Media coverage
Al-Ray Palestinian Media Agency · 2015-10-03
A report on the World Bank's warning that Palestinians were growing poorer for a third straight year. Shaban calls on national and political forces to meet and decide on a way out of a situation threatening the economic, political and social fabric, urges the consensus government to hold an emergency meeting on the report, notes Palestinian reservations about such reports as not neutral, and calls for urgent international and Palestinian action.
A report on the World Bank's warning that Palestinians were growing poorer for a third straight year. Shaban calls on national and political forces to meet and decide on a way out of a situation threatening the economic, political and social fabric, urges the consensus government to hold an emergen…
The World Bank warns of a rising poverty rate among Palestinians
## The Palestinian economy reaches a catastrophic stage
03 Tishreen al-Awwal / October 2015 11:59
Gaza - Al-Rai - Raed Abu Jurad:
In a new report casting its shadow over the fragile economic reality in the Palestinian territories, the World Bank warned that Palestinians are becoming poorer for the third consecutive year, calling for urgent measures to save the Palestinian economy.
"According to the World Bank report, declining aid from donor parties, war, the suspension of revenue transfers to the Palestinian Authority, and the restrictions imposed by the occupation have had a severe impact on the Palestinian economy.
In this context, specialists in economic affairs believed that the World Bank report embodies the reality, but adds nothing new to the difficult economic situation suffered by our people.
Dr. Moein Rajab, Professor of Economics at Al-Azhar University in Gaza, told Al-Rai that "the report is of great importance as it alerts us that the Palestinian economic situation is difficult, should not be ignored, and must be studied with full care."
The economic report submitted by the World Bank to the Ad Hoc Liaison Committee (AHLC) — a forum whose members are the parties that provide aid to the Palestinian Authority — examines the current general economic trends and recommends taking measures and carrying out reforms to prevent further deterioration in this economy.
Meanwhile, economic analyst Omar Shaban stressed that what is required from the Palestinian national and political forces is to meet to determine how to emerge from the current economic situation, considering that this situation threatens the economic, political, and social structure in the Palestinian territories.
Shaban told Al-Rai: "The National Consensus Government is required to hold an emergency meeting today to discuss the World Bank report and take urgent measures to address the economic situation... This report must not pass without serious attention in light of the catastrophic situation."
Steen Lau Jorgensen, the World Bank Country Director for the West Bank and Gaza, said: "The continuation of the current volatile reality increases the level of concern and uncertainty, and casts a shadow over Palestinians' ability to envision a brighter future."
Economic researcher Moein Rajab pointed out that the international report confirms the need to take urgent measures to improve the economic situation in the Palestinian territories, indicating that the report places blame on the Authority, which has a role that does not exempt it from its responsibilities.
He added, "This report does not exempt the Authority within the limits of its scope and powers, and it must carry out its duties in rationalizing luxury and recreational expenditures, which have many unjustified aspects."
Rajab called on the Authority to pay attention to revenues and improve them, even if it has relatively succeeded, stressing the need for the Authority to stop tax evasion in its various forms.
Real per capita GDP has continued to contract since 2013, due to the weakness of the economy.
Unemployment levels remain high, especially among youth in the Gaza Strip, where the unemployment rate among them exceeds 60 percent, and 25 percent of Palestinians currently live in conditions of poverty.
Meanwhile, economic researcher Shaban pointed out that the World Bank report is not the first issued by an international institution, explaining that Palestinians are wary of these reports because they are issued by institutions that are not neutral, in his words.
Rajab noted that the Authority, with its bodies, ministries, and various institutions, spends billions of dollars annually and has many sources of revenue, enabling it to move more effectively, calling on the Authority to activate government performance and improve its weak performance.
He continued: "There must be encouragement for swift action and for the Authority to bear responsibility to carry out its duty properly, and it must move at the scale and level commensurate with the magnitude of our people's tragedy."
According to the World Bank report, the Palestinian Authority can confront the financial challenges that fall under its control. Reducing the wage bill, which could generate substantial savings amounting to 5 percentage points of GDP, is at the top of the priority list. In addition, the Authority must make greater efforts to improve tax collection levels and continue pressing ahead with reforms in the health and electricity sectors.
The Professor of Economics at Al-Azhar University noted that Palestinian clearance revenues transferred to the occupation amount to 70% of the Authority's public revenues, adding, "When the funds are withheld, they have an impact, as happened last year and in the first months of 2015 when the Authority cut expenditures to 50% and salaries to 60%."
Economist Shaban concluded by calling for urgent international intervention and, more importantly, Palestinian intervention to address the catastrophic economic situation in the West Bank and Gaza.
The report concludes by calling for the lack of a political horizon on the part of all parties not to lead to acceptance of the current situation, especially since many of the measures that can be taken to achieve economic development create an opening toward reaching a peaceful solution to the conflict.
Text © Al-Ray Palestinian Media Agency — archived here with attribution to the source. — Machine translation for archival reference. — Original source