|
|
The Economic Dimensions of the Palestinian-Israeli Conflict
| Article
# : |
17182 |
|
|
Section : |
MODERN THOUGHT
|
| Issue
Date : |
12 / 1990 |
5,219 Words |
| Author
: |
Joel Bainerman
|
Despite all that has been said and written about the Palestinian-Israeli conflict, neither the problem nor the solution can be comprehended without considering the economic factors. Any peace agreement will last only so long as the Palestinian economy prospers and socioeconomic development has had a chance to cement the fragile strands of political stability thereby assuring that peace has a long run.
If a summary description of the nearly twenty-three years of Israeli rule in the territories were required, then one might say that Israel wants the benefits of the West Bank and Gaza Strip, both as a source of cheap labor and for a market, without the responsibility of developing the region's economic and industrial infrastructure for the Palestinians. Israel didn't do nearly enough planning for the economic development of the West Bank and Gaza Strip. It failed to encourage capital investment or to financial resources toward industrial development. It also neglected to provide Israeli investors with governmental guarantees and political assurances.
The Palestinians, on the other hand, want all the economic benefits that integration with the Israeli economy brings, but without Israel.
The inhabitants of the two territories have made great strides in economic prosperity in the past two decades. But their development lags, and their progress is measured only in purchasing power and expanded service sectors. Israel has not addressed the underlying structural problems of the territorial economies, nor has it provided or created additional local employment opportunities. However, by offering Palestinians work in Israel, it did present some short-term solutions that alleviated the high rate of unemployment and led to widespread economic well-being in the population.
Hisham Awartani is a lecturer at Al-Najah University in Nablus and probably the most prominent economist in the territories. He claims that while work in Israel is important to the Palestinian economy, the Israeli government has stifled the indigenous populations' productive base.
"By restricting the number of licenses granted to establish factories, Palestinian industry has been reduced to a minimum, which has left a very deep scar on the economy of the territories," he claims. "As a result, the local absorptive capacity of the labor market has been reduced. While employment in Israel has had a positive impact on the GNP of the territories, not all surplus labor went to Israel, as our economy has been structured in such a way as to create push-and-pull factors which made that exodus unavoidable."
Dan Zakai, a senior economist at the Bank of Israel and a leading specialist in relations between the Israeli and territorial economies, counters that interpretation. "Why should Israel be blamed if 115,000 Palestinians are able to work in the Israeli economy?" he asks. "Most Arab economies, certainly Jordan's and Egypt's, are not able to support the high growth in the population. More than 15,000 Palestinians enter the work force each year. The economic problems in the territories are not unique but rather typical of most developing societies."
Traditionally, capital formation in Arab societies has been difficult. Traditional societies in general prefer to invest in homes
...
Read Full Article
|
|
