Posted on 03/09/2002 11:48:16 AM PST by knighthawk
BADLY stifled by the Israeli military blockade and the raging violence, the Palestinian economy has lost $US2.4 billion ($A4.59 billion) in income between the beginning of the uprising in September 2000 and the end of last year, according to the World Bank.
"This is an economic crisis that was very directly precipitated by closures," said World Bank director for the West Bank and Gaza Strip, Nigel Roberts, yesterday.
"There's also been physical damage, but the economic impact is far less than that caused by closures," Roberts said, pointing to another $US300,000 ($A573,284) lost by Israel's destruction of Palestinian infrastructure.
Before the Palestinian uprising which erupted in September 2000, some 120,000 Palestinians held down jobs inside Israel.
By the first quarter of 2001, when the territories were completely sealed off, that number dropped to zero, although 50,000 Palestinians are again working illegally in the Jewish state.
The closure, as well as checkpoints inside the territories, also severely hit workers inside the West Bank and Gaza Strip.
A quarter of the Palestinian labour force is unemployed according to official Palestinian statistics. Figuring in Palestinians who stopped looking for jobs and the rate jumps to more than 35 per cent.
But the Palestinian economy has not collapsed completely.
One reason is that the 50,000 illegal Palestinian workers in Israel are earning wages two to three times higher than they would be at home.
More significantly, however, Roberts said, is that international donors have massively "supported the Palestinian Authority payroll, preventing 120,000 civil servants from being laid off and infusing cash in the economy, which sustained a minimal level of domestic demand".
The private sector, which has received little donor attention, is the main victim of the crisis.
"Considering that the recovery of the Palestinian economy and its long-term health ultimately depends on the private sector, the relative lack of support provided to the private sector during the current crisis represents a big hole in the donor agenda," Roberts said.
Besides assessing losses, the World Bank report, which will be released later this month, identifies Palestinian financing priorities for 2002.
The total package cost, to be mostly financed by grants and which was extensively discussed with the donor community and the Palestinian Authority, differs depending on three political scenarios.
With a resumption of the peace process, an easing of the closure, and the payment of revenues currently being withheld by Israel - estimated by the International Monetary Fund at $US385 million ($A735.72 million) - the 2002 assistance needs for the Palestinian territories could total $US900 million ($A1.72 billion).
If the present situation continues, with the closures and varying intensity and physical damage, the need could rise closer to $US1.3 billion ($A2.48 billion).
But if the situation becomes even worse, with a tighter application of the closure policy which would totally paralyse people and the movement of goods, $US1.5 billion ($A2.87 billion) would be needed to sustain minimal welfare and economic activity.
"The needs far exceeds what is available, but there is nonetheless a considerable amount that can be tapped," Roberts said, although the World Bank assumes for all three scenarios that the Palestinian Authority will continue to exist.
"Underlying the major financial commitments is the donors' ongoing commitment to support the creation of a Palestinian state," stressed Roberts.
Well, DUH! The PALESTINEANS are the SOLE CAUSE AND INSTIGATORS of the raging violence.
Isn't this statement like the child crying for sympathy that he's an orphan because he's murdered his parents?
Ironically, their economy is doing better then it did pre 1967.
If it was not for Israel that land would look like Afghanistan ,and they would still be camel jockeys..
Israel needs to clean up their house. They need to find out who is hiring these illegals, pull their citizenship, confiscate everything they own, and toss them over the border into Palestine.
Adjust. IMO, the closures should be permanent.
Getting crippled tends to happen when you shoot yourself in the foot...
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