Israeli restrictions undermine Palestinian economy: World Bank
Burdened by Israeli restrictions that paralyse the economy of the occupied West Bank and the Gaza Strip, Palestinians have become more and more reliant on outside assistance, the World Bank said on Wednesday.
By Agencies |
JERUSALEM: Burdened by Israeli restrictions that paralyse the economy of the occupied West Bank and the Gaza Strip, Palestinians have become more and more reliant on outside assistance, the World Bank said on Wednesday.
"As the Palestinian economy declines, it is becoming increasingly dependent on foreign aid," the bank said in a report on economic prospects in Palestinian territories.
The report highlighted the fact the Palestinian Authority, led by moderate president Mahmud Abbas, had received $1.2 billion (857 million euros) in budget support in the eight months through August, in addition to about $300 million (214 million euros) in development aid.
It pointed out that official poverty rates of 51.8 per cent in Gaza and 19.1 per cent in the West Bank soar to 79.4 per cent and 45.7 per cent respectively if remittances and food aid are excluded and the rates are based on household income only.
"With a growing population and a shrinking economy, real per capita GDP is now 30 per cent below its height in 1999," the report said. Increasing restrictions imposed by Israel, which says they are key to preventing attacks, undermine the Palestinian economy, it said.
"With due regard to Israel's security concerns, there is consensus on the paralytic effect of the current physical obstacles placed on the Palestinian economy." The network of Israeli barriers and checkpoints that riddle the West Bank and partition it from the Gaza Strip, Israel and the rest of the world are only some of the restrictions imposed by Israel, the bank said.
Aid and reform are unlikely to revive the Palestinian economy unless Israel removes economic restrictions at the same time, it said.
"As the Palestinian economy declines, it is becoming increasingly dependent on foreign aid," the bank said in a report on economic prospects in Palestinian territories.
The report highlighted the fact the Palestinian Authority, led by moderate president Mahmud Abbas, had received $1.2 billion (857 million euros) in budget support in the eight months through August, in addition to about $300 million (214 million euros) in development aid.
It pointed out that official poverty rates of 51.8 per cent in Gaza and 19.1 per cent in the West Bank soar to 79.4 per cent and 45.7 per cent respectively if remittances and food aid are excluded and the rates are based on household income only.
"With a growing population and a shrinking economy, real per capita GDP is now 30 per cent below its height in 1999," the report said. Increasing restrictions imposed by Israel, which says they are key to preventing attacks, undermine the Palestinian economy, it said.
"With due regard to Israel's security concerns, there is consensus on the paralytic effect of the current physical obstacles placed on the Palestinian economy." The network of Israeli barriers and checkpoints that riddle the West Bank and partition it from the Gaza Strip, Israel and the rest of the world are only some of the restrictions imposed by Israel, the bank said.
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Aid and reform are unlikely to revive the Palestinian economy unless Israel removes economic restrictions at the same time, it said.
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