Unlocking the Trade Potential of the Palestinian Economy : Immediate Measures and a Long-Term Vision to Improve Palestinian Trade and Economic Outcomes
The Palestinian economy is severely hampered by trade-related restrictions, high logistics costs, cumbersome procedures and institutional inefficiencies. Operating within an uneven customs union arrangement with Israel, the Palestinian economy has...
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| Language: | English |
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/960071513228856631/Unlocking-the-trade-potential-of-the-Palestinian-economy-immediate-measures-and-a-long-term-vision-to-improve-Palestinian-trade-and-economic-outcomes http://hdl.handle.net/10986/29057 |
| Summary: | The Palestinian economy is severely
hampered by trade-related restrictions, high logistics
costs, cumbersome procedures and institutional
inefficiencies. Operating within an uneven customs union
arrangement with Israel, the Palestinian economy has
accumulated an enormous trade deficit and overdependence on
Israel’s economy and has neither could develop dynamic
export-oriented sectors nor to tap into larger and more
competitive third markets. Over the years, this situation
has contributed to slow growth, high unemployment, and
stubborn persistence of poverty in the Palestinian economy.
A bold reform agenda is urgently required to improve the
Palestinian economy’s trade outcomes. Immediate steps should
be taken to reduce the burden of existing trade-related
restrictions and transaction costs. The Palestinian economy
should also begin the transition toward an autonomous trade
regime, and can exercise control over its own customs
territory, in line with its long-term economic interest. It
should retain an open trade regime and develop its links
with overseas markets. The economic relationship with Israel
should be recast in a manner that is comprehensive and
exploits the large synergies that exist between the two
economies. Such a course will provide the Palestinian
Authority with some of the tools and incentives to undertake
far-reaching structural reforms. The reform agenda will
neither be a simple endeavor nor will it alone determine the
success or failure of the Palestinian economy. This note
proposes ideas that could, in the fullness of time, and with
the assistance of international donors help overcome
existing dysfunctions and improve trade-related economic
outcomes in the Palestinian economy. |
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