Civil Administration Falls Short, Economic Performance Stagnates

The civil administration established by Israel in the occupied territories has failed to meet the needs of the local population, and its shortcomings have been exacerbated by a weak and fragmented system of government.

Judicial System Under Strain

According to recent data, the local courts are severely constrained in their ability to execute court decisions and judgments, weakening the legal framework that governs contractual dealings. This has led to a lack of trust in the judicial system and hindered economic development.

• The inability of the courts to enforce decisions and judgments has created uncertainty and instability in the business environment.
• As a result, investment and economic growth have been negatively impacted.

Economic Decline

The economy of the territories has seen a decline in its contribution to gross national product (GNP) over the past decade. The traditional sector, which was once a significant contributor to the economy, has seen a rapid decline in its relative share.

• Israeli policies, including the annexation of Jerusalem and the selective opening of borders with Israel, have played a significant role in this stagnation.
• The distortion in the structure of output and income has led to a widening gap between domestic and national output.

Agricultural and Industrial Challenges

In agriculture, Israeli policy has led to:

• Expropriation of land
• Restrictions on crop growth and export
• Control over water resources

Industry has been transformed into ancillary industries catering to the needs of Israeli businesses through subcontracting arrangements. The closure of local banks and financial institutions has deprived the economy of its prime source of finance.

Urgent Need for Reforms

Experts say that urgent support is needed to create an administrative structure with capabilities at various levels aimed at providing usual government services and meeting the administrative needs of development efforts. Without significant reforms, the economy of the occupied territories risks remaining stagnant, perpetuating poverty and unemployment among the local population.

• The absence of indigenous institutions capable of addressing the adverse effects of Israeli policies over the past 20 years has exacerbated the situation.
• It is essential to create an administrative structure that can provide support to the local population and foster economic growth.