17 nov 2013
An official in the Energy Authority said the authority submitted a proposal to the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) to buy fuel from the Israeli occupation to run the Gaza power plant. Deputy Chairman of the Energy Authority Fathi al-Sheikh Khalil told ALRAY Sunday that "the UNRWA shall buy fuel from the Israeli side and Qatar pledge to pay for the differences between Gaza and West Bank in the price of diesel fuel,"
"The UNRWA delivered the proposal to the Israeli side on Wednesday and has not received any response to it until now," Sheikh Khalil pointed out.
He explained that "in the event UNRWA manages to buy the required quantities of fuel to run the power plant, the old timetable of the power cuts shall be effective again [eight-hour power cut a day],"
"The authority is on constant contact with international organizations in the Gaza Strip to negotiate a solution to the blackouts that last for long hours," the official stressed, adding that "the government, for its part, has contacted foreign countries to curb the crisis,"
The lone power plant in Gaza has been on a complete halt for the 17th day in a row for the lack of the diesel fuel needed to run it. The problem had worsened when the Ramallah authority imposed an additional tax on diesel fuel it imports from (Israel).
The Gaza Strip's only power station supplies the Palestinian enclave with up to two-thirds of its energy needs. It needs 600,000 liters of fuel a day to keep running.
Gaza's energy sector is crippled by a ban on importing materials for locally implemented construction, leaving power stations unable to function. The plant suffered damage in Israeli attacks on Gaza in 2008 and 2006.
The electricity crisis has impacted many sectors; significantly environment and health. Observers warned of a disaster that could happen should not a solution to the problem is reached soon.
"The UNRWA delivered the proposal to the Israeli side on Wednesday and has not received any response to it until now," Sheikh Khalil pointed out.
He explained that "in the event UNRWA manages to buy the required quantities of fuel to run the power plant, the old timetable of the power cuts shall be effective again [eight-hour power cut a day],"
"The authority is on constant contact with international organizations in the Gaza Strip to negotiate a solution to the blackouts that last for long hours," the official stressed, adding that "the government, for its part, has contacted foreign countries to curb the crisis,"
The lone power plant in Gaza has been on a complete halt for the 17th day in a row for the lack of the diesel fuel needed to run it. The problem had worsened when the Ramallah authority imposed an additional tax on diesel fuel it imports from (Israel).
The Gaza Strip's only power station supplies the Palestinian enclave with up to two-thirds of its energy needs. It needs 600,000 liters of fuel a day to keep running.
Gaza's energy sector is crippled by a ban on importing materials for locally implemented construction, leaving power stations unable to function. The plant suffered damage in Israeli attacks on Gaza in 2008 and 2006.
The electricity crisis has impacted many sectors; significantly environment and health. Observers warned of a disaster that could happen should not a solution to the problem is reached soon.
16 nov 2013
The London-based Arab organization for human rights (AOHR) appealed in a letter to the European Union foreign policy chief Catherine Ashton and members of the European parliament to pressure the besieging parties to end their blockade on the impoverished Gaza Strip. The Arab organization explained in its letter the tragic humanitarian situation in the Gaza Strip resulting from the restrictions imposed by Israel and Egypt on the population's daily life and the new tax added by the Palestinian Authority in Ramallah to the price of industrial diesel, which caused the only power station in Gaza to stop operating fully.
The organization stated that after the third of last July, the Egyptian military authorities closed the Rafah border crossing at the pretext of the security situation in the Sinai and started to demolish the Rafah tunnels used by the Gazans to meet their daily humanitarian needs without providing any alternatives to its arbitrary inhumane measures.
The organization affirmed that the military government in Egypt only opens the Rafah crossing intermittently and for several hours for the travel of certain passengers who have humanitarian conditions, while the Israeli occupation authority opens its crossing for the entry of limited shipments of goods and then closes them suddenly.
"Until this moment, the (Gaza) power station is still out of service completely and the efforts aimed to reduce fuel prices and allow in fuel shipments through the Karam Abu Salem crossing have failed," the organization said.
"The Egyptian authorities also prevent the entry of the whole fuel aid provided by Qatar for Gaza through either Rafah crossing or Karam Abu Salem crossing," it added.
"The shutdown of the power station in addition to the tightening of the blockade by the Egyptian and Israeli sides and the diesel tax that were raised by the Palestinian Authority in Ramallah threatens a humanitarian catastrophe, whose first victims would be patients and children," the organization warned.
The organization stated that after the third of last July, the Egyptian military authorities closed the Rafah border crossing at the pretext of the security situation in the Sinai and started to demolish the Rafah tunnels used by the Gazans to meet their daily humanitarian needs without providing any alternatives to its arbitrary inhumane measures.
The organization affirmed that the military government in Egypt only opens the Rafah crossing intermittently and for several hours for the travel of certain passengers who have humanitarian conditions, while the Israeli occupation authority opens its crossing for the entry of limited shipments of goods and then closes them suddenly.
"Until this moment, the (Gaza) power station is still out of service completely and the efforts aimed to reduce fuel prices and allow in fuel shipments through the Karam Abu Salem crossing have failed," the organization said.
"The Egyptian authorities also prevent the entry of the whole fuel aid provided by Qatar for Gaza through either Rafah crossing or Karam Abu Salem crossing," it added.
"The shutdown of the power station in addition to the tightening of the blockade by the Egyptian and Israeli sides and the diesel tax that were raised by the Palestinian Authority in Ramallah threatens a humanitarian catastrophe, whose first victims would be patients and children," the organization warned.
14 nov 2013
12 nov 2013
Gaza premier Ismail Haneyya said on Tuesday that his government was working hard to solve the power crisis in Gaza Strip. Haneyya, who was inaugurating a number of projects in the central governorate, said that his government was responsible for solving the crisis and that it was in contact with various concerned parties to solve it.
The premier championed national unity that should rise above all differences and political wrangling in order to defend Jerusalem and national causes.
The premier championed national unity that should rise above all differences and political wrangling in order to defend Jerusalem and national causes.
6 nov 2013
Meanwhile, Kerry announced following his meeting with President Mahmoud Abbas in Bethlehem, that the US will give an additional $75 million aid for infrastructure projects to the Palestinian people.
Kerry also inaugurated a new road in Bethlehem financed by the US Agency for International Development (USAID), Palestinian official news agency WAFA reported.
Kerry also inaugurated a new road in Bethlehem financed by the US Agency for International Development (USAID), Palestinian official news agency WAFA reported.
4 nov 2013
Minister of Economy Dr. Alaa al-Rafati accompanied by Head of the General Union of the Palestinian Industry, Ali al-Hayek and Representative of the Industries Federation, Mohammed al-Mansi have visited on Monday a group of factories in the Gaza Strip.
This visit came under the framework of following-up the industrial process after the closure of the tunnels, the suffocating siege on the Gaza Strip and the scarcity of raw materials and basic equipment needed for factories, such as fuel, and the continuous outage of electricity.
al-Rafati said during a visit to Sharaf’s factory for gas cylinders, which was stopped due to the lack of materials, "Palestinian industry is the backbone of our national economy.”
“The ministry is exerting great efforts to study the industrial reality in Gaza and drawing policies to promote the local products,” He added.
The minister pointed out that a number of decisions taken earlier have contributed to improving the national industry by adopting the policy of import substitution which was implemented at the beginning of this year.
He noted that the Israeli occupation is launching an economic war against Gaza, stressing that the closure of crossings in Gaza has led to untold damage.
This visit came under the framework of following-up the industrial process after the closure of the tunnels, the suffocating siege on the Gaza Strip and the scarcity of raw materials and basic equipment needed for factories, such as fuel, and the continuous outage of electricity.
al-Rafati said during a visit to Sharaf’s factory for gas cylinders, which was stopped due to the lack of materials, "Palestinian industry is the backbone of our national economy.”
“The ministry is exerting great efforts to study the industrial reality in Gaza and drawing policies to promote the local products,” He added.
The minister pointed out that a number of decisions taken earlier have contributed to improving the national industry by adopting the policy of import substitution which was implemented at the beginning of this year.
He noted that the Israeli occupation is launching an economic war against Gaza, stressing that the closure of crossings in Gaza has led to untold damage.
Health minister in the Gaza government Mufid Al-Makhalalaty warned of the serious implications on the health and environmental services after stopping the operation of Gaza's only power plant. The minister warned of a looming humanitarian disaster due to the continued oppressive and illegal Israeli siege imposed on 1.8 million people in the strip.
The besieged Strip suffers an acute power crisis after the only power station has run out of fuel on Friday, leaving Gaza facing up to 12 hours of power cuts per day.
Shutting down of Gaza's sole power plant would cause serious health and environmental problems after the sewage treatment plants stopped working due to lack of fuel, he said.
The crisis led to power cuts of up to 18 hours a day, causing a real catastrophe in the besieged Strip's 14 hospitals and 54 medical centers, particularly emergency departments, intensive care units and operating rooms, nurseries, medical laboratory, radiology and blood banks and all health services in the Gaza Strip, he added.
Health minister confirmed that pumping sewage into the Mediterranean would lead to a real environmental disaster as people swim in the sea and it also affects drinking water as the pollutants could harm the ground water.
The minister called on PA and human rights organizations including the International Committee of the Red Cross and the United Nations and the World Health Organization to intervene immediately to pressure Israeli authorities to allow the entry of the needed fuel quantity to operate the power plant.
The besieged Strip suffers an acute power crisis after the only power station has run out of fuel on Friday, leaving Gaza facing up to 12 hours of power cuts per day.
Shutting down of Gaza's sole power plant would cause serious health and environmental problems after the sewage treatment plants stopped working due to lack of fuel, he said.
The crisis led to power cuts of up to 18 hours a day, causing a real catastrophe in the besieged Strip's 14 hospitals and 54 medical centers, particularly emergency departments, intensive care units and operating rooms, nurseries, medical laboratory, radiology and blood banks and all health services in the Gaza Strip, he added.
Health minister confirmed that pumping sewage into the Mediterranean would lead to a real environmental disaster as people swim in the sea and it also affects drinking water as the pollutants could harm the ground water.
The minister called on PA and human rights organizations including the International Committee of the Red Cross and the United Nations and the World Health Organization to intervene immediately to pressure Israeli authorities to allow the entry of the needed fuel quantity to operate the power plant.
3 nov 2013
Palestinian government in Gaza called on the European Union to clarify its position on the money which has been allocated a few years ago to buy fuel for the Gaza power plant and which is given to the Palestinian Authority in Ramallah. The EU has pledged since 2007 to pay 11 million euros to the Israeli company to supply power plant in Gaza with fuel. At the end of 2009, Ramallah Authority suggested to the European Union to give it this amount of money claiming it will buy fuel from the Israeli company and then convert it to Gaza power plant.
The European Union has agreed to PA's suggestion, but the Authority did not pay for the company, except a little sum of money for once.
The power plant in Gaza needs 500 thousand liters of industrial diesel to work and the price of one liter of diesel is estimated at 1 dollar and a half.
Gaza is suffering from severe shortage of power as its sole power plant stopped working, after running out of fuel.
Dr. Mohamed El-Farra, the Minister of Local Government in Gaza, told Quds Press: "We have heard from sources speaking on behalf of the European Union that they are supporting the electricity sector in Gaza by buying fuel needed to run the power plant, within the budget sent to the authority in Ramallah. So we want the EU to clarify this issue."
He said: "If it is true that the European Union is still paying 11 million euros per month for the authority to support the purchase of fuel for the power plant in Gaza, it means that Gaza’s share is being robbed", and he called on the media to investigate and follow up this issue.
The Minister warned of a humanitarian disaster in the sector of water and sanitation due to continued power outages in Gaza.
"Today, as a result of power outages, the need for diesel in order to run alternative generators increased. Besides, the municipalities do not have diesel to run water and sanitation facilities," he added.
Farra held both the Authority in Ramallah and the European Union responsible for the suffering of the residents of the Gaza Strip, in light of the power outages and the interruption of all vital facilities, and accused the Palestinian Authority in Ramallah of not paying the amount allocated for the purchase of fuel for the power station of the Gaza Strip.
PA in Ramallah has insisted on selling diesel to the Energy Authority in Gaza at a high price of two dollars per liter, which has been refused by Gaza authorities.
The European Union has agreed to PA's suggestion, but the Authority did not pay for the company, except a little sum of money for once.
The power plant in Gaza needs 500 thousand liters of industrial diesel to work and the price of one liter of diesel is estimated at 1 dollar and a half.
Gaza is suffering from severe shortage of power as its sole power plant stopped working, after running out of fuel.
Dr. Mohamed El-Farra, the Minister of Local Government in Gaza, told Quds Press: "We have heard from sources speaking on behalf of the European Union that they are supporting the electricity sector in Gaza by buying fuel needed to run the power plant, within the budget sent to the authority in Ramallah. So we want the EU to clarify this issue."
He said: "If it is true that the European Union is still paying 11 million euros per month for the authority to support the purchase of fuel for the power plant in Gaza, it means that Gaza’s share is being robbed", and he called on the media to investigate and follow up this issue.
The Minister warned of a humanitarian disaster in the sector of water and sanitation due to continued power outages in Gaza.
"Today, as a result of power outages, the need for diesel in order to run alternative generators increased. Besides, the municipalities do not have diesel to run water and sanitation facilities," he added.
Farra held both the Authority in Ramallah and the European Union responsible for the suffering of the residents of the Gaza Strip, in light of the power outages and the interruption of all vital facilities, and accused the Palestinian Authority in Ramallah of not paying the amount allocated for the purchase of fuel for the power station of the Gaza Strip.
PA in Ramallah has insisted on selling diesel to the Energy Authority in Gaza at a high price of two dollars per liter, which has been refused by Gaza authorities.
1 nov 2013
A shortage of fuel halted the production of electricity across the Gaza Strip on Friday, said the energy authority of Hamas which controls the Palestinian enclave.
"We have completely stopped the operation of (Gaza's sole) power plant this morning at 6:00 a.m. because we don't have a single liter of fuel," said Fathi Sheikh Khalil, the authority's deputy chairman.
"We have completely stopped the operation of (Gaza's sole) power plant this morning at 6:00 a.m. because we don't have a single liter of fuel," said Fathi Sheikh Khalil, the authority's deputy chairman.
31 oct 2013
An official source said on Wednesday, Ramallah authority told the Petroleum Authority in Gaza it's refusal to sell fuel for Gaza power plant, at a price was purchased last week. The same source also said that the Petroleum Authority in Gaza paid for the fuel in addition to its tax to reach NIS 4.4 per liter.
It pointed out that the action that Ramallah authority took to add taxes to fuel , would negatively affect the electricity crisis and threaten to stop the plant.
The Electricity Company in Gaza bought industrial fuel via "Karem Abu Salem" crossing to run the power plant.
It pointed out that the action that Ramallah authority took to add taxes to fuel , would negatively affect the electricity crisis and threaten to stop the plant.
The Electricity Company in Gaza bought industrial fuel via "Karem Abu Salem" crossing to run the power plant.
24 oct 2013
Palestinian Central Bureau of Statistics (PCBS) issued in a press release, a report about the Palestinian Registered* External Trade in Goods of August 2013, as follows:
Exports:
Exports decreased in August, 2013 by 13.4% compared to July, 2013 and increased by 3.6% compared to August, 2012 and reached USD 59.4 Million.
Exports to Israel decreased in August, 2013 by 12.8% compared to July, 2013 and represented 91.7% of total exports in August, 2013.
On the other hand exports to other countries decreased by 19.7% during the same period compared to July, 2013.
Imports:
Imports decreased in August 2013 by 7.4% compared to July, 2013. And increased by 7.0% compared to August, 2012 and reached USD 382.0 Million.
Imports from Israel decreased by 6.8% in August 2013 compared to July, 2013 and represented 64.4% of total imports in August 2013.
On the other hand, imports from other countries decreased by 8.6% compared to July, 2013.
Net Trade Balance on Registered Goods:
The trade balance which represents the difference between exports and imports showed a decrease in trade deficit by 6.2% compared to July, 2013. And increased by 7.6% compared to August 2012 and reached USD 322.6 Million.
*Includes actual data received from official sources.
Exports:
Exports decreased in August, 2013 by 13.4% compared to July, 2013 and increased by 3.6% compared to August, 2012 and reached USD 59.4 Million.
Exports to Israel decreased in August, 2013 by 12.8% compared to July, 2013 and represented 91.7% of total exports in August, 2013.
On the other hand exports to other countries decreased by 19.7% during the same period compared to July, 2013.
Imports:
Imports decreased in August 2013 by 7.4% compared to July, 2013. And increased by 7.0% compared to August, 2012 and reached USD 382.0 Million.
Imports from Israel decreased by 6.8% in August 2013 compared to July, 2013 and represented 64.4% of total imports in August 2013.
On the other hand, imports from other countries decreased by 8.6% compared to July, 2013.
Net Trade Balance on Registered Goods:
The trade balance which represents the difference between exports and imports showed a decrease in trade deficit by 6.2% compared to July, 2013. And increased by 7.6% compared to August 2012 and reached USD 322.6 Million.
*Includes actual data received from official sources.
22 oct 2013
The latest World Bank report on the Palestinian economy is clear. It ratifies what the Palestinian position has been for many years now: There is no economic alternative to ending the Israeli occupation of Palestine. It is impossible to reach our full economic potential without ending Israel's occupation.
The report calls for international initiatives and investments to be strategically oriented towards development in so-called "Area C" of the West Bank, including East Jerusalem. Area C makes up over 60 percent of the West Bank, and is home to over 250 Palestinian communities.
As the World Bank report acknowledges, Area C development requires the international community to challenge illegal Israeli restrictions on Palestinian residence, construction, and movement in these areas. Thus far, however, the international community has done little to challenge these restrictions. In fact, the world continues to reward Israel for its illegal policies by increasing its trade with the settlements.
Palestinian entrepreneurs have challenged Israeli restrictions in Area C, defying the risk of huge fines and the destruction of their property. Their steadfastness has yielded an increase in Palestinian products available in our markets. Today, although Israel's control over our borders and customs policy make Palestine a captive market for Israeli products, most of our homes proudly drink Palestinian milk, eat Palestinian pasta and serve Palestinian juices.
But we can't enjoy our own water, nor expand our farms and groves. In the occupied Jordan Valley, Palestinian palm trees are being cut down with the excuse that they are planted in Area C. Meanwhile 40 percent of Israeli dates exported to the European Union are grown in Jordan Valley settlements, whether they explicitly label them as Jordan Valley products or give them a different source of origin.
Israel makes a 550 million euro profit annually from their settlements in the Jordan Valley. The average annual exports from Israeli settlements to the EU is 230 million euros while Palestinian exports to the same markets total only 15 million euros. The solution is not only to buy more Palestinian products and to ban Israeli settlement produce, but to allow Palestine to control its international borders in order to export and import without Israeli restrictions. Accurate labeling of settlement products is a step in the right direction, but it is not enough as a disincentive for Israel's illegal settlement enterprise.
In per capita terms, an Israeli settler receives 100 times more than a Palestinian for their exports. This figure shows that the international community continues to support Israeli settlements, despite claims to the contrary. The worrying statements of the Dutch prime minister and president of the Czech Republic, who have supported delaying the implementation of the guidelines on EU funding for settlement entities and activities, are further proof that some prefer to continue granting Israel impunity instead of taking the wise decisions needed in order to end Israel's occupation of Palestine.
The World Bank Report tackles one important issue for Palestine's present and future which is Area C. Israeli policies of annexation in such areas have led to the worsening of the living conditions of our people, something clearly seen in the Jordan Valley, whose indigenous population has decreased from 250,000 people in 1967 to no more than 70,000 today. But certainly it isn't the only issue that affects the Palestinian economy.
By 2010 we had estimated that 84.9% of our Gross Domestic Product (almost $ 7 billion) goes to the item we termed the "cost of occupation." It does include not only Area C but also the lack of access to our airspace, sea and territorial international borders (compared to the free use Israel makes of them); our electromagnetic sphere, the extra costs of transportation due to the segregation of roads, and the indiscriminate and illegal use made by Israel, including its Tourism Ministry, of our national heritage places, among other items.
In recent years, some international parties have tried to convince the world that solutions begin by removing a roadblock or allowing ketchup and mayonnaise into Gaza. The Israeli government argues that giving Palestinians some work permits and allowing a few trucks into Gaza are "confidence building measures." But what Palestine needs is ending the Israeli occupation, which is the only way for Palestine to reach its full economic potential. No "confidence building measures" will end the theft of Palestinian resources nor the catastrophic social consequences of the Israeli occupation policies.
Freedom for Palestine is the only possible way to achieve a healthy economy, which is an essential condition for a just and lasting peace between Israel and Palestine.
Dr. Muhammad Shtayyeh is Minister in charge of the Palestinian Economic Council for Development and Reconstruction (PECDAR), a member of the Fatah Central Committee and a senior Palestinian negotiator in the current talks with Israel.
This Op-Ed was originally published in Haaretz
The report calls for international initiatives and investments to be strategically oriented towards development in so-called "Area C" of the West Bank, including East Jerusalem. Area C makes up over 60 percent of the West Bank, and is home to over 250 Palestinian communities.
As the World Bank report acknowledges, Area C development requires the international community to challenge illegal Israeli restrictions on Palestinian residence, construction, and movement in these areas. Thus far, however, the international community has done little to challenge these restrictions. In fact, the world continues to reward Israel for its illegal policies by increasing its trade with the settlements.
Palestinian entrepreneurs have challenged Israeli restrictions in Area C, defying the risk of huge fines and the destruction of their property. Their steadfastness has yielded an increase in Palestinian products available in our markets. Today, although Israel's control over our borders and customs policy make Palestine a captive market for Israeli products, most of our homes proudly drink Palestinian milk, eat Palestinian pasta and serve Palestinian juices.
But we can't enjoy our own water, nor expand our farms and groves. In the occupied Jordan Valley, Palestinian palm trees are being cut down with the excuse that they are planted in Area C. Meanwhile 40 percent of Israeli dates exported to the European Union are grown in Jordan Valley settlements, whether they explicitly label them as Jordan Valley products or give them a different source of origin.
Israel makes a 550 million euro profit annually from their settlements in the Jordan Valley. The average annual exports from Israeli settlements to the EU is 230 million euros while Palestinian exports to the same markets total only 15 million euros. The solution is not only to buy more Palestinian products and to ban Israeli settlement produce, but to allow Palestine to control its international borders in order to export and import without Israeli restrictions. Accurate labeling of settlement products is a step in the right direction, but it is not enough as a disincentive for Israel's illegal settlement enterprise.
In per capita terms, an Israeli settler receives 100 times more than a Palestinian for their exports. This figure shows that the international community continues to support Israeli settlements, despite claims to the contrary. The worrying statements of the Dutch prime minister and president of the Czech Republic, who have supported delaying the implementation of the guidelines on EU funding for settlement entities and activities, are further proof that some prefer to continue granting Israel impunity instead of taking the wise decisions needed in order to end Israel's occupation of Palestine.
The World Bank Report tackles one important issue for Palestine's present and future which is Area C. Israeli policies of annexation in such areas have led to the worsening of the living conditions of our people, something clearly seen in the Jordan Valley, whose indigenous population has decreased from 250,000 people in 1967 to no more than 70,000 today. But certainly it isn't the only issue that affects the Palestinian economy.
By 2010 we had estimated that 84.9% of our Gross Domestic Product (almost $ 7 billion) goes to the item we termed the "cost of occupation." It does include not only Area C but also the lack of access to our airspace, sea and territorial international borders (compared to the free use Israel makes of them); our electromagnetic sphere, the extra costs of transportation due to the segregation of roads, and the indiscriminate and illegal use made by Israel, including its Tourism Ministry, of our national heritage places, among other items.
In recent years, some international parties have tried to convince the world that solutions begin by removing a roadblock or allowing ketchup and mayonnaise into Gaza. The Israeli government argues that giving Palestinians some work permits and allowing a few trucks into Gaza are "confidence building measures." But what Palestine needs is ending the Israeli occupation, which is the only way for Palestine to reach its full economic potential. No "confidence building measures" will end the theft of Palestinian resources nor the catastrophic social consequences of the Israeli occupation policies.
Freedom for Palestine is the only possible way to achieve a healthy economy, which is an essential condition for a just and lasting peace between Israel and Palestine.
Dr. Muhammad Shtayyeh is Minister in charge of the Palestinian Economic Council for Development and Reconstruction (PECDAR), a member of the Fatah Central Committee and a senior Palestinian negotiator in the current talks with Israel.
This Op-Ed was originally published in Haaretz
Vegetable prices in the West Bank have risen dramatically in the last few days, and observers say the prices of tomatoes will skyrocket in the near future.
Prices of almost all vegetables are expected to increase rapidly, especially those of potatoes, onions and tomatoes.
The price of a kilogram of tomatoes is expected to surpass 10 shekels soon, even though that amount of money would have bought ten kilograms only a few weeks ago.
In an exclusive interview with Ma'an, Palestinian Minister of Agriculture Walid Assaf predicted that prices would decrease again by mid-November.
He stressed that the reason behind the currently high prices was the cold weather experienced across the West Bank near the end of September, which had affected crops in open fields and had seriously reduced productivity.
Another reason for the current high process, Assaf said, is that open fields in areas of the West Bank controlled by Israel had sustained damages from the cold spell as well.
"The ministry of agriculture does not have any control over areas under Israeli control, and as a result merchants in those areas export tomatoes to Israel. The Palestinian market isn't fully separated from the Israeli market."
The minister also highlighted that there are not enough cold storage facilities for vegetables and fruits. However, he revealed that the ministry planned to build four cold storage facilities, which he expected to be completed by spring 2014.
Prices of almost all vegetables are expected to increase rapidly, especially those of potatoes, onions and tomatoes.
The price of a kilogram of tomatoes is expected to surpass 10 shekels soon, even though that amount of money would have bought ten kilograms only a few weeks ago.
In an exclusive interview with Ma'an, Palestinian Minister of Agriculture Walid Assaf predicted that prices would decrease again by mid-November.
He stressed that the reason behind the currently high prices was the cold weather experienced across the West Bank near the end of September, which had affected crops in open fields and had seriously reduced productivity.
Another reason for the current high process, Assaf said, is that open fields in areas of the West Bank controlled by Israel had sustained damages from the cold spell as well.
"The ministry of agriculture does not have any control over areas under Israeli control, and as a result merchants in those areas export tomatoes to Israel. The Palestinian market isn't fully separated from the Israeli market."
The minister also highlighted that there are not enough cold storage facilities for vegetables and fruits. However, he revealed that the ministry planned to build four cold storage facilities, which he expected to be completed by spring 2014.
14 oct 2013
MP Jamal Khudari, the head of the Popular Committee against the Siege, confirmed that more than one million people in the Gaza Strip are living on aid from international, Arab and Islamic institutions. Khudari stressed in a statement on Sunday that this number is increasing due to the Israeli occupation and the blockade.
He referred to the main causes behind the deterioration of the humanitarian situation in Gaza and the high rates of poverty and unemployment, pointing to the continued occupation since 1967, the blockade imposed since 2006, the restrictions imposed on the movement of people and goods and the prevention of the entry of basic necessities, which affected the economy.
The MP said the Israeli blockade represents a collective punishment, punishable under international law because it deprives nearly two million people from their right to decent life, guaranteed under the international laws and norms.
He stressed that putting an end to the crises in the Gaza Strip requires ending the occupation and the siege.
He referred to the main causes behind the deterioration of the humanitarian situation in Gaza and the high rates of poverty and unemployment, pointing to the continued occupation since 1967, the blockade imposed since 2006, the restrictions imposed on the movement of people and goods and the prevention of the entry of basic necessities, which affected the economy.
The MP said the Israeli blockade represents a collective punishment, punishable under international law because it deprives nearly two million people from their right to decent life, guaranteed under the international laws and norms.
He stressed that putting an end to the crises in the Gaza Strip requires ending the occupation and the siege.
The Palestinian government in the Gaza Strip declared that 10 thousand workers join the ranks of unemployed after preventing the entry of construction materials through the underground tunnels along the Egyptian border. The Director of Public Relations Nabil al-Mabhouh said that 10 thousand workers in the construction sector and 80% of fishermen have become unemployed, in addition to 80% reduction in transportation sector due to the fuel crisis.
He pointed out that the blockade imposed on the Gaza Strip and the demolition of tunnels affected negatively all sectors and increased unemployment rates in the strip.
Al-Mabhouh stressed the need to break the siege imposed on the Gaza Strip, to establish a free trade zone with Egypt, and to facilitate trade movement.
For his part, Nabil Abu Meilq, chairman of the Palestinian Contractors Union, considered the Israeli decision to stop the entry of construction materials into the Gaza Strip as an "economic disaster", rejecting the Israeli pretensions for it.
The Israeli occupation has allowed on 22 September the entry of the construction materials into the Gaza Strip after seven years of being banned, he said, noting that only 70 truckloads of construction materials were allowed in.
The Gaza Strip suffers difficult conditions especially after the Egyptian measures to tighten the siege by demolishing the tunnels along the Egyptian border.
This is an economic disaster that tightens the siege, he said commenting on the Israeli decision.
The lack of stability in the region significantly harms the private sector; suppliers, businessmen, importers, and farmers, he added.
He pointed out that the blockade imposed on the Gaza Strip and the demolition of tunnels affected negatively all sectors and increased unemployment rates in the strip.
Al-Mabhouh stressed the need to break the siege imposed on the Gaza Strip, to establish a free trade zone with Egypt, and to facilitate trade movement.
For his part, Nabil Abu Meilq, chairman of the Palestinian Contractors Union, considered the Israeli decision to stop the entry of construction materials into the Gaza Strip as an "economic disaster", rejecting the Israeli pretensions for it.
The Israeli occupation has allowed on 22 September the entry of the construction materials into the Gaza Strip after seven years of being banned, he said, noting that only 70 truckloads of construction materials were allowed in.
The Gaza Strip suffers difficult conditions especially after the Egyptian measures to tighten the siege by demolishing the tunnels along the Egyptian border.
This is an economic disaster that tightens the siege, he said commenting on the Israeli decision.
The lack of stability in the region significantly harms the private sector; suppliers, businessmen, importers, and farmers, he added.
British Sunday Times reported Sunday that a report published by the European Court, the official institution located in Luxembourg, revealed that one billion Euros in EU aid funds to the Palestinians has been wasted or "lost" due to corruption.
According to the report, between 2008 and 2012, Belgium transferred more than €1.95 billion to the West Bank and Gaza Strip, but Belgium's impact on the way the money was invested and its use was minimal.
The newspaper said that the EU investigators visited sites in the West Bank, east Jerusalem and Gaza, and noticed "significant deficiencies" in the management of aid funds transferred to the Palestinians.
The investigators, according to the newspaper, complained that measures were not taken to reduce serious risks such as "corruption or funds not used for purposes for which they were transferred."
According to the report, between 2008 and 2012, Belgium transferred more than €1.95 billion to the West Bank and Gaza Strip, but Belgium's impact on the way the money was invested and its use was minimal.
The newspaper said that the EU investigators visited sites in the West Bank, east Jerusalem and Gaza, and noticed "significant deficiencies" in the management of aid funds transferred to the Palestinians.
The investigators, according to the newspaper, complained that measures were not taken to reduce serious risks such as "corruption or funds not used for purposes for which they were transferred."
11 oct 2013
The head of the fishermen’s union in the Gaza Strip, Nizar Ayyash, said that only 10% of Gaza's fishermen are working (370 out of 3700 fishermen) as a result of the blockade on the Strip by the Israeli occupation and Egyptian restrictions on the southern side of the border. In a speech during a sit in, organized Thursday by the national committee for ending the siege at the Gaza fishing port, Ayyash talked about Israeli occupation's systematic attacks on Palestinian fishermen in Gaza Sea.
“With the ongoing restrictions on the fishing sector, Gaza's fishermen live a very difficult economic situation, lack of income and suffering because of the Israeli blockade on the Gaza Strip."
Ayyash called on human rights organizations to intervene and protect Palestinian fishermen against Israeli occupation forces’ violations.
He also condemned the Egyptian Navy’s detention of five Palestinian fishermen because they were fishing close to Egyptian national waters, adding: "We never expected an Egyptian court would sentence the fishermen to one year imprisonment as well as a fine of 600 Egyptian Pounds."
“With the ongoing restrictions on the fishing sector, Gaza's fishermen live a very difficult economic situation, lack of income and suffering because of the Israeli blockade on the Gaza Strip."
Ayyash called on human rights organizations to intervene and protect Palestinian fishermen against Israeli occupation forces’ violations.
He also condemned the Egyptian Navy’s detention of five Palestinian fishermen because they were fishing close to Egyptian national waters, adding: "We never expected an Egyptian court would sentence the fishermen to one year imprisonment as well as a fine of 600 Egyptian Pounds."
10 oct 2013
The economic situation in the besieged Gaza Strip has been deteriorating following the destruction by Egypt of hundreds of Gaza tunnels.
Press TV - According to reports, the destruction of underground tunnels that served as a lifeline to Gaza has caused a shortage of essential goods in the coastal enclave and hampered daily life.
Permanent Egyptian’s government has demolished nearly 800 tunnels along its border with Gaza since January this year, preventing the people in Gaza from accessing most of their basic goods like food, fuel, and construction materials.
Several Palestinians reportedly lost their lives as they were caught up in the tunnels during destruction operations. Some 1.7 million people in Gaza have been living under Israel’s illegal siege since 2007, a situation that has made them desperately dependent on goods coming through the tunnels.
Several human rights organizations and civil groups have criticized the Egyptian army for preventing the people in Gaza from accessing their basic goods.
The Palestinian Non-Governmental Organizations Network (PNGO), which represents more than 130 Palestinian civil society organizations, has called on the international community to end the “continuous Israeli siege.”
“Gaza is recently suffering from a catastrophic condition due to the continuous Israeli siege for the seventh year. We are calling on the international community in order to act immediately to end the siege,” Amjad Shawa, a PNGO member, said in an interview with Press TV.
Press TV - According to reports, the destruction of underground tunnels that served as a lifeline to Gaza has caused a shortage of essential goods in the coastal enclave and hampered daily life.
Permanent Egyptian’s government has demolished nearly 800 tunnels along its border with Gaza since January this year, preventing the people in Gaza from accessing most of their basic goods like food, fuel, and construction materials.
Several Palestinians reportedly lost their lives as they were caught up in the tunnels during destruction operations. Some 1.7 million people in Gaza have been living under Israel’s illegal siege since 2007, a situation that has made them desperately dependent on goods coming through the tunnels.
Several human rights organizations and civil groups have criticized the Egyptian army for preventing the people in Gaza from accessing their basic goods.
The Palestinian Non-Governmental Organizations Network (PNGO), which represents more than 130 Palestinian civil society organizations, has called on the international community to end the “continuous Israeli siege.”
“Gaza is recently suffering from a catastrophic condition due to the continuous Israeli siege for the seventh year. We are calling on the international community in order to act immediately to end the siege,” Amjad Shawa, a PNGO member, said in an interview with Press TV.
The results of the surveys issued by the Palestinian Central Bureau of Statistics (PCBS) show that there are 121,264 non-agricultural enterprises in private and non-governmental operating in the economic activities covered in Palestine.
These economic activities are distributed as follows: internal trade activities 57.1%, services activities 27.8%, industrial activities 13.4%, transport and storage activities 0.7%, construction activities 0.5%, and information and communications activities 0.5%.
58.9% of employed persons were waged employees: 76.5% of them male and 23.5% female
During 2012, there were 379,703 workers employed in these economic activities distributed by economic activity as follows: internal trade activities 40.0%, services activities 32.7%, industrial activities 20.7%, construction activities 3.0%, information and communications activities 1.8%, and transport and storage activities 1.8%.
The results indicate that the value of output of enterprises in Palestine was USD 10,063.8 million distributed by economic activity as follows: industrial activities 37.7%, internal trade activities 28.5%, services activities 18.0%, information and communications activities 7.4%, construction activities 6.7%, and transport and storage activities 1.7%.
The gross value added in non-agricultural enterprises in the Palestinian Territory was USD 6,462.8 million distributed by economic activity as follows: internal trade activities 36.1%, industrial activities 26.5%, services activities 21.3%, information and communications activities 9.8%, construction activities 4.7%, and transport and storage activities 1.6%.
These economic activities are distributed as follows: internal trade activities 57.1%, services activities 27.8%, industrial activities 13.4%, transport and storage activities 0.7%, construction activities 0.5%, and information and communications activities 0.5%.
58.9% of employed persons were waged employees: 76.5% of them male and 23.5% female
During 2012, there were 379,703 workers employed in these economic activities distributed by economic activity as follows: internal trade activities 40.0%, services activities 32.7%, industrial activities 20.7%, construction activities 3.0%, information and communications activities 1.8%, and transport and storage activities 1.8%.
The results indicate that the value of output of enterprises in Palestine was USD 10,063.8 million distributed by economic activity as follows: industrial activities 37.7%, internal trade activities 28.5%, services activities 18.0%, information and communications activities 7.4%, construction activities 6.7%, and transport and storage activities 1.7%.
The gross value added in non-agricultural enterprises in the Palestinian Territory was USD 6,462.8 million distributed by economic activity as follows: internal trade activities 36.1%, industrial activities 26.5%, services activities 21.3%, information and communications activities 9.8%, construction activities 4.7%, and transport and storage activities 1.6%.
9 oct 2013
Hamas is struggling to meet its payroll in the Gaza Strip, where income from taxes has been badly hit since neighboring Egypt started destroying a network of tunnels used to smuggle food, fuel and weapons into the Islamist-run enclave.
The crisis means that Gaza's thousands of civil servants may not receive their full salaries in time for an important Muslim holiday next week.
Egypt, which accuses Hamas of aiding Muslim militants in the lawless Sinai desert, has been waging a campaign to destroy the smuggling tunnels that delivered weapons and other goods to the Gaza Strip, which is partially blockaded by Israel.
Hamas, which denies the Egyptian allegations, taxes the traffic through the tunnels - a money stream that has now virtually run dry.
Last month, the Hamas government paid only 77 percent of its $25 million August payroll for Gaza's 50,000 civil servants.
It said on Tuesday it would make a special payment of 1,000 shekels ($280) to the employees on Thursday before the Eid al-Adha holiday. There is still no word on whether full September salaries will be paid this month.
"What is supposed to be a day of joy and happiness would turn into a nightmare, a disaster, because we cannot afford to feel happy," said 47-year-old public servant Mohammed Khalil.
During Eid al-Adha, Muslims traditionally slaughter sheep or cattle and share the meat with the poor. Many parents buy new clothes for their children.
Khalil, a father of six, told Reuters he received most of his 1,700 shekel salary for August, but it was not enough to enable him to pay his electricity or water bills.
Uneasy relationship
Hamas, an offshoot of the Muslim Brotherhood, has governed Gaza since 2007 and has an uneasy relationship with Egypt's new army-backed leadership, which toppled the elected Islamist president, Mohamed Morsi, a Hamas ally, in July.
It is unclear exactly how much money Hamas used to take in from tunnel traffic. Economists in the Gaza Strip said the income covered 70 percent of the government's monthly budget. Hamas officials put the figure at 40 percent.
Some 1 million liters of gas used to reach Gaza daily through the tunnels from Egypt. Hamas collected 1.60 shekels per liter. Cement once came through at a rate of 3,000 tons a day. Hamas's cut was 20 shekels per tonne, according to tunnel operators and local economists.
Ala al-Rafati, the Hamas-appointed minister of the economy, said up to 90 percent of the tunnels had now been destroyed by the Egyptian army and those still open were not operating fully. He put the losses to the Gaza economy since June at $460 million.
He added that the Gaza government's annual budget was more than $700 million, with $260 million devoted to running costs.
Hamas has also been hit by a downturn in its relations with its main backer, Iran, which used to provide it with arms and funds estimated by diplomats to total some $250 million a year.
Relations became strained after Hamas turned against Tehran's ally, President Bashar Assad, in Syria's civil war, and Iran's financial largesse has shriveled, diplomats believe.
Hamas, which is shunned by the West over its refusal to renounce violence and recognize Israel's right to exist, weathered an economic crisis in 2007 when the group seized control of the Gaza Strip from forces loyal to Western-backed Palestinian Authority President Mahmoud Abbas.
Israel tightened its blockade at the time, but the tunnel business flourished, enabling Hamas to fill its coffers.
Since 2010, Israel has eased internationally criticized economic restrictions on the territory and recently allowed the entry of cement and steel for private construction for the first time since 2007. Palestinians said it was not enough to meet the needs of the Gaza Strip's 1.8 million people.
No taxes
Cairo's closure of the tunnels over the last three months has caused prices to spike and production to drop at factories dependent on raw materials from Egypt.
Gaza economist Maher al-Tabaa' said that for Hamas, this translated into "no taxes on smuggled goods and may soon mean no taxes on locally manufactured products".
Abdel-Salam Seyam, secretary general of the Hamas government, acknowledged the squeeze on its financial resources, but voiced confidence that it would overcome the crisis.
"We have lived through worse. This problem isn't any more difficult than it was in the past and will hopefully be resolved soon," he told Reuters.
Some Middle East states are continuing to help Gaza through construction program, with aid either coming directly in the form of building materials or via funds to the United Nations. For example, Saudi Arabia is building 1,700 housing units in southern Gaza, while Qatar is paying for a major road upgrade.
Neither country is believed to give Hamas cash assistance, although private donors in the Gulf are still helping.
An additional problem for Hamas is how to get its hands on foreign donations. Bank transfers have long been difficult because only one local bank works with Hamas and all electronic transactions are carefully monitored abroad.
Therefore, much of the financial aid from countries like Iran, some diplomats and analysts said, used to arrive stuffed into suitcases via the tunnels. That lifeline has been squeezed by the Egyptian clamp-down.
"I don't know whether I can blame the Gaza government. Where could it bring in money from? The sky?" said Abu Mohammed, a civil servant.
The crisis means that Gaza's thousands of civil servants may not receive their full salaries in time for an important Muslim holiday next week.
Egypt, which accuses Hamas of aiding Muslim militants in the lawless Sinai desert, has been waging a campaign to destroy the smuggling tunnels that delivered weapons and other goods to the Gaza Strip, which is partially blockaded by Israel.
Hamas, which denies the Egyptian allegations, taxes the traffic through the tunnels - a money stream that has now virtually run dry.
Last month, the Hamas government paid only 77 percent of its $25 million August payroll for Gaza's 50,000 civil servants.
It said on Tuesday it would make a special payment of 1,000 shekels ($280) to the employees on Thursday before the Eid al-Adha holiday. There is still no word on whether full September salaries will be paid this month.
"What is supposed to be a day of joy and happiness would turn into a nightmare, a disaster, because we cannot afford to feel happy," said 47-year-old public servant Mohammed Khalil.
During Eid al-Adha, Muslims traditionally slaughter sheep or cattle and share the meat with the poor. Many parents buy new clothes for their children.
Khalil, a father of six, told Reuters he received most of his 1,700 shekel salary for August, but it was not enough to enable him to pay his electricity or water bills.
Uneasy relationship
Hamas, an offshoot of the Muslim Brotherhood, has governed Gaza since 2007 and has an uneasy relationship with Egypt's new army-backed leadership, which toppled the elected Islamist president, Mohamed Morsi, a Hamas ally, in July.
It is unclear exactly how much money Hamas used to take in from tunnel traffic. Economists in the Gaza Strip said the income covered 70 percent of the government's monthly budget. Hamas officials put the figure at 40 percent.
Some 1 million liters of gas used to reach Gaza daily through the tunnels from Egypt. Hamas collected 1.60 shekels per liter. Cement once came through at a rate of 3,000 tons a day. Hamas's cut was 20 shekels per tonne, according to tunnel operators and local economists.
Ala al-Rafati, the Hamas-appointed minister of the economy, said up to 90 percent of the tunnels had now been destroyed by the Egyptian army and those still open were not operating fully. He put the losses to the Gaza economy since June at $460 million.
He added that the Gaza government's annual budget was more than $700 million, with $260 million devoted to running costs.
Hamas has also been hit by a downturn in its relations with its main backer, Iran, which used to provide it with arms and funds estimated by diplomats to total some $250 million a year.
Relations became strained after Hamas turned against Tehran's ally, President Bashar Assad, in Syria's civil war, and Iran's financial largesse has shriveled, diplomats believe.
Hamas, which is shunned by the West over its refusal to renounce violence and recognize Israel's right to exist, weathered an economic crisis in 2007 when the group seized control of the Gaza Strip from forces loyal to Western-backed Palestinian Authority President Mahmoud Abbas.
Israel tightened its blockade at the time, but the tunnel business flourished, enabling Hamas to fill its coffers.
Since 2010, Israel has eased internationally criticized economic restrictions on the territory and recently allowed the entry of cement and steel for private construction for the first time since 2007. Palestinians said it was not enough to meet the needs of the Gaza Strip's 1.8 million people.
No taxes
Cairo's closure of the tunnels over the last three months has caused prices to spike and production to drop at factories dependent on raw materials from Egypt.
Gaza economist Maher al-Tabaa' said that for Hamas, this translated into "no taxes on smuggled goods and may soon mean no taxes on locally manufactured products".
Abdel-Salam Seyam, secretary general of the Hamas government, acknowledged the squeeze on its financial resources, but voiced confidence that it would overcome the crisis.
"We have lived through worse. This problem isn't any more difficult than it was in the past and will hopefully be resolved soon," he told Reuters.
Some Middle East states are continuing to help Gaza through construction program, with aid either coming directly in the form of building materials or via funds to the United Nations. For example, Saudi Arabia is building 1,700 housing units in southern Gaza, while Qatar is paying for a major road upgrade.
Neither country is believed to give Hamas cash assistance, although private donors in the Gulf are still helping.
An additional problem for Hamas is how to get its hands on foreign donations. Bank transfers have long been difficult because only one local bank works with Hamas and all electronic transactions are carefully monitored abroad.
Therefore, much of the financial aid from countries like Iran, some diplomats and analysts said, used to arrive stuffed into suitcases via the tunnels. That lifeline has been squeezed by the Egyptian clamp-down.
"I don't know whether I can blame the Gaza government. Where could it bring in money from? The sky?" said Abu Mohammed, a civil servant.
8 oct 2013
The Palestinian ministry of economy in Gaza said the sharp decline in the work of tunnels in the Rafah border crossing after most of them were destroyed by the Egyptian army caused gross domestic product (GDP) losses of more than 230 million dollars per month. This came during a news conference organized on Monday by the Palestinian institute for communication and development in Gaza.
Minister of economy Alaa Rafati stated that Egypt's restrictions at Rafah crossing and its war on Gaza tunnels led to a rise in the poverty and unemployment rates and created severe economic difficulties affecting all sectors in Gaza.
Rafati warned that the GDP rate in Gaza might decline further due to the continued closure of Rafah tunnels, reiterating the government's readiness to close all tunnels immediately if Egypt provided an alternative and opened its Rafah border terminal before goods and raw materials.
Minister of economy Alaa Rafati stated that Egypt's restrictions at Rafah crossing and its war on Gaza tunnels led to a rise in the poverty and unemployment rates and created severe economic difficulties affecting all sectors in Gaza.
Rafati warned that the GDP rate in Gaza might decline further due to the continued closure of Rafah tunnels, reiterating the government's readiness to close all tunnels immediately if Egypt provided an alternative and opened its Rafah border terminal before goods and raw materials.
More than half the land in the West Bank, much of it agricultural and resource rich, is inaccessible to Palestinians, The World Bank revealed in a report on Tuesday.
The is the first comprehensive study of the potential impact of this 'withheld land,' on the Palestinian economy. The currents loss to the Palestinian economy at about US $3.4 billion, annually.
Area C constitutes 61% of the West Bank and is the only contiguous land connecting 227 smaller separate and heavily residential areas.
The 1993 Oslo Peace Accords stipulated that Area C be gradually transferred to the Palestinian Authority (PA) by 1998. This transfer has never taken place.
"The densely populated urban areas of the West Bank usually command the most attention," said Mariam Sherman, outgoing Country Director for the West Bank and Gaza. "But unleashing the potential from that 'withheld land' -- access to which is currently constrained by layers of restrictions -- and allowing Palestinians to put these resources to work, would provide whole new areas of economic activity and set the economy on the path to sustainable growth."
With growth of approximately 6% annually needed to absorb new entrants to the labor market, let alone making a dent in the soaring rate of youth unemployment, urgent attention is needed to find ways to grow the economy and create jobs. A vital economy is essential for citizen well-being, social stability and building confidence to underpin the challenging political negotiations. However, the Palestinian economy, which currently relies on donor financed consumption and suffers from ongoing stagnation of the private sector, is unsustainable. The report estimates that if businesses and farms were permitted to develop in Area C, this would add as much as 35% to the Palestinian GDP.
Freeing economic activity in Area C would have a particularly high impact on the development of businesses in agriculture and Dead Sea minerals exploitation, stone mining and quarrying, construction, tourism, and telecommunications. Other sectors would be able to benefit from improvements in the quality and cost of infrastructure and increased demand for goods and services.
The volume of increased economic activity would greatly improve the PA's fiscal position. It is estimated that government revenues would increase by US $800 million, which would cut the fiscal deficit by half, hence reduce the need for donor support, and reduce unemployment and poverty rates.
"Access to Area C will go a long way to solving Palestinian economic problems," said Sherman. "The alternative is bleak. Without the ability to utilize the potential of Area C, the economic space will remain fragmented and stunted. Lifting multiple restrictions could transform the economy and substantially improve prospects for sustained growth."
Palestinian GDP will expand if Israel lifts limits: World Bank
The Palestinian economy could expand by over a third if Israel were to lift its restrictions on about 60 percent of the West Bank that it controls, the World Bank said in a report published on Tuesday. "More than half the land in the West Bank, much of it agricultural and resource rich, is inaccessible to Palestinians," said the World Bank.
"The first comprehensive study of the potential impact of this 'restricted land,' released by the World Bank today, sets the current loss to the Palestinian economy at about US$3.4 billion (2.5 billion euros)," it added.
If businesses and farms were allowed to develop in the territory, "this would add as much as 35 percent to the Palestinian GDP", it estimated.
The World Bank report came about a fortnight after the Middle East Quartet published a plan to revive the ailing Palestinian economy, in an effort to support peace negotiations between the Israelis and Palestinians.
The three-year "Palestinian Economic Initiative" would focus on private sector growth. It identified eight key sectors targeted for development, including construction and building materials, agriculture, energy, water, and tourism.
The International Monetary Fund has estimated that the Palestinian GDP growth would slow from 11 percent in 2011 and 5.9 percent in 2012 to 4.5 percent by the end of this year.
The is the first comprehensive study of the potential impact of this 'withheld land,' on the Palestinian economy. The currents loss to the Palestinian economy at about US $3.4 billion, annually.
Area C constitutes 61% of the West Bank and is the only contiguous land connecting 227 smaller separate and heavily residential areas.
The 1993 Oslo Peace Accords stipulated that Area C be gradually transferred to the Palestinian Authority (PA) by 1998. This transfer has never taken place.
"The densely populated urban areas of the West Bank usually command the most attention," said Mariam Sherman, outgoing Country Director for the West Bank and Gaza. "But unleashing the potential from that 'withheld land' -- access to which is currently constrained by layers of restrictions -- and allowing Palestinians to put these resources to work, would provide whole new areas of economic activity and set the economy on the path to sustainable growth."
With growth of approximately 6% annually needed to absorb new entrants to the labor market, let alone making a dent in the soaring rate of youth unemployment, urgent attention is needed to find ways to grow the economy and create jobs. A vital economy is essential for citizen well-being, social stability and building confidence to underpin the challenging political negotiations. However, the Palestinian economy, which currently relies on donor financed consumption and suffers from ongoing stagnation of the private sector, is unsustainable. The report estimates that if businesses and farms were permitted to develop in Area C, this would add as much as 35% to the Palestinian GDP.
Freeing economic activity in Area C would have a particularly high impact on the development of businesses in agriculture and Dead Sea minerals exploitation, stone mining and quarrying, construction, tourism, and telecommunications. Other sectors would be able to benefit from improvements in the quality and cost of infrastructure and increased demand for goods and services.
The volume of increased economic activity would greatly improve the PA's fiscal position. It is estimated that government revenues would increase by US $800 million, which would cut the fiscal deficit by half, hence reduce the need for donor support, and reduce unemployment and poverty rates.
"Access to Area C will go a long way to solving Palestinian economic problems," said Sherman. "The alternative is bleak. Without the ability to utilize the potential of Area C, the economic space will remain fragmented and stunted. Lifting multiple restrictions could transform the economy and substantially improve prospects for sustained growth."
Palestinian GDP will expand if Israel lifts limits: World Bank
The Palestinian economy could expand by over a third if Israel were to lift its restrictions on about 60 percent of the West Bank that it controls, the World Bank said in a report published on Tuesday. "More than half the land in the West Bank, much of it agricultural and resource rich, is inaccessible to Palestinians," said the World Bank.
"The first comprehensive study of the potential impact of this 'restricted land,' released by the World Bank today, sets the current loss to the Palestinian economy at about US$3.4 billion (2.5 billion euros)," it added.
If businesses and farms were allowed to develop in the territory, "this would add as much as 35 percent to the Palestinian GDP", it estimated.
The World Bank report came about a fortnight after the Middle East Quartet published a plan to revive the ailing Palestinian economy, in an effort to support peace negotiations between the Israelis and Palestinians.
The three-year "Palestinian Economic Initiative" would focus on private sector growth. It identified eight key sectors targeted for development, including construction and building materials, agriculture, energy, water, and tourism.
The International Monetary Fund has estimated that the Palestinian GDP growth would slow from 11 percent in 2011 and 5.9 percent in 2012 to 4.5 percent by the end of this year.