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Israel's Economic Efforts to Promote Peace
Wages in West Bank Increase 24%
Experts available for comment
Since the beginning of 2008, the Israeli government has made significant efforts to create jobs and hope for West Bank Palestinians. In fact, Israel has assisted the Palestinian Authority (PA) with a number of infrastructure and industrial projects aimed at increasing trade and employment.
"Economic development does not solve problems, it mitigates them and makes them more accessible for solution, and creates a stronger political base," Israeli Prime Minister Benjamin Netanyahu said in 2008. [1]
The creation of a Palestinian homeland depends in part on a viable Palestinian economy. Independently stable Palestinian and Israeli economies can help facilitate the possibility of peaceful coexistence and reduce the counterproductive influence of Iran’s terrorist proxies among the Palestinians. [2] [3]
While Palestinian officials have said they want Israel to freeze settlement construction in the West Bank, [4] some Palestinians have complained that a settlement freeze would severely damage their economic livelihoods. According to PA officials, more than 12,000 Palestinians are employed as workers constructing homes in the settlements. [5]
Said one Palestinian construction worker, “We come here [to the settlements] because our Palestinian and Arab governments haven't done anything to provide us with better jobs.” According to another, Palestinians employed by Israeli companies earn almost three times what they would earn working for Palestinian companies. [6]
Economic Progress
• Despite the global recession., unemployment among Palestinians in the West Bank decreased by 3 percent in 2008; [7]
• Trade between Israel and the Palestinian Authority increased by 35 percent in 2008; [8]
• The average daily wage in the West Bank increased by 24 percent during 2008, compared to 2007; [9]
• There was a 953 percent increase in trucks importing produce to the PA; [10]
• Tourism to Bethlehem increased by 94 percent in 2008; [11]
• The total income for the Palestinian olive harvest increased in 2008 by 158 percent, from USD $51 million (200 million shekels) in 2007 to USD $132 million (517 million shekels) in 2008; [12]
• There was a 206 percent increase in agricultural exports from the PA to Israel, from 30,000 tons in 2007 to 92,000 tons in 2008; [13]
• The number of Palestinians given Israeli work permits increased by 10 percent, from 21,000 in 2007 to 23,000 in 2008. [14] In 2008, these permits were valid for six months, instead of three months as was the case in 2007. [15]
• A 2008 Israeli government study reports that economic cooperation and interaction between the Israeli government and the Palestinian Authority resulted in significant economic progress in the West Bank. Improvements in the Palestinian economy were not happenstance. Israel took specific steps in 2008 to ensure Palestinian economic growth: The West Bank’s gross domestic product (GDP) grew 2.3 percent in 2008; [16]
In 2008, Israel also supported a number of long-term development projects, including the development of industrial parks in the West Bank towns of Jenin and Tarkumiya.
New Infrastructure Construction in West Bank Facilitates Jobs, Education
Israel also is in the process of building new roads and sewage systems in Ramallah and Nablus and new schools in Jilabun and Jenin. These projects will help develop the West Bank and the overall Palestinian economy as well as generate many new jobs. [17]
A number of economic conferences are being held to find ways to bolster the Palestinian economy, strengthen infrastructure, industry, agriculture and domestic tourism. [18] In November 2008, the Palestine Investment Conference in Nablus announced seven new West Bank investment projects valued at $510 million. [19] In addition, the Palestinian Investment Fund and the Nablus municipality agreed to build an industrial zone on 30 acres in Nablus. The project was initially projected to cost $25 million but is expected to increase to $85 million. [20]
Israel works together with Palestinian customs offices and has established an Israeli-Palestinian Chamber of Commerce and the Palestinian Israeli Business Forum. A joint economic committee between Israel’s Ministry of Finance and its Palestinian counterpart meets regularly to discuss issues such as Palestinian workers in Israel and the transfer of funds to Gaza. [21]
Other joint committees were created under the Oslo Accords and continue to foster cooperation between Israelis and Palestinians in different fields such as tourism, transportation, water, health, welfare and telecommunications, which have all met at least once in 2008. [22]
The 2007 Palestine International Business Forum study projected that economic cooperation between Israelis and Palestinians could yield $25 billion in exports and income profits, as well as the creation of a million jobs for both Israelis and Palestinians. [23] The study also stated that with economic interdependence, Israelis and Palestinians could not afford to wage war on each other.
Israel also has worked to develop understanding, networking and dialogue between Israelis and Palestinians through organizations such as MASHAV and People to People. [24] MASHAV, Israel’s Center for International Cooperation, promotes sustainable development in the developing world by sharing technology, and has trained nearly 200,000 international participants; [25] the People to People program works to bring about dialogue between Israeli and Palestinian civil societies – people, not just leaders – through activities such as meetings, seminars and sports competitions. [26]
Israel's economic investment in the Palestinian economy is especially critical at this time because many countries have failed to pay their pledges to the Palestinians. This has worsened the Palestinian Authority's financial crisis. [27]
Experts for Comment
Israeli-Palestinian Economic Cooperation
Ofir Gendelman (Arabic and English)
CEO of the Israel-Palestinian Chamber of Commerce
Tel.: 972-3-609-9901
Cell: 972-54-254-5800
Website: http://ipcc.org.il
Dan Catarivas
Director of Foreign Trade and International Relations for the Manufacturers Association of Israel
Tel.: 972-3-519-8814
E-mail: trade@industry.org.il
Website: http://www.industry.org.il/Eng/
U.S.-Israel Relations, Diplomacy
Jennifer Laszlo Mizrahi
Founder and President, The Israel Project
Tel.: 202-857-6644 (office); 202-365-0787 (cell)
E-mail: jenniferm@theisraelproject.org
Web site: www.theisraelproject.org
Ambassador Jeremy Issacharoff
Deputy Chief of Mission, Embassy of Israel
Tel: 202-364-5578 (office)
E-mail: dcm@israelemb.org
Jonathan Peled
Spokesman, Israeli Embassy
Cell: (202) 276-2800
E-mail: sp@washington.mfa.gov.il
Zalman Shoval
Former Israeli Ambassador to the U.S., former member of Knesset
Tel.: Assistant, Tammi: 972-3-517-3310
Mitchell Bard
Executive Director, American-Israeli Cooperative Enterprise
Tel: 301-565-3918
E-mail: mgbard@aol.com
Mitchell G. Bard is the author of 19 books including "Myths and Facts: A Concise Record of the Arab-Israeli Conflict" and "Will Israel Survive?" Mr. Bard is a well-known expert on foreign policy and the Middle East and has appeared on local and national television and radio outlets.
David Makovsky
Director of the Project on the Middle East Peace Process, Washington Institute for Near East Policy
Tel: 202-452-0650 (office)
E-mail: davidm@washingtoninstitute.org
Ambassador Martin Indyk
Former U.S. Ambassador to Israel, Director of the Saban Center for Middle East Policy
Office: 202-797-6462
E-mail: sabancenter@brookings.edu
Footnotes:
[1] “Israel’s Netanyahu pushes economic peace plan,” Agence France-Presse via GoogleNews, Nov. 19, 2008, http://www.google.com/hostednews/afp/article/ALeqM5gyv0VpRA4kI7sR9BN0KpQh-2RbuA
[2] “Israel-Palestinian Economic Relations,” Israel Ministry of Foreign Affairs, Nov. 22, 1998, http://www.mfa.gov.il/MFA/Peace%20Process/Guide%20to%20the%20Peace%20Process/Israeli-Palestinian%20Economic%20Relations
[3] “Israel’s Netanyahu pushes economic peace plan,” Agence France-Presse via GoogleNews, Nov. 19, 2008, http://www.google.com/hostednews/afp/article/ALeqM5gyv0VpRA4kI7sR9BN0KpQh-2RbuA
[4] “Clinton: U.S. won't deal with Hamas until it accepts our terms,” Haaretz, April 22, 2009, http://www.haaretz.com/hasen/spages/1080093.html
[5] Toameh, Khaled Abu, “Palestinians want to build settlements,” The Jerusalem Post, June 25, 2009, http://www.jpost.com/servlet/Satellite?cid=1245924932645&pagename=JPost%2FJPArticle%2FShowFull
[6] Toameh, Khaled Abu, “Palestinians want to build settlements,” The Jerusalem Post, June 25, 2009, http://www.jpost.com/servlet/Satellite?cid=1245924932645&pagename=JPost%2FJPArticle%2FShowFull
[7] “Positive trend in economic indicators for the West Bank,” Ministry of Defense Coordination of Government Activities in Territories, November 2008, http://www.mfa.gov.il/NR/rdonlyres/C1A9F626-4E6C-4271-B598-41C911A793CF/0/WBEconomyNov2008.pdf
[8] “Positive trend in economic indicators for the West Bank,” Ministry of Defense Coordination of Government Activities in Territories, November 2008, http://www.mfa.gov.il/NR/rdonlyres/C1A9F626-4E6C-4271-B598-41C911A793CF/0/WBEconomyNov2008.pdf
[9] “Positive trend in economic indicators for the West Bank,” Ministry of Defense Coordination of Government Activities in Territories, November 2008, http://www.mfa.gov.il/NR/rdonlyres/C1A9F626-4E6C-4271-B598-41C911A793CF/0/WBEconomyNov2008.pdf
[10] “Positive trend in economic indicators for the West Bank,” Ministry of Defense Coordination of Government Activities in Territories, November 2008, http://www.mfa.gov.il/NR/rdonlyres/C1A9F626-4E6C-4271-B598-41C911A793CF/0/WBEconomyNov2008.pdf
[11] “Supporting Palestinian Capacity Building: Israel’s Efforts in Supporting the Palestinian Economy, Security Reforms and Civil Affairs,” Report of the Government of Israel to the Ad Hoc Liason Committee, June 7-8, , http://www.mfa.gov.il/NR/rdonlyres/1FFAE064-4230-41EA-A6A7-50EF5760556D/0/AdHocLiaisonJune.pdf
[12] “Positive trend in economic indicators for the West Bank,” Ministry of Defense Coordination of Government Activities in Territories, November 2008, http://www.mfa.gov.il/NR/rdonlyres/C1A9F626-4E6C-4271-B598-41C911A793CF/0/WBEconomyNov2008.pdf
[13] “Positive trend in economic indicators for the West Bank,” Ministry of Defense Coordination of Government Activities in Territories, November 2008, http://www.mfa.gov.il/NR/rdonlyres/C1A9F626-4E6C-4271-B598-41C911A793CF/0/WBEconomyNov2008.pdf
[14] “Positive trend in economic indicators for the West Bank,” Ministry of Defense Coordination of Government Activities in Territories, November 2008, http://www.mfa.gov.il/NR/rdonlyres/C1A9F626-4E6C-4271-B598-41C911A793CF/0/WBEconomyNov2008.pdf
[15] “Positive trend in economic indicators for the West Bank,” Ministry of Defense Coordination of Government Activities in Territories, November 2008, http://www.mfa.gov.il/NR/rdonlyres/C1A9F626-4E6C-4271-B598-41C911A793CF/0/WBEconomyNov2008.pdf
[16] “Palestinian Central Bureau of Statistics Press Release: Economic Forecasts for ,” http://www.pcbs.gov.ps/Portals/_pcbs/PressRelease/forecast_e.pdf. Accessed on June 25
[17] “Positive trend in economic indicators for the West Bank,” Ministry of Defense Coordination of Government Activities in Territories, November 2008, http://www.mfa.gov.il/NR/rdonlyres/C1A9F626-4E6C-4271-B598-41C911A793CF/0/WBEconomyNov2008.pdf
[18] “Palestinian Economic Bulletin,” The Portland Trust, December 2008, http://www.portlandtrust.org/Bulletin%20Issue%2027%20December%202008.pdf
[19] “Palestinian Economic Bulletin,” The Portland Trust, December 2008, http://www.portlandtrust.org/Bulletin%20Issue%2027%20December%202008.pdf
[20] “Palestinian Economic Bulletin,” The Portland Trust, December 2008, http://www.portlandtrust.org/Bulletin%20Issue%2027%20December%202008.pdf
[21] “Report of the Government of Israel to the Ad Hoc Liaison Committee,” Report of the Government of Israel to the Ad Hoc Liaison Committee, June 7-8, , http://www.mfa.gov.il/NR/rdonlyres/1FFAE064-4230-41EA-A6A7-50EF5760556D/0/AdHocLiaisonJune.pdfe
[22] “Report of the Government of Israel to the Ad Hoc Liaison Committee,” Report of the Government of Israel to the Ad Hoc Liaison Committee, June 7-8, , http://www.mfa.gov.il/NR/rdonlyres/1FFAE064-4230-41EA-A6A7-50EF5760556D/0/AdHocLiaisonJune.pdfe
[23] “Future economic relations between the Palestinian and Israeli economies,” Palestine International Business Forum, December 2007, http://www.pibf.net/pdf/research.pdf
[24] “Report of the Government of Israel to the Ad Hoc Liaison Committee,” Report of the Government of Israel to the Ad Hoc Liaison Committee, June 7-8, , http://www.mfa.gov.il/NR/rdonlyres/1FFAE064-4230-41EA-A6A7-50EF5760556D/0/AdHocLiaisonJune.pdfe
[25] “Organization: Background,” Israel Diplomatic Network, accessed June 30, 2009, http://mashav.mfa.gov.il/mfm/web/main/document.asp?SubjectID=16241&MissionID=16210&LanguageID=0&StatusID=0&DocumentID=-1
[26] “Report of the Government of Israel to the Ad Hoc Liaison Committee,” Report of the Government of Israel to the Ad Hoc Liaison Committee, June 7-8, , http://www.mfa.gov.il/NR/rdonlyres/1FFAE064-4230-41EA-A6A7-50EF5760556D/0/AdHocLiaisonJune.pdfe
[27] Yaghi, Mohammad, “PolicyWatch #1546: The PA Financial Crisis: Causes and Implications,” Washington Institute for Near East Policy, June 29, 2009, http://www.washingtoninstitute.org/templateC05.php?CID=3084
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