Palestine Economy
The economic prospects of Palestine were the subject of a report by the World Bank last summer. The WB study was requested by the Palestinian Authority (PA), the Government of Israel and the Local Aid Coordination Committee.
Extracts from the introduction by the WB President are:
The key to Palestinian economic growth is private investment, which has declined dramatically since mid-2000. Since investors cannot be expected to bring capital to an area in conflict, both the PA and Israel must do their utmost to restore calm and a sense of security in the West Bank and Gaza. In addition, the PA will need to move decisively to create an environment more attractive to investors.
Above all, Israel’s restrictions on the movement of people and goods need major overhaul. These closure measures stifle any hope of Palestinian economic revival.
Donor assistance levels today average almost US$1 billion each year. These contributions have played a vital role in alleviating hardship, and remain indispensable. Without a change in Palestinian economic prospects, though, it is difficult to expect donors to increase existing aid levels. http://lnweb18.worldbank.org/mna/mena.nsf/Attachments/Disengagement+Paper/$File/Disengagement+Paper.pdf
Mr Wolfensohn thinks stability in the region would assure increased aid flows and produce much inward investment. "Without an economic revival, today’s Palestinian youth face a gloomy future, and their desperation will endanger any peace process."
This is a very current topic. Last weekend the G7 grouping decided to investigate how best to finance international assistance, with a view to reporting the findings to the G8 summit in July.
Extracts from the introduction by the WB President are:
The key to Palestinian economic growth is private investment, which has declined dramatically since mid-2000. Since investors cannot be expected to bring capital to an area in conflict, both the PA and Israel must do their utmost to restore calm and a sense of security in the West Bank and Gaza. In addition, the PA will need to move decisively to create an environment more attractive to investors.
Above all, Israel’s restrictions on the movement of people and goods need major overhaul. These closure measures stifle any hope of Palestinian economic revival.
Donor assistance levels today average almost US$1 billion each year. These contributions have played a vital role in alleviating hardship, and remain indispensable. Without a change in Palestinian economic prospects, though, it is difficult to expect donors to increase existing aid levels. http://lnweb18.worldbank.org/mna/mena.nsf/Attachments/Disengagement+Paper/$File/Disengagement+Paper.pdf
Mr Wolfensohn thinks stability in the region would assure increased aid flows and produce much inward investment. "Without an economic revival, today’s Palestinian youth face a gloomy future, and their desperation will endanger any peace process."
This is a very current topic. Last weekend the G7 grouping decided to investigate how best to finance international assistance, with a view to reporting the findings to the G8 summit in July.
posted by IJ at 9:45 AM
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