Know More About Palestine

Friday Sept. 17, 2010 5:55 PM (EST+7)
Palestinian Authority is `well-positioned' for statehood, World Bank says

Read more: Palestinian Authority, Peace Process, Economics, state-building, economis growth

RAMALLAH, September 17 (JMCC) - The Palestinian Authority is “well positioned” to establish estate says the World Bank. However it remains dependent on foreign donors, and its economic growth is under the status quo, unsustainable.

“If the Palestinian Authority maintains its current performance in institution-building and delivery of public services, it is well-positioned for the establishment of a state,” the World Bank said in a report to donor countries. “Sustainable economic growth in the West Bank and Gaza, however, remains absent.”

Limitations imposed by Israel on imports and access to east Jerusalem and other areas are major impediments to increased private investment, the report said. Israel says access restrictions are necessary to stop attacks by militants. The Palestinian Authority also needs to implement legislation that would improve the investment climate, the report said.

The West Bank and Gaza economies are heading for 8 percent growth this year, up from 7.2 percent in the West Bank in 2009 and 5.4 percent in Gaza, Oussama Kanaan, the head of the International Monetary Fund’s mission to the area said on Sept. 14. While some of the growth is due to improved investor confidence and the partial easing of restrictions by Israel, the main driver remains foreign donations, the World Bank said in its report.

“Unless action is taken in the near future to address the remaining obstacles to private sector development and sustainable growth, the Palestinian Authority will remain donor dependent and its institutions, no matter how robust, will not be able to underpin a viable state,” the bank said.

Read more at Bloomberg…






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