Area C and the Future of the Palestinian Economy

Niksic, Orhan; Eddin, Nur Nasser; Cali, Massimiliano

Area C and the Future of the Palestinian Economy

Autores

Niksic, Orhan

Eddin, Nur Nasser

Cali, Massimiliano

Editor

Washington, DC: World Bank

Descripción

Restrictions on economic activity in area C of the West Bank have been particularly detrimental to the Palestinian economy. Area C constitutes about 61 percent of the West Bank territory. Area C is richly endowed with natural resources and it is contiguous, whereas areas A and B are smaller territorial islands. Mobilizing the area C potential will help a faltering Palestinian economy. Since area C is where the majority of the West Bank's natural resources laid, the impact of these restrictions on the Palestinian economy has been considerable. Thus, the key to Palestinian prosperity continues to lie in the removal of these restrictions with due regard for Israel's security. This report shows that rolling back the restrictions will bring substantial benefits to the Palestinian economy and can usher in a new period of increasing Palestinian gross domestic product (GDP) and substantially improve prospects for sustained growth. This report examines the economic benefits of lifting the restrictions on movement and access as well as other administrative obstacles to Palestinian investment and economic activity in area C. It focuses on the economic potential of area C and does not prejudge the status of any territory which may be subject to negotiations between Palestinians and Israelis. The authors examine potential direct, sector-specific benefits, but also indirect benefits related to improvements in physical and institutional infrastructure, as well as spillover effects to other sectors of the Palestinian economy. Realizing the full potential of such investments requires other changes as well - first, the rolling back of the movement and access restrictions in force outside area C, which prevent the easy export of Palestinian products and inhibit tourists and investors from accessing area C; and second, further reforms by the Palestinian authority to better enable potential investors to register businesses, enforce contracts, and acquire finance.

Palabras clave

ACCOUNTING, AGRICULTURE, AREA, BANKING SERVICES, BARRIER, BARRIER TO ENTRY, BENCHMARK, BENCHMARKS, BINDING CONSTRAINT, BLUE, CAPITAL INVESTMENT, CENTER, CENTRE, COLLATERAL, COMMAND, COMMODITY, COMMODITY PRICE, COMPETITIVE ADVANTAGE, COMPETITIVENESS, CONSUMER GOODS, CONSUMER PRICE INDEX, CONSUMERS, CONTIGUOUS, COUNTRY MARKETS, DEPOSITS, DERIVATIVES, DESTINATION, DEVELOPMENT AGENCIES, ECONOMIC ACTIVITY, ECONOMIC DEVELOPMENT, ECONOMIES OF SCALE, ENVIRONMENTAL IMPACT, EQUIPMENT, EXPECTED RETURNS, EXPORT GROWTH, EXPORTER, EXPORTS, FINANCIAL SERVICES, FISCAL DEFICIT, FORECASTS, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FREEDOM OF MOVEMENT, GEOLOGICAL SURVEY, GROSS DOMESTIC PRODUCT, GROWTH POTENTIAL, GROWTH RATE, GROWTH RATES, HOUSING, HOUSING PRICES, INCOME, INEFFICIENCY, INFLATION, INFORMATION TECHNOLOGY, INFRASTRUCTURE DEVELOPMENT, INFRASTRUCTURE PROJECTS, INSTITUTIONAL INFRASTRUCTURE, INTERNATIONAL BANK, INVENTORY, INVESTING, INVESTMENT CLIMATE, INVESTMENT RATES, INVESTOR CONFIDENCE, JOINT VENTURES, JURISDICTION, LAND PRICES, LAW ENFORCEMENT, LEGAL AGREEMENTS, MARKET VALUE, MIDDLE-INCOME COUNTRIES, MIDDLE-INCOME ECONOMIES, MONETARY FUND, MULTIPLIER EFFECT, NATIONAL ECONOMY, NATURAL RESOURCE, NATURAL RESOURCES, OPEN ECONOMY, OPPORTUNITY COST, OUTPUTS, PENALTIES, POSITIVE EFFECTS, POTENTIAL INVESTMENTS, POTENTIAL INVESTORS, POTENTIAL OUTPUT, PRIVATE CAPITAL, PRIVATE INVESTMENT, PRIVATE PROPERTY, PRIVATE SECTOR GROWTH, PRODUCTION COSTS, PRODUCTION INPUTS, PRODUCTIVITY, PUBLIC EXPENDITURES, PUBLIC INVESTMENTS, PUBLIC SERVICES, RAPID GROWTH, RATE OF GROWTH, REAL ESTATE, REAL ESTATE INVESTMENT, REAL GDP, REAL GROSS DOMESTIC PRODUCT, REFORM PROGRAM, RESERVE, RESERVES, RETURN, SECURITY CONCERNS, SECURITY CONTROL, SECURITY RISK, SETTLEMENT, TAKEOVER, TAX, TAX COLLECTION, TAX REVENUES, TELECOMMUNICATIONS, TELECOMMUNICATIONS INFRASTRUCTURE, TRANSPORT, UNDERESTIMATES, UNEMPLOYMENT, UNEMPLOYMENT RATES, UNION, URBAN SERVICES, VALUE ADDED, VOLATILITY, WAGES, WATER SUPPLY