By Adam Reuter
Submitted by Tom Ifrach
The Palestinian Authority recently claimed that Israel gravely harms the PA economy. In fact, Palestinian officials argue that the Israeli occupation exacts a heavy price from their economy, offering a conservative estimate of $7 billion in the past 10 years.
The above estimate includes the frozen economic activity in Gaza as result of the blockade policy, the lost income from natural resources used by Israel given its control of most of the occupied area, additional Palestinian costs as result of restrictions on movement, and further limitations on local production.
Let's forget for a moment why a blockade was imposed on Gaza, why roadblocks have been erected in Judea and Samaria, and why is it that our communities surround themselves with a fence, rather than Palestinian communities. Let's assume that the Palestinian claims are fully accurate, and that the accumulated economic damage they incurred indeed totals $7 billion. As it turns, this is still a good deal for them.
I argue that the Palestinians have turned their misery into an economic strategy that benefits them. As result, they receive more money than all the damage they allegedly incur. Moreover, the current situation is economically beneficial for them, to a great extent.
The Palestinians fail to note that at this time they receive, both directly and indirectly, some $3-4 billion in annual international aid. This is more than double the annual damage to their economy as result of the occupation.
The Palestinians are world champions in per capita aid. On average, each one receives donations of some $1,000 per year. More than 60% of the Palestinian Authority's production originates from global donations. Statistical figures show that in the years 2009 and 2010, the PA received donations totaling some $4 billion per year. The scope of donations more than doubled itself since 2005.
Palestinians misuse aid
That is, if we count all the funds received by the Palestinians from all sources only in the past 10 years, we reach an amazing sum approaching $25 billion. This is about $18 billion more than their own accumulated damage calculations.
Are the Palestinians at least doing useful things with the money? Not necessarily. Most of these funds are not used to encourage growth, but rather, to pay salaries to countless officials and to fund an inflated bureaucracy. Part of the aid even finds its way to the only developed industry in the Gaza Strip – the "defense" industry.
The Palestinians could use the immense sums of money they receive from the world to renovate their infrastructure, thereby providing a future basis for developing industrial power premised on cheap labor. There is no shame in this strategy, adopted by Turkey, which now serves as Western Europe's production line.
However, as it turns out, the Palestinian investment in infrastructure is miniscule. The PA barely renovates roads and sets up almost no desalination plants despite receiving the funds and permits to do this. After all, it's much easier to pollute in Israel's direction. The Palestinians neglected their water infrastructure and also failed to set up hydro infrastructure, because it's easier to rely on the Israel Electric Company.
The Palestinians claim that the conflict with Israel harms them economically. There is no doubt this is true. Yet on the other hand, it seems they profit much from the conflict. Had it not been for the conflict, the Palestinian would barely receive any global aid. So do they have a genuine economic interest in putting an end to the conflict?
Dr. Adam Reuter is the chairman of the Reuter Maydan investment house and the CEO of the Financial Immunities consulting firm
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Expert: Agreement Shows Abbas' True Colors
Source: Arutz Sheva
By Elad Benari
Middle East expert Professor Moshe Sharon, Professor Emeritus in the Department of Islamic and Middle Eastern Studies at Hebrew University in Jerusalem, said on Tuesday that the reconciliation agreement that was signed between Palestinian Authority Chairman Mahmoud Abbas’ Fatah faction and the Hamas terror group unveiled Abbas’ true colors.
Abbas and the head of Hamas' political bureau, Khaled Mashaal, met in Qatar Monday and signed an agreement according to which Abbas will head the interim government, which will be made up of "independent technocrats."
On Tuesday, a member of the central committee of Fatah said the new PA interim government will be presented on February 18 in Cairo.
“The negotiations with the Palestinians have been going on for 40 years, and they’ve never had a chance. We wanted to end the conflict, and they want to destroy Israel,” Prof. Sharon told Arutz Sheva. “The Palestinians want to bring back millions of refugees and they want Jerusalem. They want to destroy the Jewish communities in Judea and Samaria and to return to the borders from 1947, before the State of Israel was established. The signing of this agreement is basically the same as giving official approval, in front of the world, to their desire to destroy us. Hamas has always called to destroy Israel and now Fatah is joining it.”
He added that the unity agreement is intended to realize the common goal of all the Arabs – Israel’s demise.
“They want to show that there is unity among all the factions, as if there is one Palestinian territory,” Prof. Sharon said. “They do not want to continue in a situation in which there is a state in Gaza with its own prime minister, and another entity in Judea and Samaria. They want to show these two areas as belonging to one Palestinian entity. This is a show which is designed to harm the State of Israel.”
Prime Minister Binyamin Netanyahu responded to the unity agreement and said the PA "can't have it both ways."
“I have said many times in the past that the Palestinian Authority must choose between an alliance with Hamas and peace with Israel,” Netanyahu said. “Hamas and peace do not go together. Over the past few weeks, Israel and elements in the international community have made great efforts to advance the peace process.
"If Abu Mazen implements what has been signed in Doha,” Netanyahu continued, “he will have chosen to abandon the way of peace and to join with Hamas, without Hamas having accepted the minimal conditions of the international community.” _________________________________________________
