Israel, PA sign joint economic declaration
In London conference, representatives of Israel, Palestinian Authority back calls by business leaders to drive forward creation of economically, politically viable Palestinian state
They supported a joint declaration signed by Palestinian and Israeli private sector leaders that identified regulatory reform, private sector participation and security as keys to revitalizing the Palestinian economy.
It was signed and presented at a conference, entitled 'Promoting Economic Growth in the West Bank and Gaza through the Private Sector' and hosted by the British government and the World Bank.
Speaking at the London meeting, the British finance minister, Gordon Brown, hailed the declaration as a "historic step towards peace."
"Trade and economic cooperation are the economic foundation, not just for prosperity but for peace and security in this region," he added.
Britain, which holds the rotating presidencies of the European Union and Group of Eight rich nations, is a key player in getting the Palestinian Authority on its feet in anticipation of the creation of a Palestinian state.
'Insufficient action by PA to tackle corruption'
Tuesday's conference followed a meeting between Group of Seven finance ministers and their Israeli and Palestinian counterparts in London last week.
In London, the World Bank's vice president for the Middle East and North Africa region, Christiaan Poortman, said that bringing economic prosperity to the West Bank and Gaza was "one of the most important things" the world could do.
But he said that the Palestinian Authority had taken "insufficient action" to tackle corruption.
The director general of Israel's finance ministry, Yossi Bachar, said that a strong Palestinian economy was Israel's "mutual interest."
He added: "The necessary condition for the success of the (peace) process is that we have a growing sustainable (Palestinian) economy."
The Palestinian Minister of National Economy, Mazen Sinokrot, meanwhile acknowledged a "new turning point" in the quest for economic prosperity and welcomed the drive by the private sector.
'Lay the foundation for sustainable peace'
The declaration said that Israel's government, the Palestinian Authority and the international community "had critical roles in achieving sustainable development in the West Bank and Gaza."
It added: "An open and thriving Palestinian economy will help lay the foundation for a sustainable peace, and a sustainable peace will require an economically and politically viable, liberated and independent Palestinian state."
Last month, British Chancellor of the Exchequer Brown used a visit to Israel and the West Bank to discuss ways of regenerating the Palestinian economy battered by five years of violence.
While in the Middle East, Brown led an international effort to provide loans for small businesses in the Palestinian areas potentially worth USD 400 million.
Tuesday's declaration said that the Palestinian economy had to return to productive levels "commensurate with its economic capacity in order to generate employment, create prosperity and reduce poverty".
It added that "the private sector will be the driving force for economic growth and development."
