates place the poverty rate at 15 percent, but it is likely that the actual rate is at least twice the official count, partly because of the high unemployment rate. There is considerable economic inequity in Jordan, with the richest 10 percent of the population holding nearly 30 percent of all wealth. The United Nations Development Program UNDP Human Development Reports rank Jordan 90th in the world in overall quality-of-life issues.

With only 26 miles (42 kilometers) of coastline along the Gulf of Agaba, Jordan's other significant waterways are the Dead Sea, which is shared with Israel, and the Jordan River, located along the Israeli and Syrian borders. Both Jordan and Israel bear responsibility for the ecological damage done to the Dead Sea, where the water level has diminished to such an extent that it is in danger of disappearing altogether. Proposals for preventing further damage have led to intense controversy, and some environmentalists fear for the ecological balance of the Dead Sea. Around 90 percent of Jordan's land area is arid desert, but the western section of the country experiences a distinct rainy season from November to April. The Great Rift Valley divides the East and West Banks of the Jordan River. As a result of the arid climate, Jordan experiences frequent droughts and periodic earthquakes.

With an average of only 42,268 gallons (160 cubic meters) of water per individual available for consumption each year, Jordan is among the top ten countries in the world suffering from the lack of a fresh natural water supply. Consequently, the government began developing policies to address this issue in the first quarter of the 20th century. Solutions include the use of water-saving devices and the practice of recycling wastewater for agricultural use. Less than 3 percent of Jordan is arable, and the Jordan River provides the only major source of water for agriculture and industry. The government has purposefully curtailed agriculture because of its intensive drain on scarce water supplies. In 2000, the Ministry of Water and Irrigation in conjunction with the American Academy for Educational Development launched the Water Efficiency and Public Information for Action program designed to promote the installation of water-saving devices in homes and businesses and teach Jordanians of all ages and social classes how to conserve water.

Deforestation in Jordan has reduced forested areas to only 1 percent of total land area. Less than 4 percent of the land is nationally protected. Jordan was once home to some 347,000 species of birds. Currently, of 117 endemic bird species, eight are threatened. Of 71 endemic mammal species, 10 are endangered. For instance, the oryx, a large desert antelope, totally disappeared in Jordan in response to hunting and disease. An international effort to restore the oryx to Jordan has been successful, although the animal's survival remains somewhat precarious. Several species of apes are also endangered in Jordan due to their being killed for bush meat and to loss of habitat.

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