And do you know why the Palestinians hard;y produce anything ?? Here are some of the reasons : The Palestinians have no ports with which to import or export, according to their own terms. Currently the Palestinians have to make do with using the Israeli ports, and by doing so they incur a standard fee of 7-14 'security screen' delay, which costs in terms of lost opportunities, and port fees for having their goods delayed for 7-14 days. This affects all goods going to the PA, but in this context, it has a devastating impact on the import of machinery, raw materials, and any other items required by the Palestinians to build factories. Tariffs and excise fees imposed on imported goods heading to the PA are the same as Israeli. Which are design to protect the Israeli Economy, which is at least, 10 times as strong as the PA's, eliminating any chance the Palestinians have to make use of their low cost of living and cheap labor . And even if the Palestinians what to change that, they can't as it is stated in the economic protocol of the Oslo peace accord, "AKA Paris Protocol" that the Palestinian Excise and Tariffs should remain within 2% margin (+ / - ) of the Israeli tariffs and excise fees. Due to the overcrowded "A" areas, in which the PA can exercise full control, new factories have to be build in either area B or C, at which point they need Israeli permits to do so, which for some very strange reason, they rarely do. An thus, the Palestinians really have no chance of ever being able to mass produce anything sufficient enough to make an impact on their economy. Furthermore, the donor countries are aware of this fact, and that's why they continue to pump money to the PA.

the writer purposefully ignores a choking factor on thePalestinian economy, it is called Israel's occupation of Palestine. - Israel is stealing the land - Israel is stealing the water - Israel is blocking access - Israel is controlling borders -Israel has veto powers on productive projects - Israel dumps its low quality goods in the Palestinian market - Israel gets no less thatn $10bn in direct and indiect aid from abroad so save us your wisdom Mr. Trengo. Just get off the Palestinians back and stop breathing down their throats.

Who reads this article and does not know where is Palestine would think that the writer talks about the state without any kind of problems people in it can build a strong economy, there is no occupation, no settlements and no separation wall no taxes and it is allowing anyone to build what he wants and wherever he wants and dont ask about the export and import, israel allowed it without any scrutiny or inspection. The issue for the author is Hamas, which is really a problem, but I think that when talking about the Palestinian economy, and to believe what in this stange analysis, the authors had to say at least the Israeli occupation

We tell Fayyad continue with your responsible and transparent management of public funds (donations or otherwise). Continue your great infrastructure projects. Industry and investment will follow up. Keep resolved Dr. Fayyad, we're behind you 100%. Don't let these idiot cynics Avi Trengo distract you. They've forgotten who brought about Israel and who is still bank-rolling it.

Its not hard to increase disposable income when somebody else is giving it to you as a hand out. If I win the lottery should I be congratulated for my change in fortune or called just lucky I bought the winning ticket? As for Fayyad being the palestinian Ben Gurion he hasn't shown himself a capable leader of a real state that has to deal with real problems. Right now he runs a virtual state that gets its money and UNRWA. Ben Gurion never ruled over a virtual state, he only became PM when the real state came into existence. After Arafats corruption its not exactly hard to say you have improved things when you make reforms. Peres had no right to introduce him in Herzliya as palestinian Ben Gurion. He can welcome the man but as Israels president he has no business comparing him to Israels PM.

Israeli Arabs are a large part of the miracle . They shop at Nablus, Jenin - the PA gets the VAT yet the goods are used in Israel. Lost money for Israel and more money to the corrupt PA.

The Palestinians "car theft industry" is a booming multi-million biz so don't forget about that

Why is Israel collecting over 40% of the PA budget ? Where does he get the other 60% from ? the EU ? US ? Arab donors ?

The Palestinian economy is totally controlled by Israel, we have complete control over all Palestinian imports and exports. If we wish we can destroy the Palestinian economy in the West Bank as we have done in the once-thriving Gaza Strip. They cannot live without the help of Israel. They need us more than we need them.

He should have pointed out a very important fact. That the economy of the Palestinians fell dramatically at one point in time.... Anyone want to guess when it was? When the PA was introduced and Arafat took power. The time before saw economy in Judea, Samaria, and Gaza booming. Then as Arafat came and corrupted everything, he literally transformed a work economy to a terror economy. Surprisingly this economy has now crashed. The major problem with this argument over a Palestinian state is that we as Israeli's are arguing the wrong points, especially when trying to use pious reasoning. While valid, it is only an internal Israeli matter. What we must argue and point out vociferously is what kind of state will 'Palestine' be? Will Homosexuals be allowed? Will Women have equal rights? Will there be respect for other religions & minorities ,and other religions sacred sites? Will this be a state where people will have the right to free speech? Will tolerance even exists in this society? And to sum it up, will it even reflect a western society in the remotest terms? The answer to all these questions is 'NO', and this is why we should not allow such a luciferean birth to occur.... And this is the question we must now ask loudly! It's not about creating a state, but what kind of state will we (better stated Europe) be creating?

be in the same shape as Syria, Jordan, Egypt and beyond. In addition to Israeli contribution to the economy of the PA in investments, advise and labor, the international community provides it with actual cash in the form of gra ants that few if any territories worldwide are the recipients of such amounts per capita. Some in Ramallah may conclude: It's good business the way things are so why change them to the point of deterioration and become an economy similar to that of Gaza or Somalia?

And why in the world should they produce anything, or even use their brains, when for many years the world has been pouring money into these entities? Their continuous status of "poor underdog refugees" has provided them with plenty of sympathy and money. No wonder their leaders and the rich Arab countries don't do anything to get these people out of the "refugee" camps. It doesn't pay. With just the money which Arafat received he could have put each family in a villa, and provided them with education and livelihoods. Who knows where all that money has disappeared to??????

Palestinians' economy would be their problem

UNWRA was set up in 1948 to support the "Palestinian". No other people in the world have such an organization. There was no occupation until 1967. If you stop blaming Israel and focus on yourown problems you will make progress. You can import goods through Akaba and truck them through Jordan. Egypt can help you import via its border with Gaza. Where there is a will there is a way. Do the Palestinians have to will to be independent and stop blaming Israel.

Post # 11 was not written by me.

I forgot to mention that the Palestinian economy was doing fine before the creation of Israel and I am surprised that it has managed to exist in any form under Israeli occupation. Imagine if it were not for Israel the Palestinian Authority would have a thriving economy free of Israeli interference.

The economies of Gaza and the West Bank (Judea/Samaria) thrived in the first decades (1967-1987) of that so-called occupation. Aside from UNRWA, little outside aid entered the territories. Yet under Israel's security umbrella and open borders, the areas thrived. Those who get their "history" from the Palestinians ignore how much Israel invested in their infrastructure - water and sewage lines, electricity, schools and medical facilities - all of which were neglected under Jordanian and Egyptian rule. Infant mortality went down, average lifespan went up, agricultural output and average incomes skyrocketed. Then Palestinian "nationalism" came to the fore in the first intifada, but it took Arafat's arrival to really screw things up. The territories are now rife with welfare dependency, corruption and bloated non-productive bureaucracies.

TO EITAN, KATZRIN Whatever are you talking about? The Palestinian's economic situation was fine before the creation of Israel? There were Palestinians before the creation of Israel? Their economy was fine? Please explain. This is totally incoherent.

we hope yu Mr Trengo to be more honest with yourself in the second part

I dont understand you spoke like that , you who lived in golan heights under israeli sovereignty , and I want to tells you something that before june 1967 palestinians economy were controled by jordanian on cisjordania and egypt for gaza strip and for boths territorys firstly why arabs nations dont gave independance economic and etc.. because jordania and egypt have afraid of that and never have invest many moneys in infrastructure , its only after june 1967 that israel has invest fully infrastructure as electricity , water , roads etc .. and I want to tells you something "never has existed a palestinian people because are invented people , this one are a mixture of arabs people of middle east § I am upset than have israelis like you speaking "good on this bladdy people guilty of murderers on israelis jews "did you forget that ?? and why did you lived in golan if you are leftists I am sure you are one !! sorry may be you will be not happy but yehuda , shomron gam gaza are parts fully members of eretz israel and israel will stays there forever - abou mazen and his corrupts government must t be expelled to jordania "homeland of this palos where 80% citizens are origine from west side jordan river coast that muslims took us 2000 years ago and its normal the jewish people will recovers our land again !! am israel hay

why should the Arabs who claim the palestinian identity be any different?

What else would the Arabs do if they could not throw their typical Arab accusations at Israel? Do the Jews expect anything different from them? The good thing that at least they have learned to read the Zionist press.

Take away the 'Free Palestine from occupation' rhetoric and basically what you are saying is that the Palestinian economy is hampered by the existence of a neighbor, against whom you declared a war. Yes, things would just bloom, if only the Jews would disappear. Voila - unfettered access to the sea, no more security barriers, checkpoints. All the uses you could put the 'liberated' lands to, the houses and apartments you could take over. Well, sorry guys, no can do. What YOU CAN do is repeal the genocidal charters calling for the destruction of Israel; stop the incitement, propaganda and hate education, perhaps replace them by incentives, information and humanities/technical/scientific education; stop all vicious attacks against your neighbor (military, terrorist, legal, propaganda, cultural, etc.); address the siphoning of funds for personal and terrorist uses - and watch what happens! Here is one possible scenario. A prosperous economic commonwealth with minimal trade barriers, productive workforce, functioning financial institutions, political stability that would attract foreign investment, tourism, excellence in education, scientific research, health and well being of the population. This is all possible and is a win-win for everyone (except for the various quasi-Mafia terror organizations that run the Palestinian Arab society). It is called a peace dividend and you may claim it anytime by stopping attacks against your neighbor. If you choose to continue the present course, however, there is no one you can blame but yourselves. You wish for our destruction and pursue every means to that end, so what do you expect?

because you are a fiction, you are part of the Arab nation to which you will go back soon if Israel relinquishes any part of Jewish land it will become Southern Syria or Northern Arabia, never independent Gaza is propped up by Iran and dependent on Egypt We know it, you know it and the entire Arab nation knows the truth, stop lying non-stop When you will admit it there will be a chance for Peace by opening all borders of the Middle East for redividing it between its native peoples, Kurds, Persians, Druzee, Maronites, Arameans, Armenians, Copts, Darfurians and Jews. Arabs will have to go back to Arabia.

As someone who lives in Israel, I know that our country is far from perfect. Such a shame that Israel still has to put so much effort into having to defend itself from all the peoples in this region. It seems that the Arab peoples will never ever accept the existence of this state...and so the source of how Israel has to act sometimes. Pipedream: Israel is suddenly accepted and wonderful economic ties are formed with all the peoples living here. MIddle East becomes richer and more powerful than Europe and the USA.... hmm.....I guess the powers that be will never let that happen....

Eitan is actually written by an impostor. The posting is not Eitan's style nor are the views expressed. This has been going on for several weeks now and is meant to confuse people like yourselves. I have written and complained to the staff of Ynet but it (staff members) do not seem to recognize its importance. Frankly, the Talkback section is being severely damaged by impostors. You or any other Talkbacker can email your concerns to: service@y-i.co.il and/or editor-in-chief@y-i.co.il and/or help@y-i.co.il and/or news@ynetnews.com.

to whoever is attempting to undermine his argument. Eitan, don't give up since you shed much light on the subject and its various elements, light that anti-Israeli and anti-Jewish forces wish to turn off.