Best hope for Palestinian economic growth, a political solution with Israel

Fri, 10 Aug 2012 11:17:00 -0500

Palestine's economy suffers under the weight of the long-running Israeli occupation. And while it's resumed growth, that growth is tied to foreign aid. Economists say to achieve true stability, it needs a vibrant private sector economy -- and that requires a peace agreement with Israel.

Michael Greenwald

Fri, 10 Aug 2012 21:36:04 -0500

The biggest impediment to the West bank economy is not the Israeli occupation, it is the refusal of the Palestinians not only to negotiate a settlement but their inability to paint the Israelis as anything but the enemy. How can a people possibly expect to have an economy while simultaneously waging an asymmetric war against a state that completely surrounds them?

It is in fact their own intransigence that hinders their development. The West Bank suffers from a shortage of capitol, yet they are surrounded by wealthy Israelis who would be glad to form business partnerships with them, which would not only capitalize their ventures but open many doors to sales. Yet the Palestinian hatred of the Israelis prevents such options.

A recent World Bank report notes, Israeli restrictions do hinder Palestinian private sector growth significantly, but it is clear that there has been a good degree of mismanagement on the part of the Palestinian leadership and a growing number of Palestinians in the West Bank are becoming aware of this fact. There is not some talk of a new intifada, but it will be waged against the PA, not Israel.

PRI: Public Radio International

Best hope for Palestinian economic growth, a political solution with Israel

Michael Greenwald