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Ron Ben-Yishai

The PA’s economic revival

West Bank economy flourishing, with Israel’s help; but will prosperity avert Palestinian upheaval?

During the first and second Intifada, Christians left Bethlehem en masse and sought a better future overseas. Now, some are coming back, although not in great numbers. Meanwhile, the tourists and pilgrims are returning to Bethlehem, big time. More than half a million foreign tourists visited the town in 2010, most of them pilgrims. Some half a million visited Jericho during the same period. This year, some 500,000 tourists already visited Bethlehem and more are coming.

 

It is no wonder that 12 new hotels had been built in Bethlehem in the past two years, and more are in the works. We should also keep in mind that many of these tourists spend their nights in Israeli hotel rooms and tour Christian holy sites in Israel. Hence, Israel’s economy also gains.

 

However, the real economic boom in the Palestinian Authority in recent years is taking place not in Bethlehem, but rather, in northern Samaria – in the Jenin-Nablus region that up until five years ago was a murderous terrorism stronghold. This revival is fueled by Arab Israelis who head there en masse and buy everything they can get their hands on – food, furniture and household items – for up to half price compared to Israel. One of the main reasons for this is the ridiculously low taxes imposed on goods by the PA.

 

A large portion of the goods makes its way to Arab shops and malls in northern Israel (after paying duty at the Gilboa Crossing) and is sold for discounted prices. This is how fresh Samaria cucumbers have become a big hit in Israel and even in Europe. During the cucumber season, which ended some two weeks ago, and on the recommendation of the government coordinator in the territories and the Civil Administration, the crossing was kept open daily until late hours of night in order to enable the transfer of tons of fresh cucumbers directly to the Israeli market and to export markets.

 

Israeli cooperation

And that’s not all. Motorists in northern Samaria cannot but be impressed by the intensive development works aimed at improving the roads (funded by the European Union); meanwhile, shiny Mercedes vehicles can be spotted at a Jenin car lot; near the city, the American University is being built; and an amusement park and hotel were built on a hill overlooking the city. Elsewhere, the construction of the new Palestinian city of continues north of Ramallah, while new industrial zones are taking shape in Bethlehem (a French venture,) Ramallah and elsewhere.

 

Israel wants to help. Brigadier General Moti Almoz, who heads the Civil Administration, says that “the economic wellbeing has a moderating effect on the Palestinians and therefore we must make it as easy as possible for them to move freely within Judea and Samaria and beyond.” Other top army officials think the same, are attentive to Palestinian requests, and aim to minimize the security friction vis-à-vis the civilian population as much as is possible.

 

However, we must keep in mind that the PA economy is still tiny compared to Israel’s; the average Gross National Product is barely $12 billion, compared to $200 billion in Israel. The Palestinian Authority is only able to fund about one third of its annual budget through taxes. The rest comes from donor nations. This year, some of these funds are late in coming, prompting a 50% reduction in salaries in the inflated public sector (which includes some 150,000 people in the West Bank and Gaza.) This is forcing many families to go into debt and may lead to major upheaval against the PA – especially against the backdrop of the Ramadan fast.

 

Moreover, out of some 2.4 million Palestinians in the West Bank, about 65% are under the age of 25. Many of them are educated. Out of them, more than one-third is unemployed. This is exactly the same socioeconomic explosive material that provoked the uprisings in Tunisia, Egypt and Syria. Abbas and Salam Fayyad are aware of it. They now fear upheaval that would turn the people on the street against them.

 

 


פרסום ראשון: 08.02.11, 19:03
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