WB calls for steps to bolster Palestinian economy

Even in the absence of an IsraeliPalestinian peace deal, steps can be taken now that could significantly brighten a gloomy Palestinian economic situation, the World Bank said on Tuesday.

In a new report it said addressing external constraints on the Palestinian economy “is the most important factor” in any turnaround, but the Palestinian Authority, which administers limited self-rule in the occupied West Bank, also had to do its part to cut red tape stifling business activity. Removing Israeli restrictions on Palestinian movement in socalled Area C in the occupied West Bank — where Israel maintains civil and security control — could boost the size of the West Bank economy by one-third in eight years, the World Bank said. “Such growth would not only be enabled by better access to critical scarce resources, notably land and water, but also other natural resources that would allow Palestinian businesses to take advantage of Area C’s comparative advantages in agriculture, mining and quarrying, and tourism,” it said. Area C, designated by interim peace deals signed in the 1990s, represents 61 percent of West Bank territory, and Israel cites security concerns for the restrictions it imposes there.

According to the World Bank, currently less than 1 percent of Area C, which is already built up, is designated by the Israeli authorities for Palestinian use, while the remainder is heavily restricted or off-limits to Palestinians. (RTRS)