West Bank and Gaza : Area C and the Future of the Palestinian Economy
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Washington, DC
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The Palestinian economy has experienced
strong growth in recent years. 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 a region
known as Area C. This region constitutes about 61 percent of
the West Bank territory and was defined under the Oslo Peace
Accords as the area that eventually would be transferred to
the Palestinian Authority. Restrictions on economic activity
in Area C of the West Bank have been particularly
detrimental to the Palestinian economy. The Bank will focus
on direct, sector-specific benefits, and also indirect
benefits related to improvements in physical and
institutional infrastructure, as well as spillover effects
to other sectors of the Palestinian economy. The sectors
examined are agriculture, Dead Sea minerals exploitation,
stone mining and quarrying, construction, tourism,
telecommunications, and cosmetics. Various physical, legal,
regulatory and bureaucratic constraints that currently
prevent investors from obtaining construction permits, and
accessing land and water resources will be lifted. Current
movement and access restrictions in force outside Area C
prevent the easy export of Palestinian products and inhibit
tourists and investors from accessing Area C. Further
reforms by the Palestinian Authority will better enable
potential investors to register businesses, enforce
contracts, and acquire finance. Area C is important to
future Palestinian economic development.
Palabras clave
ACCOUNTING, AGRICULTURAL FIELDS, AGRICULTURAL PRODUCTION, AGRICULTURAL PRODUCTS, AGRICULTURE, AREA, BANKING SERVICES, BENCHMARK, BENCHMARKS, BLUE, CENTER, CENTRE, COMMAND, COMPETITIVE ADVANTAGE, COMPETITIVENESS, CONSTRUCTION, CONSTRUCTION ACTIVITIES, CONSUMER PRICE INDEX, CONSUMERS, CONTIGUOUS, DEPOSITS, DEVELOPMENT AGENCIES, ECONOMIC ACTIVITY, ECONOMIES OF SCALE, EMPLOYMENT, EQUIPMENT, EXPECTED RETURNS, EXPORT GROWTH, EXPORTS, FARMERS, FINANCIAL SERVICES, FORECASTS, FOREIGN EXCHANGE, GDP, GEOLOGICAL SURVEY, GROSS DOMESTIC PRODUCT, GROWTH POTENTIAL, GROWTH RATE, HIGH LEVELS, HOUSING, HOUSING PRICES, INCOMES, INEFFICIENCY, INFLATION, LAND DEGRADATION, LAND PRICES, LIVELIHOODS, MARKET VALUE, MIDDLE INCOME COUNTRIES, MULTIPLIER EFFECT, NATIONAL ECONOMY, NATURAL RESOURCES, OPEN ECONOMY, OPPORTUNITY COST, PENALTIES, POSITIVE EFFECTS, POTENTIAL OUTPUT, PRIVATE PROPERTY, PRIVATE SECTOR, PRODUCTION COSTS, PRODUCTION INPUTS, PRODUCTIVITY, PUBLIC EXPENDITURES, PUBLIC SERVICES, REAL GDP, RESERVOIRS, SPRING WATER, TAKEOVER, TAX COLLECTION, TAX REVENUES, TELECOMMUNICATIONS, TEXTILES, TRANSPORT, UNDERESTIMATES, UNEMPLOYMENT, UNEMPLOYMENT RATES, UNION, URBAN SERVICES, VALUE ADDED, WAGES, WASTEWATER, WASTEWATER TREATMENT, WATER RESOURCES, WATER SUPPLY, WELLS