Occupation’s Lasting Legacy: Weakened Administration and Stagnant Economy

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Twenty Years of Devastation in the Occupied Territories

JERUSALEM, OCCUPIED TERRITORIES - The Israeli occupation has had a profound impact on the administrative and economic fabric of the territories. Two decades of occupation have seen the civil administration fail to meet even the most basic needs of the population, while the economy has become increasingly fragmented and subservient to Israel’s.

A Weakened Administration

• The local courts, once independent and effective, are now severely constrained in their ability to enforce decisions and judgments due to a lack of resources.
• This has undermined the rule of law and created uncertainty for businesses and individuals alike.
• The absence of a national central authority has only exacerbated the problem, leaving the population without a voice in the design and implementation of policies and programs aimed at promoting economic and social development.

An Economy in Shambles

• Israeli policies have contributed to a shift in the structure of the territories’ economy.
• Agriculture has been expropriated, industries subcontracted out to serve Israeli interests, and financial institutions shut down or restricted.
• The result is an economy characterized by:
  • High fragmentation
  • Distortion in output and income
  • A widening gap between domestic and national output

Consequences for the Population

• The percentage of Palestinians seeking employment in Israel or abroad has grown rapidly, further eroding the territory’s economic base.
• The lack of indigenous institutions capable of dealing with the adverse effects of occupation policies is a major concern.

Urgent Support Needed

• “We need urgent support to create an administrative structure capable of providing basic government services and meeting the needs of development efforts.”
• International attention must be focused on the occupied territories, as the continued occupation is not only a humanitarian crisis but also an economic one, with far-reaching consequences for the people of Palestine and Israel alike.

The Future is Uncertain

• The Israeli authorities’ policies have led to a decline in the domestic contribution to gross national product.
• Traditional sectors such as agriculture and industry are struggling to compete with Israeli imports.
• The situation is dire, and it is imperative that international pressure be applied to end the occupation and promote economic development in the territories.