Resource information
Restrictions on economic activity in
area C of the West Bank have been particularly detrimental
to the Palestinian economy. Area C constitutes about 61
percent of the West Bank territory. Area C is richly endowed
with natural resources and it is contiguous, whereas areas A
and B are smaller territorial islands. Mobilizing the area C
potential will help a faltering Palestinian economy. Since
area C is where the majority of the West Bank's natural
resources laid, the impact of these restrictions on the
Palestinian economy has been considerable. Thus, the key to
Palestinian prosperity continues to lie in the removal of
these restrictions with due regard for Israel's
security. This report shows that rolling back the
restrictions will bring substantial benefits to the
Palestinian economy and can usher in a new period of
increasing Palestinian gross domestic product (GDP) and
substantially improve prospects for sustained growth. This
report examines the economic benefits of lifting the
restrictions on movement and access as well as other
administrative obstacles to Palestinian investment and
economic activity in area C. It focuses on the economic
potential of area C and does not prejudge the status of any
territory which may be subject to negotiations between
Palestinians and Israelis. The authors examine potential
direct, sector-specific benefits, but also indirect benefits
related to improvements in physical and institutional
infrastructure, as well as spillover effects to other
sectors of the Palestinian economy. Realizing the full
potential of such investments requires other changes as well
- first, the rolling back of the movement and access
restrictions in force outside area C, which prevent the easy
export of Palestinian products and inhibit tourists and
investors from accessing area C; and second, further reforms
by the Palestinian authority to better enable potential
investors to register businesses, enforce contracts, and
acquire finance.
