Wednesday, May 9

World Bank: Sustainable Palestinian Economic Recovery Impossible under Israeli Restriction System

The World Bank said that the restriction system imposed by Israeli authorities has fragmented the West Bank into 10 economically isolated cantons, severed Palestinian economic, social and physical links to Jerusalem and denied Palestinians access to some 50% of West Bank land for economic purposes.

In a report issued Wednesday on Movement and Access Restrictions in the West Bank, it noted that although physical impediments are the visible manifestations of closure, the means of curtailing Palestinian movement and access are far more complex and are based on a set of administrative practices and permit policies.

According to David Craig, World Bank Country Director for the West Bank and Gaza, this has devastated the Palestinian economy. "The restriction system has caused a rise in transaction costs, making Palestinian goods increasingly uncompetitive. Even more importantly, the system has created such a high level of uncertainty and inefficiency that the normal conduct of business in the West Bank has become exceedingly difficult and investment has been stymied," he said.

The World Bank added that the resulting system, while enhancing Israeli security, is also aimed at protecting and enhancing the free movement of settlers and the physical and economic expansion of the settlements at the expense of the Palestinian population.

"Palestinian economic revival is predicated on an integrated economic entity with freedom of movement between the West bank and Gaza and within the West Bank, unfettered Palestinian access to West Bank land for economic purposes, and reliable access to world markets," Craig added. "The restriction system has significantly undermined these conditions. Restoring sustainable Palestinian economic growth is dependent on its dismantling."

It noted that although physical impediments are the visible manifestations of closure, the means of curtailing Palestinian movement and access are far more complex and are based on a set of administrative practices and permit policies.
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