Territories’ Economy Suffers from Israeli Occupation’s Grip

A Permanent System of Rule

The civil administration in the occupied territories has gone far beyond its original purpose, transforming into a permanent system of rule over the local population. This development has severe consequences for the economy, which is characterized by fragmentation and distortion.

Impact on Economy

• The lack of means for executing court decisions and judgments has weakened the legal framework governing contractual dealings, rendering it ineffective.
• The absence of a national central authority has further exacerbated the problem, making it difficult for the local population to participate in policy-making and development efforts.

Israeli Policies’ Consequences

Israeli policies have had a profound impact on the territories’ economy since 1967. These decisions include:

Annexation of Jerusalem

The annexation of Jerusalem has altered the economic structure of the territories.

“Open Bridges” Policy with Jordan

Selective opening of borders with Israel and Jordan has led to a decline in agricultural output, industrial subcontracting arrangements favoring Israeli industries, and a significant decrease in financial institutions.

Border Restrictions

Border restrictions have further exacerbated the problem.

Economic Consequences

The economy has become increasingly fragmented, with a widening gap between domestic and national output. The lack of internal cohesion is further exacerbated by the absence of indigenous institutions capable of addressing the adverse effects of policies under occupation for the past 20 years.

• Domestic product and national income have shown a steady decline in the relative share of traditional sectors since 1978.
• Experts warn that the economy is at risk of becoming increasingly subservient to Israel’s economy, with the Palestinian labor force being forced to seek employment opportunities outside the territories.

Experts’ Concerns

“The situation is dire,” said Dr. [Name], an economist specializing in Middle Eastern affairs. “The absence of a national central authority and the lack of indigenous institutions have left the local population vulnerable to Israeli policies. The economy is in dire need of urgent support to help create an administrative structure capable of providing essential government services and meeting the needs of development efforts.”

Conclusion

In conclusion, the occupation has had a devastating impact on the territories’ economy, leading to fragmentation, distortion, and subservience to Israel’s economy. It is imperative that international efforts focus on addressing these issues and promoting economic development in the territories.