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West Bank and Gaza - Area C and the future of the Palestinian economy (English)

The Palestinian economy has experienced strong growth in recent years. This report examines the economic benefits of lifting the restrictions on movement and access, as well as other administrative obstacles, to Palestinian investment and economic activity in a region known as Area C. This region constitutes about 61 percent of the West Bank territory and was defined under the Oslo Peace Accords as the area that eventually would be transferred to the Palestinian Authority. Restrictions on economic activity in Area C of the West Bank have been particularly detrimental to the Palestinian economy. The Bank will focus on direct, sector-specific benefits, and also indirect benefits related to improvements in physical and institutional infrastructure, as well as spillover effects to other sectors of the Palestinian economy. The sectors examined are agriculture, Dead Sea minerals exploitation, stone mining and quarrying, construction, tourism, telecommunications, and cosmetics. Various physical, legal, regulatory and bureaucratic constraints that currently prevent investors from obtaining construction permits, and accessing land and water resources will be lifted. Current movement and access restrictions in force outside Area C prevent the easy export of Palestinian products and inhibit tourists and investors from accessing Area C. Further reforms by the Palestinian Authority will better enable potential investors to register businesses, enforce contracts, and acquire finance. Area C is important to future Palestinian economic development.


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    General Economy, Macroeconomics and Growth Study

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  • Country

    West Bank and Gaza,

  • Region

    Middle East and North Africa,

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  • Doc Name

    West Bank and Gaza - Area C and the future of the Palestinian economy

  • Keywords

    Poverty Reduction & Economic Management;liters per capita per day;Land and Water Resources;telecommunications sector;Central Bureau of Statistics;efficiency of tax collection;restrictions on trade;Access to Education;access to water;Agriculture;movement of people;private sector activity;water sector development;real estate development;general equilibrium model;education and health;internet service provider;reduction in budget;declaration of principle;output per worker;water and wastewater;availability of water;public sector service;private sector service;private investment rate;middle income economy;international tourist arrivals;lack of water;amount of land;distribution of population;demand for output;place of work;movement of worker;number of wells;level of private;waste treatment plants;reduction in unemployment;national water strategy;access to land;vulnerability of communities;quality of transportation;freedom of movement;Private Sector Growth;consumer price index;movement of labor;access restrictions;budget support;stone mining;Natural Resources;agricultural land;agricultural production;manufacturing sector;peace process;institutional infrastructure;real gdp;military force;severely limits;global marketplace;housing price;potential contribution;unemployment rate;internal trade;palestinian territory;water committee;open economy;mineral exploitation;farm employment;movement restriction;israeli citizen;construction permit;fiscal deficit;security concern;public expenditure;tradable sector;multiplier effect;construction sector;water requirement;water reservoir;production input;fertile land;access road;agricultural field;global tourism;commercial building;agriculture production;agricultural area;water source;tight restriction;utility line;water authority;labor productivity;restricted access;water statistics;industrial plant;daily wage;mineral production;private property;Public Services;military training;military base;donor assistance;water access;expected return;mobile service;underground aquifer;Land Registration;additional revenue;investment climate;consumer goods;construction material;banking service;future need;transportation infrastructure;olive tree;transitional period;manufactured products;increase productivity;negligible amount;telecommunications infrastructure;water conveyance;raw material;water production;poverty impact;annual production;mineral processing;real value;agricultural labor;price effect;productive sector;domestic supply;vehicular access;restricted water;potential investment;binding constraint;conservative approach;agricultural value;forest land;valuable mineral;large deposit;annual sale;international partners;stone industry;housing construction;productivity level;cultural organisation;export industry;export base;private capital;construction industry;fiscal data;acute need;export growth;mineral export;transmission path;tourism indicator;Population Growth;civil administration;international peace;rural area;economic infrastructure;fiscal benefit;technical committee;humanitarian affair;price inflation;agriculture sector;olive production;additional water;municipal boundaries;Road Networks;productive activity;fiscal position;settlement population;water availability;spring water;potential output;arable land;Fiscal Sustainability;net effect;sum equivalent;negative growth;political environment;investor confidence;bureaucratic constraints;conservative assumption;potential investor;value added;recurrent budgets;tax revenue;application process;electromagnetic spectrum;land use;personal communication;wastewater treatment;nature reserve;regional divergence;Public Infrastructure;state land;trade restriction;input mix;security risk;security control;labor movement;unemployment figure;administrative impediment;regulatory measure;physical barrier;



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West Bank and Gaza - Area C and the future of the Palestinian economy (English). Washington, D.C. : World Bank Group.