Israeli, Palestinian Economies Interdependent


The Israeli Ministry of Foreign Affairs stated that the Israeli and Palestinian economies are closely interconnected in a symbiotic relationship, and if the two parties can become independently stable, the possibility of peace between them could be a reality.

The Israel Prime Minister Benjamin Netanyahu said that he believes a Palestinian state is possible once the Palestinian economy is strengthened, thereby helping to prevent future Iranian influence in the Palestinian territories.

Netanyahu believes that with a weak Palestinian economy, the Palestinian people cannot stand on their own. They are completely dependent on other nations for everything, a complete welfare state. This dependency leaves them open to further influence from Iran, exactly what Iran and its proxies want.

The neighboring Arab nations currently have done very little to help the Palestinian people, perhaps as a result of thinking that they are a permanent burden on their resources and borders. Israel, its Arab neighbors and the US could change the dynamic of the Palestinian fortunes, but there are opposing forces who want the Palestinians to remain weak, powerless, displaced and dependent. Those forces are Iran and their proxies, Hamas, Hezbollah, Islamic Jihad, Al Qaida even Fatah and many of the Palestinians themselves.

The majority of the Palestinian people are against peace because they have been brainwashed into believing everything is Israel’s fault.

Hamas is driven by Iran, because they supply money and training. To retain power, they help Palestinians, but also brainwash their children and keep them in poverty through propaganda, reminding them of the pre-League of Nations boundaries, as well as maintaining constant tension between the Palestinian people and their neighbor Israel. Hamas also hijacks aid shipments and redirects the resources to help fuel their own agenda. After which they sell the remaining goods to the Palestinian people that it was intended for – as aid, not goods to be purchased.

Fatah and the Palestinian Authority are little better. They are weak and vulnerable to the same corruption and plundering that Hamas uses.

Hezbollah uses the Palestinians for its own purposes, in a plan formulated by Iran, to keep Israel on high alert. They support and fund Palestinian terrorist groups, as well as launch rockets into Israel, attack and try to capture Israelis without having Israel attack them in Lebanon.

According to a Palestinian International Business Forum study, conducted two years ago, Israel consumes 90 percent of Palestinian exports and is the source of 74 percent of Palestinian imports. These are significant connections between the two economies. [ PIBF (PDF) ]

An Israeli Foreign Affairs report says the West Bank has benefited by boosting its economy by trading with Israel. These improvements came after Israel took steps to bolster Palestinian economic growth.

  • A 35 percent increase in trade between Israel and the Palestinian Authority (PA);

  • A 24 percent increase in daily wages in the West Bank;
  • Substantial growth in agricultural produce originating from the West Bank;
  • An increase in banking sector profits.
  • Significant growth in West Bank tourism
  • Number of Palestinians employed by Israeli-owned businesses increased 12.7%
  • The steps taken by Israel to help economic growth in the West Bank were made possible by the internal security situation in the West Bank and the lack of rockets being fired into Israel.

  • Removed roadblocks, checkpoints to promote access
  • Allowed Palestinians to work in Israel
  • Allowed more Palestinians to conduct business in Israel
  • Supported long-term development projects in Jenin, Tarkumiya
  • Supported an agro-industrial park in Jericho
  • Built roads, sewage and housing in Ramallah and Nablus
  • Built schools in Jilabun and Jenin
  • Helped launch four electricity substations
  • Launched Jenin Pilot Project

    The aim of the Jenin Pilot Project is to strengthen Palestinian Security Forces, improve the local economy and promote economic projects to improve daily life for Palestinians.

    Israel cooperates with Palestinian customs offices, established an Israeli-Palestinian Chamber of Commerce and the Palestinian Israeli Business Forum. A joint economic committee between Israel and Palestinian Finance Ministries meets regularly to discuss issues such as Palestinian workers in Israel and the transfer of funds to Gaza.

    Other joint committees, that were created under the Oslo Accords, foster cooperation between Israelis and Palestinians in tourism, transportation, water, health, welfare and telecommunications. All met at least once last year. Economic growth depends on the Palestinians building a stable economy.

    Palestinians Love to Hate

    Even though there seems to be cooperation between Israel and Palestine, both Hamas and the Palestinian Authority promote hatred against Israel. The Palestinian Authority is little better than Hamas, recently naming its new computer center after Dalal Mughrabi, a female terrorist who killed 37 civilians, including 12 children and American photographer Gail Rubin, in a bus hijacking in Israel.

    Palestinian TV regularly airs programs geared towards children that encourage them to kill Israelis and achieve martyrdom. [ Hamas Steals Mickey Mouse Image, Teaches Hate, Islamic Supremacy to Children ]

    Only one month ago, President Abbas rejected the idea of a Jewish state and recently met with Palestinian youth leaders where he held up a framed map of Palestine – clearly labeled in English – that covered all of Israel. “I say this clearly: I do not accept the Jewish State, call it what you will,” Abbas said during the meeting in Ramallah.

    In conclusion, US President Barack Obama was justified to call on Israelis and Palestinians to work together, but more needs to be done to rein in Iran, to stop them supplying hate and weapons to weak players like Hamas.

  • Alan Gray is the Publisher and Editor-in-Chief of NewsBlaze Daily News and other online newspapers. He prefers to edit, rather than write, but sometimes an issue rears it’s head and makes him start pounding the keyboard. Alan has a fascination with making video and video editing, so watch out if he points his Canon 7d in your direction.