Newspaper article The Christian Science Monitor

Economic Viability of a Palestinian State

Newspaper article The Christian Science Monitor

Economic Viability of a Palestinian State

Article excerpt

The opinion-page column "Palestinian Pie in the Sky?," July 31, which refers to my recent monograph on the "Economic Viability of a Palestinian State," raises a number of questions.

First, I am not sure what publication the Israeli author has reviewed in his article. The only specific reference is to my book, "The Palestinian Economy," which he describes as being "on the problems of economic development under prolonged Israeli rule of the West Bank and Gaza Strip economies." Indeed, this is the subject of the book. However, it does not present a "blueprint for an independent Palestinian economy," which is the subject of my monograph and of his article.

The author begins his review by contesting the size and feasibility of my estimates of the financial requirements for the reconstruction and development program of a future Palestinian State. He ignores entirely such critical issues as the reasons why and the means by which the Israeli occupation has obstructed the development of the economies of the West Bank and Gaza, creating gross distortions and an accumulation of unfunded investment opportunities during the past 23 years, and thereby justifying the sizable investment program needed once the territories achieve independence.

My estimate of the size of the public investment program at about $13 billion during a 12-year period following independence is neither exaggerated nor unprecedented, as the author says. Similarly, the $6 billion in financing assumed to come from Arab sources during the 12-year period is not extraordinary. It is comparable to the total amount of official assistance provided by these same sources to Jordan from 1978 to 1988. Having been deprived of official Arab and international assistance during the more than two decades of occupation, the new Palestinian state would be, as it has already officially been, accorded special and favorable treatment in terms of disbursement of Arab aid funds. Similarly, the estimate for private financing of remunerative investments in agriculture, industry, and tourism is derived from a careful analysis of investment opportunities in the new state and from estimates of available Palestinian, Arab, and international capital. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.