web analytics
April 20, 2014 / 20 Nisan, 5774
At a Glance

Posts Tagged ‘Palestinian economy’

World Bank Distorting Truth, Blaming Palestinian Failures on Israel

Tuesday, March 12th, 2013

It’s that time of the year again, when the World Bank’s latest Economic Monitoring Report is being issued, and it includes a special segment on how things are in the Palestinian Authority.

The bank’s press release says that this year’s report stresses that “while the donor community’s efforts are directed towards short-term relief for Palestinian fiscal stress, it is important to recognize that the prolonged system of closures and restrictions is causing lasting damage to the competitiveness of the Palestinian economy.”

So, there’s a narrative in place, which is: Palestinians are poor, wealthy countries are sending in the funds, but Israel is limiting movement within the Palestinian Authority so badly, what with checking if their cars are carrying weapons, bombs, or suicide bombers, and what with the security wall that physically bars terrorists from sneaking into Israel – those things are ruining the Palestinian economy.

The problem with press releases of this kind is that one occasionally gets the feeling that their authors haven’t read their own text all the way through.

For instance, take a look at the following two paragraphs:

The economy is in danger of losing its capacity to compete in the global market, according to the report. It shows that the structure of the economy has deteriorated since the late 90’s as the value-added of the tradable sectors has declined, illustrated by the productivity of the agriculture sector having roughly halved and the manufacturing sector having largely stagnated.

The share of exports in the Palestinian economy has also been in steady decline since 1994, dropping to 7 percent in 2011, one of the lowest in the world. Moreover, Palestinian exports are concentrated in low value-added goods and services, the majority of which is exported to Israel.

So, starting in 1994, Palestinian poverty has been increasing steadily, until it really started revving down, so to speak, in more recent years.

And what magical event started in 1994? You guessed, the Paris Economic Protocol happened, which followed the 1993 Oslo Peace Accords, creating the Palestinian Authority and handing over the keys to the terrorist organization PLO, and its leader, the late Yassir Arafat.

Let’s consult Wikipedia for a somewhat different narrative than the one offered by the World Bank:

GDP per capita in the Palestinian territories rose by 7% per year from 1968-1980 (correlating with the “occupation”), but slowed during the 1980s. Between 1970 and 1991 life expectancy rose from 56 to 66 years, infant mortality per 1,000 fell from 95 to 42, the percentage of households with electricity rose from 30% to 85%, the percentage of households with safe water rose from 15% to 90%, the percentage of households with a refrigerator rose from 11% to 85%, and the percentage of households with a washing machine rose from 23% in 1980 to 61% in 1991.

You’re with me so far? After 19 years as a proud and free people under the loving rule of the Kingdom of Jordan, the Israeli takeover spelled a stunning prosperity for the occupation victims. But then the geniuses from Labor—Shimon Peres, Yossi Beilin, and Yitzhak Rabin—liberated the suffering Palestinian by imposing a gang of ruffians on them, complete with street executions and the exacting of protection money from every businessman and every productive person. The fruits of liberty ripened fast:

Economic conditions in the West Bank and Gaza, where economic activity was governed by the Paris Economic Protocol of April 1994 between Israel and the Palestinian Authority, deteriorated in the early 1990s. Real per capita GDP for the West Bank and Gaza Strip (WBGS) declined 36.1% between 1992 and 1996 owing to the combined effect of falling aggregate incomes and robust population growth. The downturn in economic activity was due to extensive corruption in the newly governing Palestinian Authority, and to Israeli closure policies in response to security incidents in Israel, which disrupted previously established labor and commodity market relationships.

This is years before the security wall, years before the complex system of checkposts, this is in a mere four years of Palestinian self rule.

“Continued financial support by the donor community, and increased reform efforts by the Palestinian Authority to manage the current fiscal challenges must remain a high priority,” said Mariam Sherman, World Bank Country Director for the West Bank and Gaza. “However, much bolder efforts to create the basis for a viable economy need to be made to prevent the continued deterioration that will have lasting and costly implications for economic competiveness and social cohesion.”

Not going to happen. You can’t run a competitive economy with armed thugs at the helm. For real prosperity, you must first kill all the gangsters. I say “kill” because throughout history we haven’t come up with a better, softer method of asking gangsters to leave.

Let Abbas Bail Out the Palestinian Authority

Sunday, September 16th, 2012

As the Jewish Press reported last week, Israel has advanced the Palestinian Authority NIS 250 million (approximately $62.5 million) to deal with their budget crisis which has led to protests against Western darling Salam Fayyad (the so-called Prime Minister of the Palestinian Authority).

This despite the fact that the the Palestinian Authority owes the Israel Electric Company some NIS 700 million.

Palestinian Authority President Mahmoud Abbas, who is also reeling from the protests, is allegedly worth $100 million.  That figure according to a former Arafat aide, Muhammed Rachid. Other sources also implicate Abbas as well as his sons in various corruption schemes which have and are making them rich.

Here’s one example from a report from the Foundation for the Defense of Democracies given to Congress:

Yasser, the elder son, owns Falcon Tobacco, which reportedly enjoys a monopoly on several tobacco products in the Palestinian territories. According to the Toronto Star, Yasser also chairs Falcon Holding Group, a Palestinian corporate conglomerate that owns Falcon Electrical Mechanical Contracting Company (also called Falcon Electro Mechanical Contracting Company, or FEMC), an engineering interest that was established in 2000 and boasts offices in Gaza, Jordan, Qatar, the United Arab Emirates, and the West Bank. This business success has come with a helping hand from Washington. According to a Reuters report, in 2005, Yasser Abbas’ company received $1.89 million from USAID to build a sewage system in the West Bank town of Hebron.

So why not let Abbas save his own skin, instead of having Israel repeatedly bail the Palestinian Authority out?

Where’s the Shame? U.S. Tax Dollars Funding Palestinian Fiscal Incompetence & Terror

Tuesday, September 4th, 2012

The economy presided over by the Palestinian Authority and its head Mahmoud Abbas is a peculiar thing.

A year ago, the New York Times reported that the PA had managed to run up a deficit of more than half a billion US dollars in 2011 alone, and was borrowing heavily from unspecified banks. The financial crisis, according to PA prime minister and famed economist Salam Fayyad, was due to the failure of the PA’s sovereign friends to make good on their pledges. “Of the $971 million pledged by donors for this year, $330 million of it has been paid so far,” said the July 2011 report, quickly adding that “Fayyad said the current financial crisis had no bearing on the Palestinians’ readiness for independence.”

Ready for independence or not, the PA has now managed to run up an electricity tab of more than NIS 700 million. That’s how much they owed the Israel Electric Company as of September 1, 2012. Israel’s minister for energy Uzi Landau said yesterday that he will be instructing the IEC “to take all necessary steps to collect these debts, with all the implications that may arise.” Does he mean to turn off the power to the Abbas regime? Maybe.

The Times of Israel noted that:

“The accumulated electricity debt is another sign of the Palestinian Authority’s mounting cash crunch, which it largely blames on a sharp reduction in foreign aid since 2011.”

In tough economic times, you make tough economic decisions. Unless you’re the Palestinian Authority. Contemplate yesterday‘s report from Israel’s Channel 2, that the Palestinian Authority is spending $4.5 million a month paying salaries to  Palestinians in Israeli jails and to their families.

According to the report, the amount the Palestinians receives depends on  how long he is sentenced to (or in other words, how severe the crimes of the terrorist were).  Pursuant to a 2003 Palestinian Authority law, getting sentenced up to five years in prison earns NIS 1,000 ($250) per month. A life sentence earns NIS 4,000 ($1,000).  That amount increased further in 2011, under Fayyad’s stewardship, by an average of 300%.

And these terror-salaries and family benefits are not restricted to the members of the so-called “moderate” Palestinian factions like Fatah. They include Hamas and Islamic Jihad.

The report goes on to say that murderers get paid even more, the longer their incarceration. To illustrate, the Channel 2 report brings the case of the multiple murderer Abdullah Barghouti, sentenced in 2004 to 67 life sentences – one for each of the lives he snuffed out. He’s also the man who built the bomb that murdered Malki Roth (the daughter of the authors of this article). As a convicted murderer on behalf of the Palestinian Arabs, he qualifies for a monthly stipend of NIS 4,000 ($1,000). This will rise automatically next year to NIS 6,000.

(Here’s the original Channel 2 news report in Hebrew; and the Times of Israel‘s English version).

According to the U.S. Institute of Peace as well as the Congressional Research Service, Palestinians in Judea and Samaria (“West Bank”) and the Gaza Strip, are “the largest per capita recipients of international development assistance in the world.”

Who makes available the funding that allows the PA to conduct its unconscionable, terror-encouraging financial policies? Well, quite a number of people, if you’re asking. And some that may be quite close to where you live.

In an article for Algeminier, Arsen Ostrovsky, a fellow at the American Center for Democracy, wrote that:

In the last five years, the U.S. government has poured at least $4 billion in aid to the Palestinians, with very little to show in return – except more terror and corruption.Since 2008, annual U.S. bilateral assistance to the PA has averaged over $600 million, including $513 million for the current budgetary year.Time has now long come to ask whether the U.S. should continue funding at all.

Ostrovsky notes that when this past April, Congresswomen Ileana Ros-Lehtinen (R-Fl), as chair of the House Foreign Affairs Committee put a hold on $59 million destined to the Palestinian Authority, Secretary of State Hillary Clinton released them anyway on the grounds that the funds ” provided critical support to the Palestinian people and those leaders seeking to combat extremism within their society and build a more stable future.”

Methodists Won’t Support Divestment from Israel

Thursday, May 3rd, 2012

The general conference of the United Methodist Church voted not to divest from three companies that trade with Israel.

Two-thirds of the approximately 1,000 delegates to the conference voted Wednesday in Tampa, Fla., against a motion to divest from Caterpillar, Motorola Solutions and Hewlett-Packard.

Divestment advocates claim that products manufactured by these companies are used to repress Palestinians.

The conference passed motions opposing Jewish settlements in Judea and Samaria, recommending the boycott of products manufactured in settlements, and supporting investment in the Palestinian economy.

Language that would have affirmed the Kairos Document prepared by Palestinian Christians endorsing divestment and boycotts and upholding armed resistance was removed from resolutions before they reached the floor.

A number of groups, including one called United Methodist Kairos Response, had lobbied for the divestment language.

Alex Joyner,  the spokesman United Methodists for Constructive Peacemaking in Israel and Palestine, said in a statement that his group “had been actively opposing divestment and encouraging the more productive approach of negotiations and positive investments.”

Printed from: http://www.jewishpress.com/news/breaking-news/methodists-wont-support-divestment-from-israel/2012/05/03/

Scan this QR code to visit this page online: