Twenty-Seven Months - Intifada, Closures, and Palestinian Economic Crisis : An Assessment

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collection.link.131
https://openknowledge.worldbank.org/handle/10986/5996
collection.link.214
https://openknowledge.worldbank.org/handle/10986/11872
collection.name.131
Arabic PDFs Available
collection.name.214
Policy Notes
dc.contributor.author
World Bank
dc.date.accessioned
2013-07-26T16:22:48Z
dc.date.available
2013-07-26T16:22:48Z
dc.date.issued
2003-05
dc.date.lastModified
2017-12-13T12:13:09Z
dc.description.abstract
"Twenty-Seven Months - Intifada, Closures and Palestinian Economic Crisis: An Assessment" was prepared as a follow-up to a report published in March 2002 ("Fifteen Months - Intifada, Closures and Palestinian Economic Crisis" report no. 24931). The main objectives of this second Assessment are once again to help donors and the Palestinian Authority (PA) cope with the deep economic crisis in the West Bank and Gaza, as well as to encourage and inform discussion on Palestinian economic issues among the donors, the PA and the Government of Israel. Despite an inevitable preoccupation with short-term emergency issues, the report seeks to preserve a focus on the types of medium-term economic and institutional policies that will return to prominence once the current conflict ceases to dominate the daily lives of Palestinians and Israelis. While any short-term recovery will depend on the lifting of closures, this will not suffice to put the Palestinian economy onto a sustainable growth path. The de facto customs union with Israel formalized under the Paris Protocol makes the Palestinian economy particularly vulnerable to closure. In a structural sense, though, the long-term growth potential of the Palestinian economy has been stunted by the upward pressure on domestic Palestinian labor prices created by the wages paid to Palestinian workers in Israel. Domestic wage increases have exceeded any underlying growth in productivity, and have undermined Palestinians' ability to export competitively-priced goods to the rest of the world. Bank analysis shows that a proactive policy of export development, in which a more open and less discriminatory trade regime is adopted, should result in higher incomes by 2010 than a return to previous levels of employment in Israel. Between 1968 and 2000, Palestinians in the West Bank and Gaza pursued a development strategy which featured the export of labor rather than goods. In June 2000, three months before the current Palestinian intifada began, 21 percent of all employed Palestinians worked in Israel, mainly in low-skilled construction and agricultural jobs. Net incomes from abroad provided more than 21 percent of Palestinian GNI, making it one of the most remittance-dependent economies in the world. This is why the loss of jobs in Israel in the past two years has had such a strong impact. Put another way, the intifada has demonstrated the vulnerability of a development strategy which relied so heavily on labor exports to Israel. The shift to a goods-based export policy would take time, would be subject to many uncertainties and would require the active cooperation of Israel to succeed; it is thus part and parcel of a political rapprochement. It is also true that restoring access to the Israeli labor market would be the quickest way to boost incomes for a large number of ordinary Palestinians. Realistically, though, a return to pre-September 2000 employment levels for Palestinians in Israel seems unlikely - and would anyway risk perpetuating a high level of Palestinian economic dependence on Israel, hindering the emergence of a diversified development strategy with much greater long-term growth potential.
en
dc.identifier
http://documents.worldbank.org/curated/en/2003/05/2430854/twenty-seven-months-intifada-closures-palestinian-economic-crisis-assessment
dc.identifier.uri
http://hdl.handle.net/10986/14614
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
ECONOMIC RECESSION
dc.subject
BANKRUPTCY
dc.subject
UNEMPLOYMENT RATES
dc.subject
CONFLICT AREAS
dc.subject
DONOR FINANCE
dc.subject
BUDGET ADMINISTRATION
dc.subject
EMERGENCY RELIEF
dc.subject
ECONOMIC RECOVERY
dc.subject
TARGETED ASSISTANCE
dc.subject
UNEMPLOYMENT RATES
dc.subject
REFUGEE RELIEF
dc.subject
LAND REHABILITATION
dc.subject
PRIVATE SECTOR DEVELOPMENT
dc.subject
RECONSTRUCTION
dc.subject
PRIVATE INVESTMENTS
dc.subject
FISCAL ADMINISTRATION
dc.subject
TAX REVENUES
dc.subject
BORDER INTEGRATION
dc.subject
LABOR MARKET POLICY
dc.subject
CIVIL SERVICE REFORM
dc.subject
POLITICAL ACCOUNTABILITY
dc.subject
PUBLIC SERVICE DELIVERY
dc.subject
DOMESTIC WORKERS
dc.subject
HUMANITARIAN ASSISTANCE
dc.subject
INFORMATION DISSEMINATION
dc.subject
WAGE INCREASES
dc.subject
LABOR FORCE PARTICIPATION
dc.subject
INCOME GENERATION
dc.subject
EXPORT PERFORMANCE
dc.subject
TRADE REGIME
dc.subject
TRADE EXPANSION
dc.subject
COMPETITIVENESS
dc.subject
GOODS
dc.subject
TRADE REGIME
dc.subject
TRADE BARRIERS
dc.subject
ECONOMIC STABILIZATION
dc.subject
WORK PERMITS
dc.subject
NATIONAL SECURITY
dc.subject
MILITARY OCCUPATION
dc.subject
MILITARY OPERATIONS
dc.subject
TRANSACTION COSTS ACCOUNTING
dc.subject
ADOLESCENTS
dc.subject
AGRICULTURE
dc.subject
BORROWING
dc.subject
CLIMATE
dc.subject
CLINICS
dc.subject
COMMITMENT
dc.subject
COMMITMENTS
dc.subject
CONSUMER PRICE INDEX
dc.subject
CPI
dc.subject
DEVELOPMENT ASSISTANCE
dc.subject
DEVELOPMENT STRATEGY
dc.subject
DISBURSEMENT
dc.subject
DISBURSEMENTS
dc.subject
DONOR ASSISTANCE
dc.subject
DONOR COORDINATION
dc.subject
DONOR COUNTRIES
dc.subject
ECONOMIC ACTIVITY
dc.subject
ECONOMIC IMPACT
dc.subject
ECONOMIC OUTLOOK
dc.subject
ECONOMIC POLICIES
dc.subject
ECONOMIC RECOVERY
dc.subject
ECONOMIC SHOCKS
dc.subject
ECONOMIC STABILITY
dc.subject
ECONOMIC TRENDS
dc.subject
EXPENDITURES
dc.subject
EXPORTS
dc.subject
FAMILIES
dc.subject
FATIGUE
dc.subject
FINANCING GAP
dc.subject
FOREIGN ASSISTANCE
dc.subject
FREE TRADE
dc.subject
GDP
dc.subject
GDP PER CAPITA
dc.subject
GROSS DOMESTIC PRODUCT
dc.subject
GROSS NATIONAL PRODUCT
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GROWTH POTENTIAL
dc.subject
HUMAN RIGHTS
dc.subject
IMPORTS
dc.subject
INFLATION
dc.subject
INSURANCE
dc.subject
LEGISLATION
dc.subject
LIFTING
dc.subject
LOCAL GOVERNMENTS
dc.subject
MALNUTRITION
dc.subject
MANUFACTURERS
dc.subject
MEDIA
dc.subject
MUNICIPAL FINANCE
dc.subject
MUNICIPALITIES
dc.subject
NATIONAL INCOME
dc.subject
OPPORTUNITY COST
dc.subject
PER CAPITA INCOMES
dc.subject
POPULATION GROWTH
dc.subject
POVERTY LINE
dc.subject
PRIVATE SECTOR
dc.subject
PRODUCTIVITY
dc.subject
PUBLIC INVESTMENT
dc.subject
REAL GDP
dc.subject
REFUGEES
dc.subject
REVENUE TRANSFERS
dc.subject
SAFETY
dc.subject
SAFETY NETS
dc.subject
SCHOOLS
dc.subject
SUPPLIERS
dc.subject
SUSTAINABLE GROWTH
dc.subject
TAX
dc.subject
TAX REVENUES
dc.subject
TECHNICAL ASSISTANCE
dc.subject
TRANSACTION COSTS
dc.subject
TREASURY
dc.subject
UNEMPLOYMENT
dc.subject
UNEMPLOYMENT RATE
dc.subject
VALUE ADDED
dc.subject
VIOLENCE
dc.subject
WAGES
dc.subject
WEALTH
dc.subject
WEALTH CREATION
dc.subject
WORKERS
dc.subject
WORKPLACE
dc.title
Twenty-Seven Months - Intifada, Closures, and Palestinian Economic Crisis : An Assessment
en
okr.doctype
Economic & Sector Work :: Policy Note
okr.doctype
Economic & Sector Work
okr.docurl
http://documents.worldbank.org/curated/en/2003/05/2430854/twenty-seven-months-intifada-closures-palestinian-economic-crisis-assessment
okr.globalpractice
Macroeconomics and Fiscal Management
okr.globalpractice
Health, Nutrition, and Population
okr.googlescholar.linkpresent
yes
okr.identifier.externaldocumentum
000160016_20030714162552
okr.identifier.internaldocumentum
2430854
okr.identifier.report
26314
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2003/07/14/000160016_20030714162552/Rendered/PDF/263141270months0Intifada10Closures.pdf
en
okr.region.administrative
Middle East and North Africa
okr.region.country
West Bank and Gaza
okr.sector
Public Administration, Law, and Justice :: General public administration sector
okr.topic
Health Monitoring and Evaluation
okr.topic
Economic Theory and Research
okr.topic
Environmental Economics and Policies
okr.topic
Macroeconomics and Economic Growth :: Economic Adjustment and Lending
okr.topic
Public Sector Economics and Finance
okr.topic
Health, Nutrition and Population
okr.unit
West Bank and Gaza (MNC04)

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