The Israeli-Palestinian conflict has economic dimensions that extend beyond political and military strife, painting a grim picture of the Palestinian territories' economic subservience to Israel. While Israel has built a strong and diverse economy, the West Bank and Gaza remain stifled by a lack of industries and high levels of unemployment. This economic disparity is deepened by the fact that Israel controls major aspects of the Palestinian economy, including employment, trade, and essential services like water and electricity.
Key Points:
Employment Gap: Israel serves as a major employer for Palestinians, a fifth of whom work in Israel and its settlements. Yet, this employment often falls short of providing a livable wage, contributing to systemic underemployment.
Trade Imbalance: A major chunk of Palestinian trade is directed towards Israel, which becomes the gatekeeper for Palestinian imports and exports. The imbalance puts Palestinians in a vulnerable position, especially during times of conflict.
Essential Services: Israel's control over essential services is another dimension that shows the territories' heavy reliance on Israeli provisions. This encompasses electricity, water, and fuel, which come mostly from Israel and constitute significant portions of Palestinian imports.
Foreign Aid: The decline in foreign aid over the years has pushed Palestinians further into a corner, making them more dependent on Israel and prone to exploitation under the permit regime that controls movement in and out of the territories.
Get Ready for Civil Services with SRIRAM's Classes: Understand the Economic Dimensions of the Israeli-Palestinian Conflict
