Economy

Profiting from the Occupation: The corporate interests fuelling conflict in Palestine


We hear little from the Palestinian Occupied Territories other than endless death, destruction, poverty and despair. While living standards plummet and the death toll rockets, it’s difficult to imagine a less likely place to make a profit. But despite the humanitarian catastrophe unfolding, and the international attention it receives, names familiar on high streets across Europe and the US are actively supporting Israel’s Occupation of Palestine through their business practices – threatening to prolong the misery of the Palestinian people for many years to come. 

Why It Rains: Hamas holding “Israeli” gas reserves hostage


An unexpected energy windfall on Israel’s doorstep promises to resolve Israel’s energy security concerns for years to come. Unfortunately for Israek, it is the Palestinian Authority that controls the licensing of these reserves. So, as Operation Summer Rains washes away the administrative and political structures in the occupied territories, has Israel decided to use Hamas as an excuse to dismantle the PA and seize its energy assets? After the Iranian Revolution cut-off energy supplies in 1979, and the loss of Sinai’s oil in 1982, Israel became dependent on expensive, long-distance energy imports. 

Difficult conditions for Palestinian economy can be overcome, study finds


Deteriorating economic performance and declining living conditions under more intensive restrictions in the occupied Palestinian territory since 2000 have left Palestinians frustrated by higher levels of poverty and unemployment and have damaged the already weak government of the Palestinian Authority (PA), a new UNCTAD study reveals. The study notes that under the Israeli occupation “the institutionalization of restrictive measures, in the context of what my be termed a policy of asymmetric containment, has inflicted a heavy toll on the economy” and has locked it in an “adverse path dependence”. A long-term relief strategy for the Palestinian economy is needed, and it is this that may be viewed as non-distorting aid. 

Palestinian Laborers on the Israeli Separation Wall


As the political and military conflict between Palestinians and Israelis wages on, it is the average citizen who has been besieged by harsh realities that have made survival all too difficult. One faction of people who have been left to clamor for economic endurance is the Palestinian laborers. The hardships faced under occupation, systemic closures, the Palestinian Authority’s (PA) history of corruption, and lack of employment opportunities in the Occupied Palestinian Territories (OPT) have led many to seek employment on the Israeli Separation Wall. 

Poverty in the Gaza Strip


The conditions in the OPT has exacerbated the humanitarian situation for Palestinian civilians. Unemployment and poverty rates have increased dramatically. The rate of unemployment is 34% in the OPT as a whole and 44% in the Gaza Strip. This rate rises to 55% during times of complete closure imposed by Israeli Occupation Forces. Likewise, the poverty rate in the OPT is nearly 50%, with the Gaza Strip rate at approximately 70%. This in turn has impacted the per capita income, which decreased by 32% over the past three years, and is actually 40% lower today than it was three years ago. On the economic front, the gross national product decreased to dangerous levels, threatening the agricultural, industrial, commerce, transportation and tourism sectors. 

Palestine: Making a Bad Situation Worse


With Hamas in control of the Palestinian Authority (PA) government, and Western donors are halting all direct aid to it, an already precarious humanitarian situation in the West Bank and Gaza could potentially turn worse. Virtually bankrupt, the PA needs $120 million a month to pay its staff, and an additional $40 million for continued minimum basic services to its constituency. With Israel suspending the transfer of $60 million a month in Palestinian customs receipts, the $35 million the PA collects each month in domestic revenues are not enough to keep it afloat. 

Economic Update: Westbank and Gaza


In recent weeks, both the Government of Israel (GOI) and donors have been considering a variety of economic responses to the outcome of the Palestinian Legislative Council (PLC) election of January 25, 2006, some of which are already under implementation. GOI has suspeneded the regular transfer of revenues which it collects on behalf of the PA; other forms of economic interaction at issue are Palestinian labor access to Israel, and the flow of imports and exports across Palestinian borders with Israel. Donors are planning to reduce various categories of foreign assistance. 

Aid and the Palestine Financial Crisis: A viewpoint on an ongoing debate


The sudden ascent of Hamas to power after the January 25 parliamentary elections in the Palestinian Authority (PA) areas has put at risk two vital sources of Palestinian finance: an aid package by Western donors of about $1 billion a year in humanitarian, developmental and budgetary support; and a monthly transfer by Israel of about $55 million in customs and tax revenues that it collects on behalf of the PA. Preserving the status quo, where international aid and customs revenues transfers are maintained at their 2005 levels, would not prevent Palestinian economic conditions from deteriorating. 

Compensation package for farmers urgently needed


John Ging, Director of UNRWA’s Gaza Field Office, highlighted that “a compensation package is urgently needed for the hundreds of families whose livelihoods have been wiped out by bird flu.” Mr. Ging visited Juhr El-Deik Municipality, at the invitation of the Mayor, to meet with refugee farmers whose chickens have been culled due to recent outbreaks of avian influenza within the Gaza Strip. The culls were ordered and carried out by the Palestinian Ministry of Health. 

Update: The Implementation of the Agreement on Movement and Access


Rafah was open daily during the reporting period for the standard nine hours. On 14 March four truckloads of furniture and handicrafts were exported via Rafah to Egypt, using the back-to-back system under the supervision of the EU BAM. No other truck loads have crossed since. No security incident on the Palestinian side of the crossing was reported. However, on 14 March, the EU BAM closed Rafah 75 minutes earlier than scheduled. The decision was taken jointly with the Palestinian border officials in reaction to the tense situation in the Gaza Strip due to the events in Jericho. The passages did not open continuously. Karni was open for limited imports on four days only. Exports were allowed on two days. 

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