Financial Crime World

The Israeli Occupation of Palestinian Territories: A Systematic Strangulation of Local Governance and Economy

Background

TEL AVIV, ISRAEL - The Israeli military administration’s grip on the occupied Palestinian territories has been tight for decades, stifling local governance and economic development. Despite some initial growth following the 1967 occupation, the Palestinian economy has since stagnated due to a series of policies aimed at subjugating the territories to Israel.

Concentration of Power

The absence of institutional or formal mechanisms for local participation in policy formulation has led to a system where legislative, administrative, and judicial power is concentrated in Israeli hands. The Palestinian population is subject to harsh treatment, with little autonomy to govern their own affairs.

Economic Indicators

Economic indicators paint a dismal picture:

  • Domestic contribution to gross national product (GNP) fell steadily between 1978 and 1984
  • Rapid decline in the relative share of traditional sectors such as agriculture
  • High degree of fragmentation in the economy, reflecting distortions in output and income structures
  • Widening gaps between domestic and national outputs
  • Increasing subservience to Israel’s economy

Economic Constraints

Israeli policies have led to:

  • Expropriation of land
  • Restrictions on crop types and quantities
  • Control over water resources
  • Industry transformed into ancillary industries catering to Israeli needs through subcontracting arrangements
  • Closure of banks and financial institutions prior to occupation, coupled with discriminatory lending practices by Israeli banks

Financial Constraints

The consequences are stark:

  • Deprived the territories’ economy of its prime source of finance
  • Limited access to credit and financial services
  • High unemployment rates

Calls for Urgent Support

“It is imperative that international organizations and governments recognize the dire need for urgent support to create an administrative structure with capabilities at various levels aimed at providing usual government services and meeting the administrative needs of development efforts,” said a Palestinian official, speaking on condition of anonymity.

International Criticism and Calls for Autonomy

The Israeli military administration’s grip on the occupied territories has been met with widespread international criticism, with many calling for greater autonomy and self-governance for the Palestinian population. As the situation continues to deteriorate, it remains unclear when or if these demands will be met.

Sources:

  • “Palestinian Economy Under Occupation” by the United Nations Development Programme
  • “The Israeli-Palestinian Conflict: A Study of Economic Factors” by the International Monetary Fund
  • “Occupation and Governance in the Palestinian Territories” by the World Bank