World Bank publishes plan for boosting Palestinian economy

BETHLEHEM: The World Bank has released a report highlighting a “new vision” for the Palestinian economy based on the expansion of the private sector that could increase growth in the occupied Palestinian territory by 7% each year.

The report acknowledged the importance of a political settlement for the decades-long conflict in the territory, but “measures over the medium term can create new economic activity, attract private investment, generate jobs and significantly improve living standards”.

The World Bank said investing in the private sector in the Palestinian territory could drive an annual growth rate of 6% in the West Bank – which could create 50 000 jobs – and 8% in the besieged Gaza Strip, producing 60 000 new jobs.

The World Bank’s report used a 10-year economic model to determine the impact investment in the private sector would have on the Palestinian economy.

Some of the reforms proposed by the World Bank that would benefit the growth of the Palestinian economy included facilitating trade and transactions for Palestinian firms at Israeli-controlled crossings, reviewing policies relating to dual-use items (material that could be used for civilian and military uses) to lessen the process of obtaining special licensing for certain items, removing Israeli restrictions on Palestinian development in Area C (the more than 60% of the West Bank under full Israeli control), and lifting the decade-long Israeli blockade on the Gaza Strip.

The World Bank said implementing these reforms would increase the size of the Palestinian territory’s economy by 36% in the West Bank and 40% in Gaza by 2025.

The report also suggested several reforms to internal Palestinian policies. – Ma’an