Economy Challenges

According to the World Bank’s 2013 Economic Report "(i) The structure of the Palestinian economy has deteriorated since the late 90’s as the value-added of the tradable sectors has declined, illustrated by the productivity of the agriculture and manufacturing sectors (ii) the quality of infrastructure in key sectors like water and transport is deteriorating and damaging economic productivity (iii) With high rates and duration of unemployment, many Palestinians of working age do not have the opportunity to develop on-the-job skills; increased employment in the public sector provided short-term relief, but this is unsustainable"

 Why ?

The Oslo Agreement did not leave any margin for Palestinians to build a proper economic policy. The Israeli government completely controls the Palestinian economy. It controls the water and energy sectors and boundaries. It collects custom taxes and transfers them to the PNA under vulnerable political conditions. Donors’ aid was ineffective in achieving sustainable development in Palestine, because this aid was directed to non-productive sectors like security and a large part of this aid served as management costs. Twenty years after Oslo, the Palestinian economy is in a critical situation.  For more information, please visit the following links:




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