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Paleoeconomy becoming aid dependent, says World Bank
 (AKI) - The Palestinian economy is becoming increasingly aid dependent, and Israel's policy of border closures in the Gaza Strip is eroding the occupied territory's industrial backbone and paralysing its municipal services, a World Bank report warns.
Real per capita gross domestic product (GDP) is now 30 percent below its 1999 level as the economy shrinks and the population grows and grows and grows, according to the report on Palestinian economic prospects.
| Maybe if you knocked off a few more Dogmushes ... |
The report has been published amid growing concern over the occupied Palestinian territories' stability. Unemployment has reached nearly 30 percent, ...
| ... the other 70 percent work for the Gaza Tunnel Authority ... |
... and the percentage of those living below the national poverty line rose to 57 percent in 2006, according the UN.
The report noted that the Palestinian Authority has received 1.2 billion dollars in external budget support so far this year but requires another 650 million dollars and 300 million more in development aid. The figures highlight the fact that as Palestinian economy worsens, it is becoming more aid dependent, the report said.
Ninety-eight percent of its industrial operations have been shut down. Out of 3,900 industries, only 23 are still operating, showing the crippling economic effect of Israel's blockade on the Gaza Strip, according to the report.
| And Egypt's blockade. But most of all, their own stoopidity. |
"Closure of Gaza is also resulting in the collapse of the municipal sector. Municipalities, providing key services such as water, sewage, solid waste [disposal] etc. are facing a deep financial crisis," the report stated. "The impoverishment of the population and the near absence of private sector activities imply that municipalities are unable to collect fees for service provision and are unable to pay staff salaries."
Posted by: Fred 2008-09-19 |
