Developing Palestinian Society
Jon Pedersen and Rick Hooper (ed.)
This report describes past trends in the economy of the West Bank and Gaza Strip and also project some of the trends into the near future. The population of the West Bank and Gaza Strip is rapidly growing. With the current slow development of the peace process, the public sector has expanded with support from international donors, but with little base in the private sector.
If the trends continue, the Palestinian economy will develop into a typical third world economy based on a large public sector and low productive informal sector activities.
Throughout the remainder of the negotiations period, the international community should continue to support the public sector in order to ensure stability in basic living conditions, including health care and education.