São Paulo – The lack of access of Palestine to 61% of the land of the West Bank generates annual losses of US$ 3.4 billion to the economy of Palestine, as most of the land is farmland or rich in natural resources, pointed out the World Bank (IBRD) on Tuesday (8).
Named Area C, this land makes up a continuous strip that connects 227 smaller fully inhabited areas. “The densely populated urban areas of the West Bank usually command the most attention, but unleashing the potential from that ‘restricted land,’ –access to which is currently constrained by layers of restrictions – and allowing Palestinians to put these resources to work, would provide whole new areas of economic activity and set the economy on the path to sustainable growth," stated Mariam Sherman, IBRD director for the West Bank and Gaza Strip, in a press statement disclosed by the institution.
According to the study, the use of Area C for economic activities would have significant impact in development of business related to agriculture, to exploration of Dead Sea ore, extraction and mining of stone, construction, tourism and telecommunications. Other sectors, pointed out the bank, would also be benefited by the improvement in quality and in the greater demand for goods and services.
The World Bank recalls that, according to the Oslo agreement, of 1993, Area C should have been transferred gradually to Palestine by 1998, a transfer that never took place. Restrictions are imposed by the Israeli occupation.
The IBRD also shows that Palestine needs annual growth of 6% to absorb new workers and reduce the significant unemployment among youths, the reason for which the country needs new modes for growth and creation of work posts.
“However, the Palestinian economy, which currently relies on donor financed consumption and suffers from ongoing stagnation of the private sector, is unsustainable,” states the report. If the development of business and farming was allowed in Area C, this would increase the GDP of Palestine by 35%.
The greater economic activity of Palestine also improves the fiscal position of the country. The world bank estimates that government revenues would increase by US$ 800 million, which would reduce the fiscal deficit by half, resulting in the reduction of the need for donations and also in unemployment and poverty rates.
“Access to Area C will go a long way to solving Palestinian economic problems,” said Sherman. “The alternative is bleak. Without the ability to utilize the potential of Area C, the economic space will remain fragmented and stunted. Lifting multiple restrictions could transform the economy and substantially improve prospects for sustained growth,” added the executive.
*Translated by Mark Ament
