WEST BANK AND GAZA INVESTMENT CLIMATE ASSESSMENT:
UNLOCKING THE POTENTIAL OF THE PRIVATE SECTOR
March 20, 2007
Finance and Private Sector Development Group
Social and Economic Development
Department Middle East and North Africa Region
i. Forty years of occupation in WBG has left a heavily distorted economy in a state of that is almost completely dependent on the Israeli economy. While other countries in the region have grown and industrialized, the Palestinian economy retains the hallmarks of a less developed economy. The size of the average industrial enterprise is about four workers, no larger than it was in 1927. While, the share of agriculture in GDP has declined, services and the public sector have been expanding rapidly, driven by donor funding and remittances from the export of labor. The share of industry remains low at around 12-13 percent. In contrast, in Jordan the industrial sector accounts for nearly 30 percent of GDP. It was hoped that with limited autonomy arising from the Oslo Accords of September 1993, the Palestinian private sector would take off. Free of the constraints imposed by military occupation, Palestinian entrepreneurs would rapidly invest and the thriving economy would attract foreign investment. Unfortunately, this did not materialize and the economy has suffered even more since Oslo.
FULL REPORT:
Document Type: Report
Document Sources: World Bank
Subject: Economic issues
Publication Date: 20/03/2007