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World Bank calls on Israel to rescue Palestinian economy
JERUSALEM: The World Bank called on Israel to sharply reduce army closures which have decimated trade and employment in the Palestinian Authority during the last four years.
The latest report on the PA economy by the World Bank, "Four years - Intifada, Closures and Palestinian Economic Crisis" reveals average incomes have dropped by more than a third and a quarter of the workforce is unemployed.
The latest report on the PA economy by the World Bank, "Four years - Intifada, Closures and Palestinian Economic Crisis" reveals average incomes have dropped by more than a third and a quarter of the workforce is unemployed.
Poverty and unemployment have risen drastically since the current wave of bloodshed began in 2000, and the bank said the crisis can only end by opening foreign markets to Palestinians.
It said Israeli military clampdowns in the West Bank and Gaza had throttled the Palestinian economy. Israel has ruled out lifting security closures without an end to militant attacks.
The World Bank's first appraisal of Palestinian economic life since May 2003 was issued a month before the next meeting of international donors who prop up the Palestinian economy. It said 47 percent of the 3.6 million Palestinians in the territories were now living below the poverty line, compared with 20 percent in 1999.
Up to 600,000 Palestinians could not afford basic needs such as food, clothing and shelter, the 93-page report said.
Unemployment had risen to 28.6 percent by the second quarter of 2004, compared with 10 percent before the intifada. Among young people, who comprise the great majority of suicide bombers and other militants, the jobless rate was close to 40 percent. The Palestinians' per capita GDP had plunged 37 percent since 1999, the bank said.
The economy mounted a brief recovery in 2003 when violence subsided during a short-lived cease-fire and a reduction in Israeli-imposed curfews. But it has stagnated further since even with the overall level of violence down, the report said.
International donations that averaged $950 million annually from 2001-2003 have warded off economic disaster, but "donor fatigue" looms as the conflict drags on even at the current lower level of violence, the bank warned.
"The easing of internal closures alone will not be enough to create jobs and fight poverty here. Ending the Palestinian economic crisis will also depend on opening external borders so the private sector can trade in international markets," it said. "At the same time, (we) call on the Palestinian Authority to revive its reform program and maintain fiscal discipline to create an investment-friendly climate."
Analysts say Palestinians cannot hope for serious foreign investment before they tackle rampant corruption and a disorder of armed factions that wield de facto power in many areas. - Agencies
http://dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=10339
It said Israeli military clampdowns in the West Bank and Gaza had throttled the Palestinian economy. Israel has ruled out lifting security closures without an end to militant attacks.
The World Bank's first appraisal of Palestinian economic life since May 2003 was issued a month before the next meeting of international donors who prop up the Palestinian economy. It said 47 percent of the 3.6 million Palestinians in the territories were now living below the poverty line, compared with 20 percent in 1999.
Up to 600,000 Palestinians could not afford basic needs such as food, clothing and shelter, the 93-page report said.
Unemployment had risen to 28.6 percent by the second quarter of 2004, compared with 10 percent before the intifada. Among young people, who comprise the great majority of suicide bombers and other militants, the jobless rate was close to 40 percent. The Palestinians' per capita GDP had plunged 37 percent since 1999, the bank said.
The economy mounted a brief recovery in 2003 when violence subsided during a short-lived cease-fire and a reduction in Israeli-imposed curfews. But it has stagnated further since even with the overall level of violence down, the report said.
International donations that averaged $950 million annually from 2001-2003 have warded off economic disaster, but "donor fatigue" looms as the conflict drags on even at the current lower level of violence, the bank warned.
"The easing of internal closures alone will not be enough to create jobs and fight poverty here. Ending the Palestinian economic crisis will also depend on opening external borders so the private sector can trade in international markets," it said. "At the same time, (we) call on the Palestinian Authority to revive its reform program and maintain fiscal discipline to create an investment-friendly climate."
Analysts say Palestinians cannot hope for serious foreign investment before they tackle rampant corruption and a disorder of armed factions that wield de facto power in many areas. - Agencies
http://dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=10339
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Despite a short-lived increase in Palestinian jobs in 2003, the economy is performing well below its potential, said a World Bank report.
Unemployment stood at 25%, compared with 10% before the uprising against Israeli occupation four years ago.
Young people are particularly hard hit with 37% out of work, compared with 14% four years ago.
But 104,000 new jobs were created last year during a brief easing of violence and border closures.
However, during the first half of this year, the Palestinian economy lost more than 22,000 jobs.
Last year's growth rate of 6% can also be attributed to this temporary gap in violence, the report said.
According to the report, Intifada, Closures and Palestinian Economic Crisis: An Assessment, there is a close link between the number of border closures and Palestinian economic problems.
Border closures restrict the movement of people and goods, slowing down trade.
Closures hit trade
"Closures are a key factor behind today's economic crisis in the West Bank," said Nigel Roberts, World Bank country director for the West Bank and Gaza.
Nearly half of all Palestinians - some 47% - live below the poverty line and are particularly vulnerable to economic shocks.
The report said even more would be on the poverty line without an average of $950m a year from international donors, some of which goes towards job creation.
It also called on the Palestinian Authority to revive its reform programme and maintain financial discipline to create an investment-friendly climate.
This week Colin Powell, US Secretary of State was visiting the West Bank to stress US support for a smooth Palestinian election in January.
http://news.bbc.co.uk/2/hi/business/4034581.stm
Unemployment stood at 25%, compared with 10% before the uprising against Israeli occupation four years ago.
Young people are particularly hard hit with 37% out of work, compared with 14% four years ago.
But 104,000 new jobs were created last year during a brief easing of violence and border closures.
However, during the first half of this year, the Palestinian economy lost more than 22,000 jobs.
Last year's growth rate of 6% can also be attributed to this temporary gap in violence, the report said.
According to the report, Intifada, Closures and Palestinian Economic Crisis: An Assessment, there is a close link between the number of border closures and Palestinian economic problems.
Border closures restrict the movement of people and goods, slowing down trade.
Closures hit trade
"Closures are a key factor behind today's economic crisis in the West Bank," said Nigel Roberts, World Bank country director for the West Bank and Gaza.
Nearly half of all Palestinians - some 47% - live below the poverty line and are particularly vulnerable to economic shocks.
The report said even more would be on the poverty line without an average of $950m a year from international donors, some of which goes towards job creation.
It also called on the Palestinian Authority to revive its reform programme and maintain financial discipline to create an investment-friendly climate.
This week Colin Powell, US Secretary of State was visiting the West Bank to stress US support for a smooth Palestinian election in January.
http://news.bbc.co.uk/2/hi/business/4034581.stm
There seems to be no end to some people's gall. The Palestinians started the intifada and effectively caused the destruction of their economy, and now Israel is expected to step in and rehabilitate it...
Israel has more than its own share of economic problems to engage in this moral folly.
Israel has more than its own share of economic problems to engage in this moral folly.
As long as Israel occupies the West Bank and Gaza, it is responsible for the Palestinians. Palestinians cant move freelyor engage in normal economic activities because of the occupation. If the occupation ends and Palestinians have complete control over their country and borders, then Israel will no longer be responsible. To say Israel is not responsible is like a kidnapper letting a hostage starve and blaming the victim becuase they were always whining about wanting to be free.
It's one thing to demand that Israel not deprive ordinary Palestinians of basic utilities: water, power from its electric grid, etc. since Israel administrates the disputed territories.
However, since this very administration would have ended had Arafat accepted either the Camp David proposal or Taba, but wasn't since these proposals were declined and actually responded to with an ongoing terroristic campaign which drew Israeli responses that ultimately led to the collapse of Palestinian economy, the Palestinian leadership are the ones responsible for rebuilding their economy as they're the sole party holding the key that will allow for that to happen -- ending the violence and incitement to violence and hatred that are preventing Israel from releasing its reluctant grip on the Palestinian population's freedoms.
However, since this very administration would have ended had Arafat accepted either the Camp David proposal or Taba, but wasn't since these proposals were declined and actually responded to with an ongoing terroristic campaign which drew Israeli responses that ultimately led to the collapse of Palestinian economy, the Palestinian leadership are the ones responsible for rebuilding their economy as they're the sole party holding the key that will allow for that to happen -- ending the violence and incitement to violence and hatred that are preventing Israel from releasing its reluctant grip on the Palestinian population's freedoms.
Four years since the outbreak of the intifada in September2000 , the Palestinian economy continues to be mired in deep recession, according to a World Bank report released Tuesday.
According to the report, the Palestinian economy is still severely depressed compared with the pre-intifada period, with closures stifling economic activity and restricting the movement of people and goods.
"Closures are a key factor behind today's economic crisis in the West Bank. They have fragmented Palestinian economic space, raised the cost of doing business and eliminated the predictability needed to conduct business," said Nigel Roberts, World Bank Country Director for the West Bank and Gaza.
The report indicated that the living conditions of Palestinians have dramatically deteriorated. Despite economic stabilization in2003 , some 47 percent of Palestinians live below the poverty line. The World Bank also said that some600 , 000Palestinians cannot afford to satisfy their basic needs in food, clothing and shelter to survive. Facing what is known as subsistence poverty, this group - whose expenditures amount to less than $1. 5a day per person - has become increasingly vulnerable to economic shocks.
The unemployment rate stood at 25 percent in2003 , compared with10 percent before the intifada. Young people in particular were hard hit - 37percent were without jobs compared with 14 percent before the intifada. (menareport.com)
http://www.albawaba.com/headlines/TheNews.php3?sid=289388&lang=e&dir=business
According to the report, the Palestinian economy is still severely depressed compared with the pre-intifada period, with closures stifling economic activity and restricting the movement of people and goods.
"Closures are a key factor behind today's economic crisis in the West Bank. They have fragmented Palestinian economic space, raised the cost of doing business and eliminated the predictability needed to conduct business," said Nigel Roberts, World Bank Country Director for the West Bank and Gaza.
The report indicated that the living conditions of Palestinians have dramatically deteriorated. Despite economic stabilization in2003 , some 47 percent of Palestinians live below the poverty line. The World Bank also said that some600 , 000Palestinians cannot afford to satisfy their basic needs in food, clothing and shelter to survive. Facing what is known as subsistence poverty, this group - whose expenditures amount to less than $1. 5a day per person - has become increasingly vulnerable to economic shocks.
The unemployment rate stood at 25 percent in2003 , compared with10 percent before the intifada. Young people in particular were hard hit - 37percent were without jobs compared with 14 percent before the intifada. (menareport.com)
http://www.albawaba.com/headlines/TheNews.php3?sid=289388&lang=e&dir=business
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