Fifteen months - Intifada, closures and Palestinian economic crisis : an assessment

Publication Date 
March 2002
141 p

The report attempts to encourage dialogue between donors, the Palestinian Authority (PA) and Israel. Although it focuses on immediate emergency issues, it recognizes the need to balance short-term measures with a continued commitment to the longer-term institutional and development agenda. The Palestinian economic recovery that began in 1998 came to an abrupt halt with the start of the Intifada in September 2000, and the subsequent imposition of tight closure, decimating the economy over the past fifteen months. The report enumerates the problems of this severe economic recession, identifying Israel ' s closure of the Palestinian territories, as the cause of its economic crisis. This decline has been driven by unemployment in the private sector, exacerbated by the bankruptcy of the PA,. However, a full collapse of the economy and government has been averted, and the situation stabilized somewhat, with a subsequent slower rate of decline. Donor funding has increased compared to 1999 commitments, with increased disbursements in 2001. Nonetheless, the situation is unstable, and economic disintegration continues. Israel, the PA, and donors need to reverse the situation towards significant recovery of the Palestinian economy, by dismantling the system of internal check points, and easing border restrictions

Regional Focus 
Type of material 
Content type