Years of economic retrenchment on top of almost four decades of occupation have increased poverty, reduced and distorted production, and heightened dependence on Israel. Prescriptions for Palestinian economic recovery must take into account the Israeli occupation, protracted conflict since 2000, and the imperatives created by the unilateral Israeli withdrawal from Gaza, an United Nations Conference on Trade and Development (UNCTAD) report warns. It recommends that the focus should be on forming institutions that will serve the needs of an upcoming Palestinian State rather than aiming solely at reforming a transitional government, and that efforts to economic revival should target poverty reduction while expanding production and trade. Read more about UNCTAD: "Palestinian preparations for statehood should focus on pro-poor economic reform"
As the Israeli disengagement from the Gaza Strip draws to a close, hopes for economic prospects in this impoverished, strife-torn land have been renewed. Already, the EU has pledged investments in Gaza, with 700 million-800 million euros of mainly infrastructure projects by June, according to Antoine Eric de Haulleville, head of the EU’s International Management Group mission in Palestine. But Gaza’s prospects of economic success are clouded if it remains cut off from the West Bank and from the rest of the world after the Israeli withdrawal, experts have said. According to the World Bank, a lot more than dollars and disengagement is needed if the Palestinian economy, now in shambles, is to revive. Read more about Israeli exit fuels hope for Gaza economy
The US adminstration and Palestinian leaders have signed an agreement for the transfer of $50 million in direct assistance to the Palestinians. The U.S. officials made a formal announcement with Minister of Finance Salam Fayyad at the Palestinian Prime Minister’s office on Wednesday. The agreement between the Palestinian Ministry of Finance and the U.S. Agency for International Development (USAID) underlines U.S. confidence in the Palestinian Authority’s reform program and aims to ensure that the Gaza disengagement is a success. Read more about USAID agrees to transfer $50 million to Palestinian Authority
Special Envoy on Disengagement, James Wolfensohn, returned to Jerusalem on Thursday 8th July 2005. During this visit, he focused on resolution of the six joint issues introduced in the last Periodic Report. When he left on 15 July much progress had been made on most of the issues with proposals being seriously considered by the parties: border crossings and trade corridors, a three phase approach to “back – to – back” for all crossings but Rafah, connecting the Gaza Strip with the West Bank, convoy transport immediately after disengagement, movement in the West Bank, air and sea ports, houses in settlements and greenhouses in the settlements. Read more about Special Envoy Gaza Disengagement left region with progress made
James Wolfensohn, Special Envoy for Disengagement, concluded his fourth visit to the region on 10 August since his appointment at the beginning of June 2005. With Disengagement scheduled to begin in a week’s time, all efforts have been focused on resolution of the six joint issues: border crossings and trade corridors, the connection between the Gaza Strip and the West Bank, movement in the West Bank, air and sea ports, settlement houses, green houses in the settlements. In addition there are three Palestinian issues: the fiscal crisis, the PA faces a budget shortfall of approximately $400 million; the three year plan for Palestinian development; and a package of quick impact economic programs. Read more about Special Envoy on Disengagement Wolfensohn concludes his fourth visit to the region
Though one of Gaza’s oldest active fishermen, Suheil Sa’dallah spends most of his time loitering around Gaza’s makeshift fisherman’s port, where dozens of docked boats, including his own, bob gently in the sea. In the face of stringent Israeli restrictions on Palestinian fishing zones, and the absence of a modern industrial port, many fishermen there, like Sa’dallah, can no longer make a living. He talks about the days their catches exceeded 700kg a day “of every fish your heart desires”, when the only limit on fishing zones were as far as the eye could see. A new port would mean better equipment, modern storage facilities for importing and exporting fish, and assuming Israeli restrictions are lifted, improved catches. Read more about Gaza fishermen's livelihood on the line
This week, the United States said it may sell up to $600 million in equipment and services to Israel for maintenance of the engines on the Israeli Air Force’s F-15 and F-16 figher planes. The sale would cover support for Pratt and Whitney F-100 engines, spare and repair parts, testing, training, and other services for 10 years, the U.S. Defense Department said in a notice to the American Congress. Athough the US government has reportedly postponed working with Israel to develop a Joint Strike Fighter airplane because of concern about Israel’s sales to China, the US has provided Israel with funds to develop new weapons. According to US law, government authorized transfers or sales of controlled defence articles can be used only for internal security or defensive purposes. Read more about US may sell up to $600 million to Israeli Air Force, after Israel-US agreement on China
The OPEC Fund for International Development today announced the allocation of fresh resources to its Special Grant Account for Palestine. The US$15 million replenishment was approved by the Fund’s highest policy-making body, the Ministerial Council, meeting at its 26th Annual Session in Seefeld, Austria. The Special Account was established by the Fund in 2002, with an initial endowment of US$10 million, to channel assistance to operations that would alleviate hardship and prevent further impoverishment and suffering among the Palestinian people. Boosted by an additional US$15 million in 2004, the Account has supported numerous initiatives, ranging from the rebuilding of damaged infrastructure and the provision of medical assistance, to micro-credit and a wide range of capacity-building and social projects. Read more about OPEC Fund replenishes special grant account for Palestine
Despite a new climate of dialogue among Israelis and Palestinians, conditions of life for workers and their families in the occupied Arab territories continue to be extremely hard, according to a report issued by the International Labour Office (ILO). While domestic output grew in 2004 following four years of recession in the Palestinian economy, the unemployment rate in the occupied Arab territories increased to close to 26 per cent, reaching a record 224,000 unemployed, says the report. Fewer than half of all men of working age and only 10 per cent of women of working age are employed. As a result, every employed person in the region supports six persons in the total population. Read more about Situation of workers in occupied Palestine continues to deteriorate
The American government launched an ambitious $12 million road reconstruction program Friday to improve commerce and traffic between West Bank communities. The road renovation project is one of the development projects that the U.S. Agency for International Development (USAID) is accelerating as a sign of America’s commitment to support the democratically-elected Palestinian leadership. In consultation with the Palestinian Ministry of Planning and the Palestinian Ministry of Public Works and Housing, seven key roads totaling 38.5 kilometers were selected for reconstruction. Read more about USAID begins repairing seven critical West Bank roads
