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[...]... Thirdly, aid andreform without access are unlikely to revive the Palestinian economy Intertwined in this issue is the important matter of Israel’s security concerns, and its legitimate need to undertake actions to that end However, overwhelming evidence suggests that the current restrictions correlate primarily to settlement locations and expansions 11 PalestinianEconomicProspects:Aid,Accessand Reform. .. comprehensive undertaking towards the reversal of the course of the Palestinian economy 13 PalestinianEconomicProspects:Aid,AccessandReform Recent Developments and Prospects Recent Events 4 The months since the May AHLC have witnessed some important milestones in reform, security andaccess In Gaza, a ‘Tahdi’ah’ (calm) between Israel and Hamas was activated on June 19th, 2008 Since then, as a general... side, it includes the Ministries of National Economy, Finance, Tourism and Agriculture On the Private Sector side, it includes the Private Sector Coordinating Council 17 PalestinianEconomicProspects:Aid,AccessandReformEconomic Developments 12 At the Paris Conference in December 2007, the PA unveiled the PalestinianReformand Development Plan (PRDP) which relied on growth of about 3.5% in the... first half of 2007 19 PalestinianEconomicProspects:Aid,AccessandReform it fell from 44% in 2007 to 42.3% in the first quarter of 2008, and from 38% to 37.5% in Gaza Adding discouraged workers would increase the unemployment rate to 25.7% in the West Bank and 35.5% in Gaza.12 Figure 2: Unemployment in the West Bank and Gaza Source: Palestinian Central Bureau of Statistics 18 Palestinian unemployment... West Bank and Gaza” World Bank, Draft Health Policy Report August, 2008 , 17 Near East Consulting, “Depression in the Occupied Palestinian Territories,” Sept 2006 18 PCBS, Labor Force Survey, December 2007 19 PCBS, Palestinian Youth: Facts and Figures,” 2001 20 PCBS, «Youth in Palestinian Territory, Statistical Indicators» 12 August, 2008 21 PalestinianEconomicProspects:Aid,AccessandReform The... obstacle to Palestinianeconomic development, and one whose resolution is equally in the domain of the authorities in Gaza 46 International Crisis Group, July 2008 33 PalestinianEconomicProspects:Aid,AccessandReform Parallel Actions by Donors 49 Until the end of August 2008, donors had provided approximately $1.2 billion in recurrent budget support This has supplemented the PA’s tax and clearance... Recent Developments and Prospects students, out of Gaza; inflows of currency to maintain banking operations; facilitation of all donor projects providing basic services, particularly water and sanitation; and extension of the fishing zone to at least 12 nautical miles As of the time of this report, none of these requirements have been met 27 PalestinianEconomicProspects:Aid,AccessandReform Progress... customer duediligence, investigating etc It should also be noted that the Palestinian Monetary Authority is not a member of any FATF style regional body.” 31 PalestinianEconomicProspects:Aid,AccessandReform 45 As mentioned earlier, the PA has also carried out initial steps towards enhanced security in the Palestinian towns and cities in the West Bank under its control While still at the early stages... been constructed and another 9% is under construction About 87% of the route runs inside the West Bank and East Jerusalem, isolating communities and separating tens of thousands of people from services, their lands and livelihoods Despite the commitments under the Road Map and at Annapolis, Israeli settlements continue to expand and very few outposts have been removed An Analysis of the Economic Restrictions... has not allowed any students out via the shuttles 25 PalestinianEconomicProspects:Aid,AccessandReform per day.37 The daily averages of truckloads through Sufa and Karni have increased, but remain well-below the daily average of 450 truckloads in January 2007.38 Lastly, the Rafah Crossing with Egypt, regarded as a potential trade route for the Palestinian economy, has been closed even for passengers . 22
nd
, 2008
Palestinian Economic Prospects: Aid, Access and Reform
2
Acronyms
AHLC Ad-Hoc Liaison Committee
AMA Agreement on Movement and Access
CMWU Coastal.
the course of the Palestinian economy.
Introduction
Palestinian Economic Prospects: Aid, Access and Reform
14
Recent Developments and Prospects
Recent