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The report makes the obligatory criticisms that Israeli restrictions significantly impact Palestinian’s ability to trade and remain the biggest impediment to investing because they create high uncertainty and risk, and that Palestinian goods have difficulty entering the Israeli market. But it ignores that this damage is also self-inflicted as these restrictions are due to Israel’s security needs as a defense against further Palestinian violence. The Report also says nothing about the climate of innovation in the Israeli culture, and how it has continually overcome adversity — factors that help explain the large disparity between the GDP per capita of Israelis and Palestinians.
How can the viability of the Palestinians be increased? Clearly, there are problems to be resolved besides the acute one of differences between the Fatah control of the West Bank and the Hamas rule of Gaza since 2007.
If the Palestinian narrative has gained some resonance in the political realm, the PA has lacked competence in economic matters and not been devoid of corruption. It could try to build a better business and investment environment by reforming the legal system, especially relating to land, now composed of a disparate group of layers of Ottoman, British Mandate, Jordanian, Egyptian, Palestinian laws which differ between Gaza and the West Bank, and Israeli military concerns. Although the report speaks of the well educated, entrepreneurial population in the West Bank, it is apparent that the skill level of Palestinian workers needs to be improved by more emphasis on cognitive and behavioral skills, such as discipline and work effort.
Most importantly, and not sufficiently stressed by the World Bank report, are the benefits that would accrue to the Palestinians were there a peace settlement. Economically, these would include a well-balanced customs union between a future Palestinian state and Israel, and a non-discriminatory policy of free trade agreements. Above all, the fundamental requisite for economic and political progress is to end the violence.
Originally published by the Gatestone Institute http://www.gatestoneinstitute.org
About the Author: Michael Curtis is Distinguished Professor Emeritus of Political Science at Rutgers University, and author of the forthcoming book, Should Israel Exist? A sovereign nation under assault by the international community.
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Latvia, July 4, 1941 they forced many Jews in the shul putting it on fire; everyone was burned alive
There’s blood on the reporters’ hands AND New Israel Fund for funding groups feeding lies to the UN
Respect & appreciation for our country is not only a civic value but an essential Jewish one as well
Israel, like the non-radical Islamic world. will be happy see the ISIS beheaded for once.
Kids shouldn’t have “uninstructed” Internet access, better to train them how to use it responsibly
What if years from now, IS were to control substantial territory? What world havoc would that wreak?
Rambam writes the verse’s double term refers to 2 messiahs: first King David; 2nd the final Mashiach
The Gaza flotilla has been rightfully and legally blocked by Israel’s Navy, with greetings from Bibi
The president described the attack as “an act that drew on a long history of bombs and arson and shots fired at churches, not random, but as a means of control, a way to terrorize and oppress…”
“The only [candidate] that’s going to give real support to Israel is me,” said the 69-year-old Trump.
And whereas at the outset the plan was that Iran would have to surrender most of its centrifuges, it will now be able to retain several thousand.
Now oil independent, US no longer needs its former strategic alliances with Gulf States-or Israel
Boko Haram enforces a patriarchal oriented society in which women are treated as “sexual slaves.”
With the Syrian government refusing to allow UN inspectors into the country it is difficult to see how indisputable proof of use of chemical weapons can be found
Sweden is now a country where orthodox Jews are afraid to wear a skullcap.
Since June 2005, the EU has given more than $48 million to over 90 NGOs based in Israel, who are regarded as critical of Israel.
The EU has yet to appreciate the reality that the conflict continues because of the refusal of the Palestinians to accept the right of the State of Israel to exist.
Today, fewer than 4,500 Jews remain in Arab countries. Israel absorbed and integrated 600,000 of the more than 850,000 who left.
The Palestinians have asked the World Heritage Committee (WHC) of UNESCO to recognize Battir, a village about 5 miles west of Bethlehem, as a World Heritage Site and add it to the 936 sites already maintained by UNESCO. The city’s original name was Betar, the last fortress of Bar Kochba and the name of Jabotinsky’s Zionist youth movement.
Printed from: http://www.jewishpress.com/indepth/analysis/is-a-palestinian-state-today-economically-viable/2012/08/08/
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