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Palestine Needs Urgent Donor Action To Tackle Fiscal Crisis: World Bank

2012-09-19

(RTTNews) - Palestine needs immediate action by international donors and initiatives to free the untapped West Bank for private investment to tackle its deepening fiscal crisis, the World Bank said Wednesday. A review report by the World Bank said that sustainable growth in Palestine could be achieved only through strong private sector investment, which has been restrained by physical, administrative and security restrictions. The key to unlocking some of the private sector opportunity is to have access to Area C of the West Bank, which is the only contiguous land in the region. Access to Area C is vital as it connects 227 smaller separate and heavily residential areas, which remain under full Israeli control and holds most of the agricultural lands, natural resources, and land reserves of the West Bank, the report said. "Donors do need to act urgently in the face of a serious fiscal crisis facing the PA in the short term," Mariam Sherman, World Bank Country Director for the West Bank and Gaza, said. "But even with this financial support, sustainable economic growth cannot be achieved without a removal of the barriers preventing private sector development, particularly in Area C." By having access to the strategically-located Area C, the Palestine economy, which has been hit hard by economic slowdown and political turmoil, will also benefit from development of businesses such as construction, telecommunications, agriculture, and tourism.


 

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