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Palestine: World Bank exposes PLO's disastrous miscalculations

By David Singer - posted Tuesday, 15 October 2013


That is the PLO's prerogative - but it has come at a heavy political and economic cost.

The World Bank report confirms this gloomy assessment:

Access to Area C will not cure all Palestinian economic problems - but the alternative is bleak. Without the ability to conduct purposeful economic activity in Area C, the economic space of the West Bank will remain crowded and stunted, inhabited by people whose daily interactions with the State of Israel are characterized by inconvenience, expense and frustration.

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Regrettably those affected by the PLO's political stance - the West Bank Arab population - are denied any say in determining whether changes need to take place that would improve their economic and political fortunes.

PLO Chairman Mahmoud Abbas refuses to hold elections in the West Bank - preferring to continue with failed policies that threaten the future aspirations of the people he claims to represent - so clearly exposed in this damning World Bank Report.

Abbas continues to travel the world's capitols unsuccessfully seeking financial support whilst an ailing economy collapses before his very eyes - as the World Bank Report makes ominously clear:

Recent growth rates are proving unsustainable, however. Growth in recent years has been driven largely by extraordinary levels of donor budget support, which amounted to USD 1.8 billion, or 29 percent of GDP, in 2008. This fuelled a significant expansion in consumption, particularly the consumption of valuable public services such as policing, education and health (the share of public administration, education, and healthcare in GDP increased from 19 to 26 percent between 1994 and 2011). By 2012, however, budget support had decreased by more than half, and growth rates had declined from 9 percent in 2008-11 to 5.9 percent by 2012 and 1.9 percent in the first half of 2013 (-0.1 percent in the West Bank).

International donors financial support is running out - as is PLO peace treaty signing time - as is the continuing disenfranchisement of the West Bank Arabs.

An explosive cocktail indeed.

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About the Author

David Singer is an Australian Lawyer, a Foundation Member of the International Analyst Network and Convenor of Jordan is Palestine International - an organisation calling for sovereignty of the West Bank and Gaza to be allocated between Israel and Jordan as the two successor States to the Mandate for Palestine. Previous articles written by him can be found at www.jordanispalestine.blogspot.com.

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Creative Commons LicenseThis work is licensed under a Creative Commons License.

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