Economy Of Palestine Essay, Research Paper
Economy has lost 790 million. This is equivalent to 20% of projected GDP for the year 2000.
Investors have been detracted from Palestine due to blockade and due to poor resources in the country. Unless things change investors will not change their minds. It means it will be very difficult for business in Palestine to get any projects financed and major projects will be delayed.
If Sharon imposes border closures, import and export businesses will be seriously disrupted. It will be exceedingly difficult to bring imports into the Palestine territories and exports will also be held up at border crossings.
Perishable goods will rot as they did before when the Israelis imposed closures.
“There are many Palestinian workers in Israel who bring in an enormous amount of income. In 1996 when Benjamin Netanyahu was in power it was $500 million. It was almost double that in 1999 when things were much better.”
However, external aid is still a crucial part of the picture and, under the circumstances, the donor financing will presumably continue.
Poverty has increased by 50% since beginning of crisis. World Bank has released a report stating that 32% of Palestinians are below the poverty line.
100,000 Palestinians (23% of the workforce) depend upon work in Israel family income has evaporated. Purchasing power has decreased.