Guide Development Under Adversity: The Palestinian Economy in Transition

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Hamed, O. Fischer, D.

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Rodrick, and E. Tuma, eds. The Economics of Middle East Peace. Krugman, P.

International Economics: Theory and Policy. New York: Harper Collins. Lonergan, S. Ottawa: International Development Center. Luski, I. Makhool, B. Competitiveness of Palestinian Industry vs. Jordanian Industry. Mansour, A.

Development Under Adversity The Palestinian Economy In Transition

Palestine and Israel: Subcontracting in the Garment Industry. Murphy, R. Schleifer, and R. Myrdal, G. The Political Element in Economic Theory. Naqib, F. Owen, R.

Development Under Adversity The Palestinian Economy In Transition

Norman, V. This project was perceived from the outset to be a sequel to the influential six-volume report, Developing the Occupied Territories: An Investment in Peace , which was produced by the World Bank with the support of a Palestinian team appointed by the Palestine Liberation Organization.

The production of this book has entailed several iterations of reviewing the manuscript both by MAS and the World Bank; workshops at MAS involving policy makers and researchers on various background papers or chapters, with summaries published in the local media; and a review by various Palestinian ministries dealing with economic matters. The findings of this manuscript were presented and discussed in November at two conferences in Nablus and Gaza City. These conferences were well attended by the research and policy-making communities, and included high-ranking officials from several ministries.

These thorough reviews have enriched and sharpened the discussion and presentation of the manuscript. We trust the book will have the intended impact of providing a better understanding of the difficulties facing both Palestinian economic development and policy-making. The Palestinian economy has been operating far below its enormous potential. The situation has continued to deteriorate since the signing of the Declaration of Principles. Ultimately, a mutually advantageous resolution of political uncertainties is necessary for the economy to embark on a path of strong and sustained growth.

However, an important message emerging from this book is that there are economic policies which the Palestinians and the donors can implement immediately to generate noticeable economic improvements. Per capita expenditure has continued to fall during the interim peace process. At the end of , approximately one-fifth of the population of the West Bank and Gaza Strip were living in poverty, and today the number is probably higher. Accord to Discord: A Political Economy Approach to the Oslo Process By Jamie Levin

The unemployment rate averages roughly 20 percent when the border is open and increases to 30 percent. In , an average of , Palestinians worked in Israel; in the number dwindled to 28, This was the result of a reduced number of permits issued by Israel to Palestinians plus the sharp increase in border closures, which were in effect for more than one-third of Closures are only the most obvious manifestation of Israeli policies.

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An example of a less visible hindrance to Palestinian development is the delay from inspection procedures which make it virtually impossible for Palestinians to export perishable goods, like flowers and strawberries. Consequently, many promising export industries have been shut down and farmers have reverted to low-value crops, such as potatoes and onions, grown for local consumption.

Despite these obstacles and setbacks, the Palestinian economy has enormous potential.

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The most important asset any country has is its people. It takes much more time to build a high-quality work force than it does to build infrastructure and factories. The Palestinian economy is blessed with excellent people. Its general development indicators-including life expectancy, literacy, and child mortality rates are among the best in the Middle East and North Africa region.

The average adult in the West Bank and Gaza Strip has spent eight years in school. The Palestinian economy is operating at less than half of that level. Order a copy Copyright or permission restrictions may apply. We will contact you if necessary.

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    The Palestinian Economy and the Oslo “Peace Process" by Leila Farsakh

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