2. Longstanding financial problems in the OPT •
have nothing to do with structural
problems that can be “adjusted.” Rather, they •
are the direct result of the occupation.
Economist Raja Khalidi •

4. I. Occupation, sovereignty and
development
The successive Israeli governments are the overriding •
determinants of Palestinian economic performance and
developmental Prospects
* integration of the P. economical •
resources (especially land, water and labour) into •
Israel’s “mainland” economy.
marginalization and isolation the economy and •
markets of the OPT.
•

5. II. Israeli policies towards the
Palestinian economy in the 1980s
A. The careful integrationism of the early 1980 •
B. The mirage of power-sharing: “condominium” •
and “devolution” in the mid-1980s •
C. The first intifada, 1988: emergence of indigenous •
Palestinian
economic initiatives and Israel’s selective integration •
strategies

6. III. Israeli policies of the early
1990s:the Gulf War and separation
neglect of Palestinian development needs •
inducements for individual prosperity •
Preventing competition with Israeli economic •
interests
“costs and benefits debates ” •

7. “There is no change in policy but there is a •
new approach…. Instead of having the workers
from the territories come to factories in
Israel, we want those factories to go to the
territories.
“separation strategy”, •
“The less of them [Palestinians] that will work •
in Israel,
the better •
•

8. IV. The Paris Protocol: a quasi customs
union
The Israelis told the Palestinians: “You shut up •
during the intermediary period and we
let your workers work in Israel.” •

9. The “skewed integration” of the 1990s:
development under occupation?

10. The reason for this abnormal pattern
*The accumelated economic strategies •
implemented since the start of occupation,
reinforced the effects of polarization and
diminished the spread effects.
comparative advantage, absolute advantage.

11. VI. The second intifada and the dysfunctional Paris
Protocol since 2001
October 2000 till the end of 2002 deep crisis •
2003-2005 gradual recovery •
Separation wall taking 86% agricultural •
land,water sources (10% of WB area)
Settlers 116300 in 1993 to 289600 in 2009 •
Halts in revenues transfere 2000-2002 and •
2006-2007

12. VII. Israeli “economic peace” or
a Palestinian economic strategy for peace?
WTO? •
Legal separation of the palestinian economy •
Resolving trade disputes within the rules •
based disciplines
Help to shape the sovereign national economy •
This is better than Accommodating strategies •

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