By David Singer ——Bio and Archives--October 13, 2013
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"Whilst the unsettled political environment and internal Palestinian political divisions have contributed to investor aversion to the Palestinian territories, Israeli restrictions on trade, movement and access have been seen as the dominant deterrent."Accepting the Report's conclusion - the fastest way to end these Israeli restrictions would be a signed peace treaty between the PLO and Israel. In Area C - 61% of the West Bank where Israel exercises complete administrative and security control under the Oslo Accords - the World Bank report states:
" Area C is particularly important because it is either off limits for Palestinian economic activity, or only accessible with considerable difficulty and often at prohibitive cost. Since Area C is where the majority of the West Bank's natural resources lie, the impact of these restrictions on the Palestinian economy has been considerable. Thus, the key to Palestinian prosperity continues to lie in the removal of these restrictions with due regard for Israel's security."Realistically these restrictions in Area C are not going to disappear until the signing of a peace treaty that guarantees Israel's security. Yet the PLO stubbornly maintains its intransigent and rejectionist demands - whilst simultaneously encouraging economic, divestment and sanctions boycotts and public relations campaigns undertaken with funds supplied by foreign Governments and wealthy private foundations - designed to denigrate and delegitimise Israel and erode Israel's legal rights negotiated under the Oslo Accords with the PLO. That is the PLO's prerogative - but it has come at a heavy political and economic cost. The World Bank report confirms this gloomy assessment:
"Access to Area C will not cure all Palestinian economic problems - but the alternative is bleak. Without the ability to conduct purposeful economic activity in Area C, the economic space of the West Bank will remain crowded and stunted, inhabited by people whose daily interactions with the State of Israel are characterized by inconvenience, expense and frustration."Regrettably those affected by the PLO's political stance - the West Bank Arab population - are denied any say in determining whether changes need to take place that would improve their economic and political fortunes. PLO Chairman Mahmoud Abbas refuses to hold elections in the West Bank - preferring to continue with failed policies that threaten the future aspirations of the people he claims to represent - so clearly exposed in this damning World Bank Report. Abbas continues to travel the world's capitols unsuccessfully seeking financial support whilst an ailing economy collapses before his very eyes - as the World Bank Report makes ominously clear:
" Recent growth rates are proving unsustainable, however. Growth in recent years has been driven largely by extraordinary levels of donor budget support, which amounted to USD 1.8 billion, or 29 percent of GDP, in 2008. This fuelled a significant expansion in consumption, particularly the consumption of valuable public services such as policing, education and health (the share of public administration, education, and healthcare in GDP increased from 19 to 26 percent between 1994 and 2011). By 2012, however, budget support had decreased by more than half, and growth rates had declined from 9 percent in 2008-11 to 5.9 percent by 2012 and 1.9 percent in the first half of 2013 (-0.1 percent in the West Bank)."International donors financial support is running out - as is PLO peace treaty signing time - as is the continuing disenfranchisement of the West Bank Arabs. An explosive cocktail indeed.
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David Singer is an Australian Lawyer, a Foundation Member of the International Analyst Network and Convenor of Jordan is Palestine International—an organization calling for sovereignty of the West Bank and Gaza to be allocated between Israel and Jordan as the two successor States to the Mandate for Palestine. Previous articles written by him can be found at: jordanispalestine.blogspot.com