Why the Palestinian economy urgently needs a stimulus

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Palestinian children at a refugee camp in Khan Yunis in the southern Gaza Strip on Dec. 31, 2018. (AFP)
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Nasser Saidi. (Supplied)
Updated 26 June 2019
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Why the Palestinian economy urgently needs a stimulus

  • Battered West Bank and Gaza economies in urgent need of investments
  • President Trump's senior adviser on the Middle East, Jared Kushner, unveils $50bn stimulus package at "Bahrain workshop"

MANAMA: The experts are unanimous: The battered Palestinian economy is in urgent need of stimulus and investment to lift it out of a cycle of chronic depression.
But there is no clear consensus that the proposals put forward by Jared Kushner, US President Donald Trump’s senior adviser on the Middle East, are the appropriate means of doing so.
Kushner is unveiling a $50 billion economic stimulus package at the Peace to Prosperity workshop being held in Bahrain’s capital Manama.
By any economic indicator, the West Bank and Gaza Strip are well down the global league. Gross domestic product (GDP) of around $15 billion puts them near Malta and Albania in the world growth tables compiled by the International Monetary Fund.
According to the World Bank, unemployment averaging around 31 percent for the two parts of Palestine, and hitting a dramatic 51 percent in Gaza, is among the highest rates in the world.
Palestine is dependent on foreign aid and grants, and Israel’s forbearance, to come anywhere near balancing its national budget, but most of the time it runs a sizable deficit.
By any normal standards, Palestine is an economic basket case. If it were a corporation, it would have filed for bankruptcy long ago.
“Grants, financed from our own income and supplemented by trust funds contributed by donors, fund the Palestinian Authority’s projects in water and sanitation, municipal, education and social protection sectors,” the World Bank said recently.
There is little doubt as to the cause of the Palestinian malaise: The Israeli occupation, and the more or less permanent state of hostility it creates, preventing Palestinians from living a normal economic life.
“The lack of progress toward peace and reconciliation creates an unsustainable economic situation,” the World Bank said.
“The Palestinian internal polity is sharply divided between Gaza and the West Bank. Due to a steep deterioration in Gaza and a slowdown in the West Bank, the Palestinian economy witnessed no real growth in 2018.”

The distortions of the Israeli occupation have led to a lack of infrastructure and increasing the cost of doing business.

Nasser Saidi, Middle East economist

The UN Conference on Trade and Development (UNCTAD) was equally certain of the cause of the chronic economic slump.  “Occupation has hollowed out the agricultural and industrial sectors and weakened the ability of the economy of the Occupied Palestinian Territory to compete at home and abroad,” it said.
“The fact that, today, real GDP per capita in the Occupied Palestinian Territory is at the same level as in 1999 is a clear indication of the human cost and lost economic potential resulting from occupation,” it added.
“Economic growth in all sectors is constrained by the loss of land and resources to Israeli settlements and the annexation of land in the West Bank.”
UNCTAD highlighted the problem of youth unemployment in Palestine. “This marginalization of young people discourages investment in education, lowers the accumulation of human capital and deprives the economy of potential entrepreneurs and creative thinkers,” it said.
Eminent Middle East economist Nasser Saidi told Arab News: “The distortions of the Israeli occupation — the barriers and obstacles — have led to a lack of infrastructure and increasing the cost of doing business.” He added: “A lot of these were put there in the name of security, but many of them are unnecessary. If you want to address the economic issues, you need to remove these barriers.”

INNUMBERS

$50bn - Total value of stimulus package

$28bn - Economic package for Palestinian territories

$7.5bn - Economic package for Jordan

$9bn - Economic package for Egypt

$6bn - Economic package for Lebanon

He believes that Kushner’s proposals will have only a “very limited” impact. “These aren’t really investments, they’re more like long-term loans to the Palestinians, and you have to question their ability to service the loans,” Saidi said. “What’s really needed is a Marshall Plan for Palestine, but this isn’t it. It barely addresses the issues in Gaza, for example, which is essentially a large number of people in what is effectively a concentration camp. How can they hope to be productive in an economic sense?”
Other Middle East experts shared this skepticism, and pointed to the problem of corruption in Palestine.
“The Kushner peace plan faces extraordinarily long odds, and not just because the problem has persisted for a century,” Ellen Wald, an American consultant and author of the recent book “Saudi, Inc.,” told Arab News.
“Economic plans have been tried before, just not on this scale. The Palestinian Authority also receives funds every year. Unfortunately, there’s extreme corruption in the (Palestinian) territories, and peace isn’t just a matter of buying people off.”


Medic says Gaza hospital under Israeli siege for fifth day

Updated 23 May 2024
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Medic says Gaza hospital under Israeli siege for fifth day

GAZA STRIP: A senior official at Al-Awda Hospital in northern Gaza said it was under Israeli military siege for a fifth straight day on Thursday after soldiers stormed it the previous day.

“We are still under siege for the fifth day in a row,” said the hospital’s acting director, Dr. Mohammed Saleh.

“Soldiers are present in the hospital’s courtyard and nearby houses,” he said, adding that there was “continuous gunfire and shelling” toward it.

Troops stormed the hospital building on Wednesday evening, he said.

“The hospital was stormed, and staff were forced to leave. I currently have only 13 staff, 11 patients, and two women accompanying wounded children,” Saleh said.

World Health Organization chief Tedros Adhanom Ghebreyesus said on social media platform X that 140 staff, patients, and accompanying adults were inside the hospital when troops stormed it.

The WHO visited Al-Awda regularly in April to deliver medical supplies and fuel, but on Tuesday Ghebreyesus said snipers were targeting the building and artillery had hit the fifth floor.

On Tuesday, patients and staff were also evacuated from another hospital in northern Gaza, Kamal Adwan, its director, Dr. Hossam Abu Safia, said at the time.

“These are the only two functional hospitals remaining in northern Gaza. Ensuring their ability to deliver health services is imperative,” Ghebreyesus said in Geneva.

Israeli troops have previously raided other medical facilities in Gaza, including Al-Shifa in Gaza City, the territory’s largest hospital, which was reduced to rubble after an operation in March, the WHO said.


Bahrain’s King Hamad says he is looking forward to improved relations with Iran

Russian President Vladimir receives Bahrain's King Hamad at the Kremlin in Moscow, Russia, May 23, 2024. (BNA)
Updated 23 May 2024
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Bahrain’s King Hamad says he is looking forward to improved relations with Iran

  • King meets Russian President Vladimir Putin at the Kremlin 

RIYADH: Bahrain’s King Hamad said his country was looking forward to improving its relations with Iran during a meeting with Russian President Vladimir Putin at the Kremlin.
The king added that there was no reason for Bahrain to postpone the resumption of diplomatic relations with Iran, the Bahrain News Agency reported on Thursday.
The king and Putin discussed the war in Gaza, regional and international efforts aimed at reaching a ceasefire, and the release of hostages and detainees. They also focused on providing humanitarian aid without obstacles to the territory’s civilian population.
They highlighted the importance of advancing the course of diplomatic action to settle the Palestinian-Israeli conflict, and achieving a Palestinian state with East Jerusalem as its capital. The leaders also said efforts to recognize the Palestinian state and accept it as a permanent member of the UN should be supported.
They also stressed the importance of the UN Security Council assuming its responsibilities toward resolving and ending global conflicts, and working to settle them in accordance with the rules of international law and the UN Charter to maintain international peace and security.
The king informed the Russian president of the outcomes of the Arab Summit held recently in Bahrain, adding that Arab countries appreciated Russia’s sympathy for just Arab causes.
The king and Palestinian President Mahmoud Abbas called for the convening of an international conference at the summit, which would take place under the auspices of the UN, to resolve the Palestinian issue on the basis of a two-state solution.
The king added that he hoped to host the conference and requested Russia’s support for it.


Arab Parliament welcomes move to recognize Palestinian state

Updated 23 May 2024
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Arab Parliament welcomes move to recognize Palestinian state

  • The parliament described the move as a victory for justice and the right of the Palestinian people to establish an independent state
  • Growing international recognition of a Palestinian state represented a practical response to Israel’s plans to “liquidate the Palestinian cause, which will not succeed”

CAIRO: The Arab Parliament has welcomed a decision by the governments of Spain, Norway and Ireland to recognize the state of Palestine.
The prime ministers of the three countries said on Wednesday that they would formally recognize Palestine as a state on May 28.
All three said they hoped the decision would accelerate efforts toward securing a ceasefire in Israel’s war against Hamas in Gaza, now in its eighth month.
The parliament described the move as a victory for justice and the right of the Palestinian people to establish an independent state.
It said the decision was a “new victory for the Palestinian cause and Palestinian diplomacy,” and an important step toward recognition by many countries worldwide.
The parliament said the recognition supported the legitimate rights of the Palestinian people, foremost of which is the establishment of an independent state with the city of Jerusalem as its capital.
It said that the announcements come at a time when Israel is working to destroy the Palestinian cause through “ethnic cleansing and forced displacement against civilians, including children, women, and the elderly, against whom war crimes and crimes against humanity are being committed.”
Growing international recognition of a Palestinian state represented a practical response to Israel’s plans to “liquidate the Palestinian cause, which will not succeed,” it added.
The parliament called on countries that have not yet recognized the state of Palestine to take a step toward “ending the historical injustice to which the Palestinian people have been exposed for decades of occupation and per the internationally recognized two-state solution based on international legitimacy resolutions.”
It called on the international community and all countries to stand with the Palestinian people and their just cause.
Ireland has said it will upgrade its representative office in the West Bank to a full embassy, while the Palestinian mission in Ireland will also be offered full embassy status.


Egyptians held nearly a year over deadly shipwreck are released from Greek jail after case dismissed

Updated 23 May 2024
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Egyptians held nearly a year over deadly shipwreck are released from Greek jail after case dismissed

  • The Egyptians’ defense team had argued that the nine were not crew members of the ill-fated trawler
  • Eight of the nine were released from a jail outside the southern city of Nafplio on Wednesday evening

NAFPLIO, Greece: A group of Egyptians jailed for nearly a year pending trial for a deadly shipwreck were released from jail Wednesday, a day after a Greek court threw out the case against them on grounds that it had no jurisdiction to try it.
Nine Egyptians had been charged with being part of the crew of the Adriana, a massively overcrowded trawler that capsized and sank near Greece last June with an estimated 700 people on board while sailing from Libya to Italy. Only 104 people survived – all men, mostly from Syria, Egypt and Pakistan — and 82 bodies were recovered.
The nine, who have been in pretrial custody since their rescue last year, had been charged with being members of a migrant smuggling ring and were accused of having caused the shipwreck. They had faced several life sentences if convicted.
But a court in the southern Greek city of Kalamata on Tuesday ruled it had no jurisdiction to try the case, as the shipwreck occurred in international waters, none of those involved had been trying to enter Greece, the ship was not Greek flagged and no Greek citizens were on board.
The Egyptians’ defense team had argued that the nine were not crew members of the ill-fated trawler but had been paying passengers who were mistakenly identified as crew by nine other survivors, and that they were being used as scapegoats by authorities eager to put all the blame for the tragedy on the trawler’s crew.
Eight of the nine were released from a jail outside the southern city of Nafplio on Wednesday evening. They were transferred to a police station in the city, where they were to remain in custody overnight pending further procedures. It was not immediately clear when they would be fully released from custody.
The ninth defendant was to be released from a different jail.
The massive loss of life in the sinking of the Adriana in the early hours of June 14, 2023, renewed pressure on European governments to protect the lives of migrants and asylum seekers trying to reach the continent. The European border protection agency Frontex says illegal border detections at EU frontiers increased for three consecutive years through 2023, reaching the highest level since the 2015-2016 migration crisis, driven largely by arrivals by sea.
The exact circumstances of how the Adriana sank remain unclear. The trawler was sailing in international waters but within Greece’s search and rescue area of operations, and a coast guard patrol boat and passing merchant ships were near the vessel for several hours. Greek authorities have said the trawler’s crew repeatedly refused offers of help, insisting it wanted to continue to Italy.
Several survivors have said the boat capsized after the Greek coast guard attempted to tow it, an accusation Greek authorities have vehemently denied. A Naval Court investigation into the sinking is still underway.
Speaking at the courthouse after the case was dismissed on Tuesday, Dimitris Choulis, one of the lawyers in the defense team for the nine Egyptians, said attention should turn to how the Adriana sank.
“The court today had to be very brave to issue this decision, and to say that these people are not the smugglers,” Choulis said.
The lawyer blamed the tragedy on the Greek coast guard and Europe’s migration policies, and said it was essential to “make sure that nothing like that would happen again.”


From wedding photographer to water queue: Gaza mother mourns lost dream life

Updated 23 May 2024
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From wedding photographer to water queue: Gaza mother mourns lost dream life

  • The mother of seven is one of over two million Gazans who struggle to survive in the eighth month of an Israeli siege
  • "I'm a wedding photographer. Someone like me should be going out and living well and spending money on their children," Abdulati said

KHAN YOUNIS, Gaza Strip: Falasteen Abdulati mourns her vanished good life as a wedding photographer as she wearily queues day after day for scarce drinking water in a rubble-strewn street in south Gaza, fearing for the future of her children.
The mother of seven is one of over two million Gazans who struggle to survive in the eighth month of an Israeli siege and invasion triggered by a cross-border Hamas attack, with food, drinking water, medical care and safe shelter hard to find.
"I'm a wedding photographer. Someone like me should be going out and living well and spending money on their children," Abdulati, 35, said, laboriously filling a few buckets with water from a battered barrel in the city of Khan Younis.
"Our life has (been reduced) to the simplest needs. It is work and exhaustion. Nothing else. The dream that I had as a wedding photographer to open a studio and to get cameras and to make people happy, is lost. My dream is lost."
She continued: "Every morning we wake up at 7 o’clock and of course the first thing we think about is water," she said. "We come here and wait in the long queue, just to fill up four buckets with water. Other than that, our shoulders hurt. There are no men to carry it for us. There is no one but us. Women are the ones working these days."
Israel's assault on the tiny, heavily urbanised coastal enclave has displaced over three-quarters of the 2.3 million Palestinian population and demolished its infrastructure.
"The future of my children that I worked tirelessly for is lost. There are no schools (functioning), no education. There is no more comfort in life," said Abdulati.
"No safety," she added, referring to the threat of shelling or raids that Israel says target Hamas militants holed up in densely-packed residential neighbourhoods.
Abdulati, dressed in a body-length robe and head-covering, said the upheaval of war had turned the lives of Gaza women upside down. "Women are now like men. They work hard just like men. They're no longer comfortable at home."
Her husband is hospitalised with war injuries.
Breathing heavily, she lugged her buckets along a shattered, sand-covered street and up a dingy flight of cement stairs into the family flat. There she heated up the fresh water over a makeshift fire stove in a cluttered, cramped room dark for lack of electricity, watched intently by her young children.
"We are suffering due to a lack of gas because the border crossings are shut," she said, referring to Israel's siege that has severely restricted humanitarian aid shipments into Gaza.
"The water that I filled up must be rationed. I heat it up so I can wash the children, in addition to doing the dishes and washing clothes. The four buckets I can get per day are just not enough. I have to go back again and again."