Publication: Stagnation or Revival : Israeli Disengagement and Palestinian Economic Prospects
Loading...
Published
2004-12
ISSN
Date
2013-07-09
Author(s)
Editor(s)
Abstract
The World Bank's June 23 report, "Disengagement, the Palestinian Economy and the Settlements," warns of the potential disintegration of the Palestinian economy under the sustained pressures of conflict and Israeli closure policies--a situation which is potentially ruinous for both Palestinians and Israelis. Currently there is hope that the Israeli and Palestinian governments are once again ready to discuss their shared future. At this juncture, it is vital that policy-makers focus on stabilizing and reviving the economy as part of any new political process. While money, and in particular donor money, has an important role to play, the underlying causes of economic decline need to be addressed. For a recovery to take place, the Government of Israel needs to roll back the system of restrictions on the movement of people and goods imposed since the beginning of the intifada - it is these various closure measures that are the proximate cause of four years of Palestinian economic distress. The Government of Israel has given encouraging signs of a willingness to reform the management of border gateways, to enable a much faster and more reliable throughput of cargo and people. For its part, the Palestinian Authority faces two sets of challenges if it is to play its part in bringing about revival. First is the need to demonstrate strong commitment to security reform, politically risky though this may be. The PA also needs to reinvigorate its program of governance reforms in order to create an internal environment more attractive to private investors. Chapter Six lays out an agenda of actions that the Bank believes would lay the basis for economic regeneration. It is further proposed that the donor community track progress by the parties in tackling these key preconditions for economic revival. If significant progress is made against a set of agreed indicators, a major new donor effort would then be justified - and a donor pledging conference should be called.
Link to Data Set
Citation
“World Bank. 2004. Stagnation or Revival : Israeli Disengagement and Palestinian Economic Prospects. © World Bank. http://hdl.handle.net/10986/14409 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Related items
Showing items related by metadata.
Publication Disengagement, the Palestinian Economy and the Settlements(Washington, DC, 2004-06-23)This report stresses that the deep economic crisis in the West Bank and Gaza threatens to impoverish and alienate a generation of young Palestinians. Moreover, today's economic crisis has been caused by restrictions on the movement of Palestinian people and goods, or 'closures', which the Government of Israel (GOI) regards as essential to protecting Israeli citizens from attacks by militants. Without a major reform of the closure regime, however, the Palestinian economy will not revive and Israel's security gains may not be sustainable. The report adds that Israel's Disengagement Plan of June 6 will have very little impact on the Palestinian economy and Palestinian livelihoods, since it only proposes a limited easing of closure. An easing of closures alone, though, will not attract investors back to the Palestinian economy. The review opines that with a freeing-up of the constraints on economic activity and committed Palestinian reform, an additional major donor effort would make a difference - it would enable the Palestinian economy to turn the corner. However, the alternative to this is stark. At the wrong end of the spectrum of possible outcomes is a Palestinian economy with unemployment levels of over 35 percent by 2006, and with poverty afflicting upwards of 55 and 70 percent in Gaza. The study points out that as for the settlement assets that Israel will leave behind, those in Gaza have considerable economic value, and in time can make a significant contribution - provided that Gaza's borders are opened for trade. Prospects for economic recovery will be enhanced if the US and the EU give adequate preference to Palestinian products to help boost exports.Publication Corridor Transport Observatory Guidelines(World Bank, Washington, DC, 2013-11)The Northern Corridor, connecting East Africa to the World through the port of Mombasa, is one of the oldest corridor authorities in Africa, as it was established in 1985. Throughout its years of existence, it has been a source of ideas and knowledge that contributed to the thinking on trade facilitation. To a large extent, it is the birthplace of the concept of corridor transport observatory, and through successive models and revisions, it helped shape what transport observatories are. Transport Observatories emerged as the result of the efforts made over the years to address the specific challenges faced by landlocked developing countries. Most of these countries rely heavily on overseas markets as outlets for their productions and as source for their imports, but for that, they must transit through a coastal country. They are at a disadvantage when it comes to competing on equal terms with other economies for integrating into the world market. The handicaps attached to that remoteness are well known and many: a longer time to import or export, a time rarely predictable, higher costs, with sometimes a double toll when input into production must also be imported. Moreover, little can be done by the landlocked countries alone to improve the conditions of crossing transit countries. Indeed, transit trade flows may even be considered as a nuisance or even a threat when similar economies are competing for similar markets.Publication Cambodia Trade Corridor Performance Assessment(Phnom Penh, 2014-04)The study found that logistics costs are high due to transshipment costs and various forms of payments. Many of these payments are imposed by the private sector with little or no transparency on how or where the costs are incurred. International trade corridors in Cambodia therefore perform well in terms of time but not cost. However, the corridors with transshipment have higher costs than the national corridor between Phnom Penh and Sihanoukville or the river corridor to the port of Cai Mep in Vietnam. Large shippers and international firms prefer to use several sub-contractors to make logistics arrangements so they do not have to coordinate what can be fairly complex and challenging arrangements for shipments. Intermediation in logistics is largely carried out by local agencies, leading to high intermediation costs. The main reason for the high intermediation cost is the prevalence and wide acceptance of facilitation fees as inducements for fast clearance and processing. Facilitation fees, largely informal, contribute to the high costs of logistics. Intermediaries, mostly forwarders and brokers, play a key role in collecting these payments. However, payment of such fees is clouded by lack of transparency. One of the main challenges is how to deal with informal payments in logistics in Cambodia. Another contributor to high costs is private sector capacity in the provision of logistics services, which is still low. Most of the truck fl eet is operated by family-run businesses owning a few trucks. Trucks are generally old which contributes also to the lack of appetite to operate across borders and at the same time compromises the feasibility of developing an effective transit system.Publication Review of Cost of Compliance with the New International Freight Transport Security Requirements : Consolidated Report of the Investigations Carried Out in Ports in the Africa, Europe and Central Asia, and Latin America and Caribbean Regions(World Bank, Washington, DC, 2008-02)Without transport there is no economic development and, in a reciprocal conclusion, the more efficient transport is, the better is the development. Bearing in mind that more than 90 percent of the world trade in tons per year is transported by sea and against the background of increasing ship sizes (especially in the container trade) and continuously growing globalization, the requirements for adequate and secure port facilities and the resulting logistics challenges are accelerating worldwide. The International Ship and Port Facility Security Code (ISPS code) is a comprehensive set of measures to enhance the security of ships and port facilities and came into force on the July 1, 2004. The ISPS code is implemented through chapter XI-2 special measures to enhance maritime security in the International Convention for the Safety of Life at Sea (SOLAS). The code has two parts, one mandatory (part A) and one recommendatory (part B). Compliance is mandatory for the 148 contracting parties to SOLAS; detailed implementation of the code is a matter for the individual national governments. The introduction of the ISPS Code has led to many questions and misunderstandings. The code does not, as will have been useful, prescribe in exact terms and data what port facility and port managers have to do or provide to ensure that they are compliant. Part A of the ISPS code actually is a type of questionnaire that asks questions about security items, but then stops short of giving exact and uniform instructions as to how the specific measures can be established. A simple example is the fencing of the port facility. The ISPS code describes that the port facility has to be fenced adequately so as to prevent illegal intruders from entering the facility. But the code does not describe the type of fence, its height and so on. This has led to situations in which a port authority considered its fence adequate, but found out later that other entities, such as security consultants or the United States (US) Coast Guard, did not fully agree with this, and sometimes even not at all. The ISO (International Organization for Standardization) has made an attempt to translate the ISPS Code in a type of handbook, but the result in fact was another questionnaire.Publication Trade and Transport Facilitation in South Asia : Systems in Transition, Volume 2. Annexes(Washington, DC, 2008-06-23)Over the past few decades, the World trading system has become increasingly more open. Tariff rates have been reduced and quantitative restrictions (quotas) have been progressively eliminated, e.g. the Multi-Fiber Agreement (MFA). Most countries have adopted more outward-looking economic policies, seeking to increase growth and employment through expanding exports. Such outward looking policies have even been adopted by countries which previously pursued policies based on import substitution as in South Asia. Protective trade restrictions still persist, but tend to be in terms of more subtle non-tariff barriers (such as sanitary or phyto-sanitary standards), though anti-dumping measures and temporary quantity restrictions are still used by many countries to shield domestic producers. Trade regulations no longer solely attempt to protect domestic producers; their scope has extended to cover the need for enhanced security and the desire for greater consumer protection through the traceability of the production chain for many agricultural products. Intense competition compels firms to reduce costs throughout their manufacturing and distribution processes. Outsourcing to lower cost firms and countries has been one major source of cost reduction, reduced inventory costs through just-in-time manufacturing, and distribution systems has been another. Both are predicated on efficient, reliable and low-cost supply chains. With the worldwide fall in tariff levels, the efficiency of supply chains and the associated logistics costs are becoming core determinants of the competitiveness of both firms and countries. They may also influence the destination of inward direct investment; many countries can offer low labor costs and tax incentives, fewer can offer quick, efficient, reliable, and low cost logistics.
Users also downloaded
Showing related downloaded files
Publication Guinea-Bissau Country Climate and Development Report(Washington, DC: World Bank, 2024-10-23)Guinea-Bissau is endowed with a wealth of natural resources, with the highest natural capital per capita in West Africa (US3,874 dollars per capita), which could be leveraged for sustainable and resilient growth. However, Guinea-Bissau faces significant development hurdles, such as high poverty rates, political instability, and economic challenges, including an over-reliance on cashew nuts. Rural poverty has increased, and the nation's infrastructure, education, and health care systems are underdeveloped. Climate change poses a severe threat, potentially impacting agriculture, fisheries, and infrastructure. Without adaptation, it could lead to a significant cut in real GDP per capita (minus 7.3 percent by 2050) and increase in poverty (with up to over 200,000 additional poor by 2050, that is, 5 percent of the expected population, in the worst scenario). The country's low greenhouse gas emissions are expected to rise, mainly due to agriculture and land-use changes, with deforestation being a major contributing factor. Although Guinea-Bissau is a low emitter, it has high mitigation ambitions, targeting a 30 percent reduction in greenhouse gas emissions by 2030. The Nationally Determined Contribution outlines significant climate actions, with initiatives focused on forest conservation, sustainable agriculture, and community development. However, the country's political instability, institutional weaknesses, and limited financial resources pose challenges to implementing these climate commitments, which depend heavily on external funding. The financial sector's underdevelopment and vulnerability to external shocks limit its ability to support green investments, though reforms could enhance resilience. Guinea-Bissau must consider its climate financing as development financing and vice-versa, engage the private sector, and integrate climate goals with national development plans to ensure a sustainable future. Concessional climate financing is vital due to the underdeveloped financial sector and the government’s limited borrowing capacity. Addressing Guinea-Bissau's vulnerability to climate change and its structural issues requires a cohesive approach that integrates development and climate strategies. This could involve improving governance, diversifying the economy, protecting natural capital, developing human capital, and investing in sustainable agriculture and infrastructure. The transition to a more sustainable and inclusive development pathway that supports economic growth is possible, but requires focusing on key strategic sectors, enhancing institutional capacity, and creating the conditions to mobilize finance. As a highly vulnerable country, there are myriad needs in the different sectors; however, to be more efficient and effective, Guinea-Bissau should prioritize actions in a few sectors, especially actions on biodiversity, agriculture, and social protection. Low carbon development, especially in energy and forestry sectors, could provide cost-efficient solutions and attract climate finance, including from the private sector, which will support the overall development agenda.Publication Comoros Country Climate and Development Report(Washington, DC: World Bank, 2025-06-18)The Union of the Comoros (The Comoros) has significant vulnerability to climate change-related risks but has considerable opportunities to strengthen preparedness and resilience against these challenges. According to the Notre Dame Global Adaptation Index, the Comoros is the 29th-most vulnerable country to climate change and the 163rd most ready to adapt (out of 191). The Comoros archipelago is exposed to many natural hazards that adversely affect the country’s natural capital, people, and physical infrastructure. In 2014, the economic cost of climate-related disasters was estimated at 5.7 million dollars annually, equivalent to 9.2 percent of Gross Domestic Product (GDP). Between 2018 and 2023, as many as 11 tropical depressions or cyclones impacted the country, with Cyclone Kenneth causing the greatest damage, equivalent to 14 percent of GDP, resulting in total economic growth falling from 3.6 percent in 2018 to 1.9 percent in 2019. More than 345,000 people (40 percent of the population) were affected by the cyclone, with 185,000 people experiencing severe impacts and 12,000 people displaced. However, there is an opportunity for the country to grow more robust and shock-responsive, and to establish pre-positioned funding mechanisms to enhance future crisis response efforts. For the Comoros, adaptation and climate-resilient development are the key climate change focus areas, with the country projected to face 836 million dollars 2050 in additional costs due to climate-related impacts. Current plans to adapt to the impacts of climate change in the Comoros include efforts to improve water management, strengthen coastal protection, and develop climate-smart agriculture practices. Given the country’s reliance on its natural resource base for economic growth and mobility, protection of these resources from climate change will be essential for promoting resilient growth and development. In addition to growing the adaptive capacity of the country’s natural resource sectors, strategic economic diversification will be important to help minimize future climate impacts, and development activities will need to be undertaken in such a way as to attract low-carbon co-benefits. The Union of the Comoros is committed to addressing climate change through its Nationally Determined Contribution (NDC) and national priorities. The country’s NDC (which was revised in 2021 for a ten-year horizon) sets ambitious targets, with a goal of reducing greenhouse gas emissions by 23 percent by 2030. The country also plans to significantly increase the share of renewable energy in its energy portfolio, reaching 33 MW by 2030. This will not only promote low-carbon development but also reduce the country’s dependency on imported oil and coal, which currently make up 95 percent of the energy mix. Additionally, the Comoros has declared its intention to increase CO2 removals by 47 percent by 2030, compared to BAU.Publication Mongolia Country Climate and Development Report(Washington, DC: World Bank, 2024-10-22)Mongolia’s development prospects are uniquely challenged by both the impacts of climate change and the global shift toward a low-carbon economy. The country’s efforts toward decarbonization pose significant challenges given the structurally high-emission intensity of its economy. While challenging, climate action also presents Mongolia with opportunities to achieve important development benefits. The effects of climate risks and the shift away from coal will have diverse impacts across different regions, communities, and socioeconomic levels. The report assesses the critical interconnections between Mongolia’s development ambitions and climate change action and identifies ways to transition to a more economically diversified, inclusive, and resilient development path. It highlights key climate and transition risks affecting Mongolia’s future development and presents a pathway to enhance climate mitigation and adaptation. The report also makes a case for strengthening policies to enhance resilience to climate change and ensure a just transition, particularly for the most vulnerable. The report is structured as follows: section 1 gives introduction. Section 2 delves into the linkages between development and climate in Mongolia and presents model-based findings on the economic and poverty impacts of climate change under different scenarios. Section 3 covers four in-depth sectoral analyses. The first two mainly focus on adaptation to climate change in the agriculture and water sectors. The third considers prospects for the extraction sector, while the fourth sectoral analysis focuses on decarbonizing power and heat generation. Section 4 shifts the focus to how the government can boost resilience for climate-vulnerable populations. Section 5 outlines options for mobilizing private and public financing and private investments to support the green transition. Section 6 examines the existing institutional and governance structure for climate action and presents recommendations to improve its effectiveness, and section 7 concludes with a framework for prioritizing the policy actions outlined in this report.Publication Jobs in a Changing Climate: Insights from World Bank Group Country Climate and Development Reports Covering 93 Economies(Washington, DC: World Bank, 2025-11-05)The World Bank Group’s Country Climate and Development Reports (CCDRs) provide a crosscutting look at how countries’ development prospects, and the job opportunities they offer to their people, can be threatened by climate impacts and supported by climate policies. Climate change and policies affect jobs through impacts on productivity, energy and material efficiency, and physical, human, and natural capital. They can also transform employment opportunities, especially through complementary measures that help workers and firms adapt to and benefit from new technologies and production practices. Prepared by the World Bank, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA), CCDRs integrate country perspectives, climate science and economic modeling, private sector information, and policy analysis to assess how countries can successfully grow and develop their economies and create jobs despite increasing climate risks and while achieving their climate objectives and commitments. Each CCDR starts from the country’s development priorities, opportunities, and challenges, and is developed in close consultation with governments, businesses, and civil society, ensuring the recommendations reflect national priorities. By combining evidence on adaptation, resilience, and emissions pathways, CCDRs highlight where climate action can reinforce development and job creation, and where targeted policies are needed to manage risks and smooth labor market transitions. Taken together, these elements can help create local jobs, ensure economic transitions are just and inclusive, and equip workers and firms to navigate the disruptions and opportunities of a changing climate and changing technologies.Publication Kyrgyz Republic Country Climate and Development Report(Washington, DC: World Bank, 2025-11-03)This Country Climate and Development Report (CCDR) on the Kyrgyz Republic aims to support the country’s development goals amid a changing climate. The CCDR considers two policy scenarios up to 2050: the business-as-usual (BAU) and high-growth scenarios. As it quantifies the likely impacts of climate change on the Kyrgyz economy between now and 2050, the report highlights key government actions to best prepare for and adapt to climate impacts (referred to as “with adaptation” measures), with a particular focus on the time horizon up to 2030. The CCDR also outlines a path to net zero emissions by 2050 (referred to as “with mitigation” measures, “decarbonization,” or, simply, “net zero 2050”), highlighting associated development co-benefits.