UN bemoans unsustainable Palestinian economy

A Palestinian protestor covers his nose with a piece of cloth on the beach near the maritime border with Israel (background), in the northern Gaza Strip, during a demonstration calling for the lift of the Israeli blockade on the coastal Palestinian enclave, on September 10, 2018. (AFP)
Updated 12 September 2018
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UN bemoans unsustainable Palestinian economy

  • It said unemployment in the Palestinian territories was the highest in the world in 2017, at 27.4 percent
  • Half of Palestinians under 30 were unemployed. The economy grew 3.1 percent but was flat on a per capita basis

GENEVA: Palestinian citizens are trapped in an economy of jobless growth with no prospects, especially in Gaza, which is undergoing “de-development,” the United Nations trade and development agency UNCTAD said in an annual report published on Wednesday.
It said unemployment in the Palestinian territories was the highest in the world in 2017, at 27.4 percent, while agricultural production fell by 11 percent. Half of Palestinians under 30 were unemployed. The economy grew 3.1 percent but was flat on a per capita basis.
“Every year the situation becomes more and more unacceptable and difficult,” UNCTAD Deputy Secretary-General Isabelle Durant told a news conference in Geneva, describing the economic situation as “absolutely unsustainable.”
A customs union between Israel and the Palestinian territories has isolated the Palestinian economy from the rest of the world and left it dependent on Israel, the report said.
“The major reason for this dark situation from the economic development point of view is a set of Israeli restrictions,” Mahmoud Elkhafif, coordinator of the report, said.
“These measures include permit systems for Palestinians to work in Israel, you have road blocks in the West Bank, you have earth mounds, trenches, road check points, gates and separation barriers.”
In Gaza, where real incomes have fallen 30 percent since 1999 and production capacity has been hit by successive military operations, households got an average of two hours of electricity daily, and only about 10 percent had drinking water.
“It is de-development, it is not development,” Elkhafif said.
Hamas, an Islamist movement designated a terrorist group by Western countries and Israel, seized control of the territory in 2007 following a brief civil war with forces loyal to Mahmoud Abbas, the Western-backed Palestinian president based in the West Bank.
Israel withdrew its troops and settlers from Gaza in 2005, but, citing security concerns, maintains tight control of its land and sea borders. Egypt also restricts movement in and out of Gaza on its border.
Abbas’s Palestinian Authority has also sought to use financial measures to isolate Hamas, last year slashing the salaries of thousands of government workers in Gaza by 30 percent.
Total international support dropped significantly, from $2 billion in 2008 to $720 million in 2017.
A further blow came this month when US President Donald Trump halted funding for the UN Palestinian refugee agency UNRWA, leaving a $200 million gap.
Durant said it was too early to assess the impact of the US move, and she hoped European or other donors might at least partially make up the shortfall.


8 EU countries urge Israel to reconsider village demolition

It rebuked the Israeli High Court’s Sept. 5 decision to demolish the desert community. (AP)
Updated 10 min 33 sec ago
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8 EU countries urge Israel to reconsider village demolition

  • The eight countries are France, Netherlands, Poland, Sweden, United Kingdom, Belgium, Germany and Italy

UNITED NATIONS: Eight European Union nations are underlining their opposition to Israel’s planned demolition of the Palestinian village of Khan Al-Ahmar and are urging its government to reconsider the decision.
The statement was read by Dutch Ambassador Karel Van Oosterom outside the UN Security Council on Thursday. It rebuked the Israeli High Court’s Sept. 5 decision to demolish the desert community.
The eight countries are France, Netherlands, Poland, Sweden, United Kingdom, Belgium, Germany and Italy. They say in the statement that they “will not give up on a negotiated two-state solution with Jerusalem as a capital” of both Israel and a new Palestinian state.
That was an implicit slap at US President Donald Trump’s declaration in December that contested Jerusalem is the capital of Israel.