World Bank Declares Palestinian Economy Unfit for Statehood

World Bank Declares Palestinian Economy Unfit for Statehood

The World Bank released a detailed report concluding that the economy of Palestine is unsuitable for statehood and incapable of sustaining itself without foreign aid.

The World Bank is responsible for monitoring international economic developmentOn Wednesday the World Bank released a report stating that the Palestinian economy is both unstable and unsustainable. The report, which has been widely covered by international media, claims that foreign aid is primarily responsible for the slow growth of the Palestinian economy during the past decade.

The 181-page report concludes that the Palestinian Authority has not done enough to build a prosperous economy despite its success in constructing institutions of government, according to AFP.

The PA has faced a fiscal disaster in the past few years and now relies almost exclusively on foreign donations to meet its $1.5 billion in unfunded debt obligations and $500 million of immediate expenses, reports Ahramonline. It cannot meet these financial challenges through domestic collections because the local economy of the West Bank has lost jobs and productivity in most of its industries. Gaza, after suffering through several years of crippling Israeli blockades has virtually zero noteworthy internal economic growth.

According to the data published by the World Bank, the PA itself is the primary driver of economic growth in Palestine. This growth is not the result of loans or grants for commercial projects, but instead the result of government expansion. In a nation with a diverse economic base government hiring can be an effective method of stimulating growth. In a nation like Palestine, which has no domestic economy to prop up, government hiring is simply an added expense.

The World Bank made no attempt to avoid the fact that Israeli policies are primarily responsible for the stagnation of the Palestinian economy. Unfortunately, this conclusion has been hidden at the bottom of many media reports.

The aforementioned blockade of Gaza has turned what was once a prosperous region – with tourism, agriculture and local businesses – into a giant prison. Many consumer goods are infrequently available and, due to the high cost of smuggling them through the Israeli blockade, are often exorbitantly expensive.

Meanwhile, the continued expansion of Israeli settlements into the West Bank has destroyed or confiscated natural resources and productive land. These settlements compound the problem by flooding the Palestinian consumer market with subsidized goods. The imports send Palestinian income back to Israel to further enrich the Israeli economy at the expense of the West Bank.

Israel is not the only factor limiting Palestinian economic potential – poor leadership and planning in Ramallah have taken their toll as well – but many of the obstacles facing Palestine in the future can be easily overcome if not for Israeli interference. As it currently stands, the World Bank is staunchly pessimistic regarding Palestine’s potential to stand on its own as a legitimate state member of the international system.

IMEMC - International Middle East Media Center is a nsnbc partner news agency.

About nsnbc international

nsnbc international is a daily, international online newspaper, established on 25 February 2013. nsnbc international is independent from corporate, state or foundation funding and independent with regards to political parties. nsnbc international is free to read and free to subscribe to, because the need for daily news, analysis and opinion, and the need for independent media is universal. The decision to make nsnbc international freely available was made so all, also those in countries with the lowest incomes, and those inflicted by poverty can access our daily newspaper. To keep it this way, however, we depend on your donation if you are in a position to donate a modest amount whenever you can or on a regular basis. Besides articles from nsnbc's regular contributors and staff writers, including nsnbc editor and founder Christof Lehmann, it features selected articles from other contributors through cooperation with media partners such as Global Research, The 4th Media, AltThaiNews Network and others.
This entry was posted in Economy, Middle East, News, World and tagged , , , , , , , , , , , , . Bookmark the permalink.

2 Responses to World Bank Declares Palestinian Economy Unfit for Statehood

  1. Pingback: World Bank Declares Palestinian Economy Unfit for Statehood | MIddle East Politics | Scoop.it

  2. Pingback: Under Israeli blockade of Gaza, books are a rare, cherished commodity | nsnbc

Comments are closed.