Economic development in the West Bank has largely been used as an indication that rejecting terrorism and accepting Israel’s legitimacy can transform Palestinian society into a viable independent state. The economic situations in the West Bank and Gaza Strip differ substantially, in part because the Gaza Strip has no economy, complicated by the closure of its borders by Israel due to security threats.
A new report from the West Bank highlights discrepancies between the West Bank and the Gaza Strip, noting that insititution building is a critical component to improving the Palestinian economy and living situation. Palestinian Prime Minister Salam Fayyad has spearheaded efforts to develop economic, social, and security institutions that would help fuel development and eventually enable the Palestinians to unilaterally declare independence and statehood.
The report stresses the importance of private sector development and also notes that the Palestinian government is still desperately in need of financial assistance and will continue to be for some time.
It’s an interesting report and worth a read.
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