‘West Bank can’t grow with restrictions’

JERUSALEM – The depressed Palestinian economy in the West Bank cannot rebound unless Israel lifts restrictions on movement that have stymied growth and investment, the World Bank said in a report yesterday.

“The policy of closure… has resulted in a highly fragmented Palestinian economy,” said the report.This policy has severely limited the movement of people and goods within the West Bank, the movement of goods across the border with Israel and has nearly completely severed economic and social interaction between the occupied West Bank and the Gaza Strip.”Currently, freedom of movement and access for Palestinians within the West Bank is the exception rather than the norm, contrary to the commitments undertaken in a number of agreements between the government of Israel and the Palestinian Authority.””In economic terms, the restrictions arising from closure not only increase transaction costs, but create such a high level of uncertainty and inefficiency that the normal conduct of business becomes exceedingly difficult and stymies the growth and investment which is necessary to fuel economic revival.”The Israeli system of closure in the West Bank has “fragmented the territory into ever smaller and more disconnected cantons…severed Palestinian economic, social and physical links to Jerusalem and denied Palestinians access to some 50 per cent of West Bank land for economic development.”At the same time, the movement of Jewish settlers in the West Bank has remained unhindered, it said.”While Israeli security concerns are undeniable and must be addressed, it is often difficult to reconcile the use of closure for security purposes from its use to expand and protect settlement activity and the relatively unhindered movement of settlers in and out of the West Bank.”Nampa-AFPhas resulted in a highly fragmented Palestinian economy,” said the report.This policy has severely limited the movement of people and goods within the West Bank, the movement of goods across the border with Israel and has nearly completely severed economic and social interaction between the occupied West Bank and the Gaza Strip.”Currently, freedom of movement and access for Palestinians within the West Bank is the exception rather than the norm, contrary to the commitments undertaken in a number of agreements between the government of Israel and the Palestinian Authority.””In economic terms, the restrictions arising from closure not only increase transaction costs, but create such a high level of uncertainty and inefficiency that the normal conduct of business becomes exceedingly difficult and stymies the growth and investment which is necessary to fuel economic revival.”The Israeli system of closure in the West Bank has “fragmented the territory into ever smaller and more disconnected cantons…severed Palestinian economic, social and physical links to Jerusalem and denied Palestinians access to some 50 per cent of West Bank land for economic development.”At the same time, the movement of Jewish settlers in the West Bank has remained unhindered, it said.”While Israeli security concerns are undeniable and must be addressed, it is often difficult to reconcile the use of closure for security purposes from its use to expand and protect settlement activity and the relatively unhindered movement of settlers in and out of the West Bank.”Nampa-AFP