Israel’s Restrictions in West Bank Cost Palestinian Economy $3.4 Billion Annually, Report Finds

Jerusalem - A staggering $3.4 billion is lost annually by the Palestinian economy due to restrictions imposed by Israel in Area C of the West Bank, a report by Human Rights Watch (HRW) has found.

Devastating Impact on Livelihoods

The report highlights how Israeli settlement policies and land seizures have devastated the livelihoods of thousands of Palestinians in the region, driving up unemployment and poverty rates. Farmers in Area C are particularly hard hit, as Israel’s unlawful and discriminatory land and water policies have forced many to lose their traditional livelihoods.

Forced Labor and Unemployment

As a result, many Palestinians are left with little choice but to seek employment in settlements, providing a steady source of cheap labor for Israeli companies. The village council head of Marda, an agricultural village that lost much of its land to the Ariel settlement, told HRW:

“We used to have 10,000 animals, now you can barely find 100 because there is nowhere for them to graze. So the economy collapsed and unemployment increased.”

Recommendations

HRW recommends that companies operating in or with settlements cease such activities, including building housing units, extracting natural resources, or providing services, as they contribute to human rights abuses.

• Businesses Operating in Settlements: Cease activities carried out inside settlements, avoid financing or supporting settlement-related activities, and conduct human rights due diligence.
• Israel: Dismantle settlements, lift discriminatory restrictions on Palestinians, and cease providing financial incentives to businesses operating in the occupied West Bank.
• Third-Party States: Assess trade with settlements, ensure it is consistent with their duty not to recognize Israeli sovereignty over the occupied Palestinian territories, and provide guidance on implementing the UN Guiding Principles on Business and Human Rights.

Urgent Action Needed

“We urge companies and governments to take immediate action to address these egregious human rights violations,” said Sarah Leah Whitson, HRW’s Middle East director. “The status quo is unsustainable and must change.”

Note: The report’s findings are based on a comprehensive analysis of Israeli policies and practices in Area C, which is home to over 300,000 settlers but only about 40,000 Palestinian residents.