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Home > News & Analysis > Analysis
Israel still strangles the Palestinian economy
Sam Bahour, The Wall Street Journal , Aug 22, 2009

gaza-aid_2.jpg
A Palestinian man sits near sacks of flour at a UN Relief and Works Agency (UNRWA) warehouse in Ash-Shati refugee camp, in Gaza City. UNRWA recently launched its Gaza Ramadan Appeal for 181 million dollars, in order to provide food, jobs, and cash assistance to the poor in Gaza. (Wissam Nassar, Maan Images)

Palestinians are as eager as anyone to see positive economic development for their tormented country. But they know full well that real economic progress awaits their release from Israeli military occupation (West Bank, East Jerusalem) and siege (Gaza Strip).

Consider the recent media promotion of the Netanyahu government's view that the occupied West Bank is witnessing rapid economic growth. Thomas Friedman picked up on that theme in his New York Times column, as did Michael Oren, Israel's ambassador to the United States, in this newspaper. The selective economic data they provide ignore the reality: Occupied Palestinian territory is not a sovereign country where traditional economic measures apply.

I was the manager who oversaw the establishment of the first modern mall in the West Bank - the Plaza Shopping Center in El Bireh. I can attest that the success of a West Bank mall rests on a thin layer of elite consumer privilege poised precariously over a chasm of widespread disempowerment. Until West Bank Palestinians gain free and open access to the world economy, beyond the markets of the occupying power, major enterprises in Palestinian towns will suffer.

Objective analyses by the World Bank suggest that Israel's repressive practices will not permit the Palestinian economy to develop meaningfully.

On water, a bank report from April 2009 notes that the "availability of water resources is highly disparate, with fresh water per capita in Israel approximately four times that of WBG [West Bank and Gaza]."

On mobility: "In the West Bank, restrictions on movement of people and access to natural resources has stifled economic growth."

On security: "Recurrent destruction of trees, private homes and public infrastructure, as well as [Israeli] settlers' encroachments on private land create a permanent state of insecurity."

To read the full article please visit The Wall Street Journal.


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