Israel
Les coûts économiques de l'occupation israélienne pour le peuple palestinien
Arrêt du développement et pauvreté en Cisjordanie
Cette publication met en lumière l'impact des restrictions israéliennes sur l'économie de la Cisjordanie et les conditions socio-économiques de ses ménages pour la période 1998-2019 avec un accent particulier sur l'impact des restrictions imposées par l'occupation au lendemain de la deuxième Intifada. Il donne un aperçu des restrictions et des mesures israéliennes pendant la deuxième Intifada et la période post-Intifada. Il considère ensuite une trajectoire de croissance contrefactuelle (alternative) pour la Cisjordanie à partir de l'an 2000 afin de donner une indication de l'étendue de la croissance économique potentielle qui aurait pu être réalisée si les restrictions imposées au déclenchement de l'Intifada ne s'étaient pas produites. . L'étude fournit un ensemble de recommandations et de conclusions pour la puissance occupante les décideurs politiques palestiniens la communauté internationale et les partenaires au développement.
التكاليف الاقتصادية للاحتلال الإسرائيلي على الشعب الفلسطيني
كبح التنمية وتفاقم الفقرڡى الضفة الغربية
This publication sheds light on the impact of the Israeli restrictions on the economy of the West Bank and the socioeconomic conditions of its households for the period 1998-2019 with special focus on the impact of the restrictions imposed by occupation in the aftermath of the second Intifada. It provides an overview of the Israeli restrictions and measures during the second Intifada and the post Intifada period. It then considers a counterfactual (alternative) growth path for the West Bank from the year 2000 onwards to give some indication of the range of the potential economic growth that could have been realized if the restrictions imposed upon the outbreak of the Intifada had not occurred -or the economic costs in terms of GDP loss. It applies the empirical best prediction (EBP) method of Molina Rao and Datta (2015) to combine the strengths of household surveys and censuses in order to estimate the poverty headcount and other indicators which in turn allows for an assessment of the impact of the second Intifada using poverty gap and depth indicators. Finally the study provides a set of recommendations and conclusions for the occupying power Palestinian policymakers the international community and development partners.
The Economic Costs of the Israeli Occupation for the Palestinian People
Arrested Development and Poverty in the West Bank
This publication sheds light on the impact of the Israeli restrictions on the economy of the West Bank and the socioeconomic conditions of its households for the period 1998-2019 with special focus on the impact of the restrictions imposed by occupation in the aftermath of the second Intifada. It provides an overview of the Israeli restrictions and measures during the second Intifada and the post Intifada period. It then considers a counterfactual (alternative) growth path for the West Bank from the year 2000 onwards to give some indication of the range of the potential economic growth that could have been realized if the restrictions imposed upon the outbreak of the Intifada had not occurred -or the economic costs in terms of GDP loss. It applies the empirical best prediction (EBP) method of Molina Rao and Datta (2015) to combine the strengths of household surveys and censuses in order to estimate the poverty headcount and other indicators which in turn allows for an assessment of the impact of the second Intifada using poverty gap and depth indicators. Finally the study provides a set of recommendations and conclusions for the occupying power Palestinian policymakers the international community and development partners.
The Economic Costs of the Israeli Occupation for the Palestinian People: The Impoverishment of Gaza under Blockade
The main objective of this study is to shed light on the critical situation in Gaza and estimate the costs of the blockade and military operations with a particular focus on the socioeconomic conditions at the household level. It covers the unrealized potential economic growth that could have been realized had the Gaza blockade and military operations not occurred during 2007-2018. It also applies quantitative methods to estimate poverty headcount and poverty gap. The study also contains a set of recommendations for the occupying power Palestinian policy makers the international community and development agencies on the need to end the blockade on Gaza and mitigate its heavy impact.
التكاليف الاقتصادية للاحتلال الإسرائيلي على الشعب الفلسطيني: تكاليف مالية تراكمية
The study addresses the leakage of Palestinian fiscal revenue to Israel and provide up-to-date data on the sources of losses of Palestinian fiscal resources. It explains that the fiscal costs are part of the overall economic costs caused by occupation and consists of two components: (i) Palestinian fiscal leakage to Israel under the PER and (ii) other fiscal losses that are not leaked to Israel but caused by policies and measures imposed under the prolonged occupation.
The interdependence between the Paris Protocol trade regime and structure and sources of revenue
The Palestinian trade and taxation policy framework was established in accordance with the Paris Protocol as the West Bank and Gaza Strip came under the jurisdiction of PNA for a transitional period that was stipulated to last for only five years. The Protocol shapes the main policy framework for the management of economic affairs by PNA not only in terms of external trade relations but also in terms of financial monetary and other economic relations with Israel including policies related to importing taxation banking insurance water and energy. As mentioned earlier this study is not concerned with assessing the deteriorating economic conditions associated with the Protocol which has been elaborated in numerous other studies. Instead this study is mainly concerned with investigating the fiscal and tax revenue aspects of the Protocol in relation to the trade and taxation policies of Israel identified in article III of the Protocol (for more information see UNCTAD 2014a).
Estimating some of the fiscal costs of occupation for the Palestinian people: Leakage and other fiscal losses
The concept of the Palestinian fiscal costs due to occupation is part of the overall economic costs of occupation. It is a broader concept than the leakage of Palestinian public revenues to the treasury of Israel because it also includes other fiscal losses caused by policies and measures imposed by the occupying Power but that have not leaked to the treasury of Israel.
Rationale and background
Since 1967 the Occupied Palestinian Territory has been subject to protracted Israeli occupation that has created a hostile environment affecting the Palestinian economy and all spheres of life. Following the signing of the Protocol on Economic Relations in 1994 which was expected to improve Palestinian economic conditions the economic policies as well as the security and military measures of Israel imposed on the Occupied Palestinian Territory have rendered the outcomes of the Paris Protocol inimical to Palestinian development needs. The Palestinian economy is characterized by deteriorating economic indicators along with a chronic fiscal and trade deficit and a high level of dependence on the economy of Israel. This has entailed over two decades of denying the Palestinian people and economy the right to benefit from the country’s diverse natural and water resources and to make optimal use of fiscal financial and other resources. The issue of the costs of the Israeli occupation and Palestinian fiscal losses and revenue leakage to Israel resulting from flawed application of the Paris Protocol are therefore garnering increased attention. In this context since 2014 different studies have addressed Palestinian fiscal leakage and losses resulting from the current trading framework with Israel the first of which was published by UNCTAD in 2014.
Cumulative fiscal leakage and losses and their impacts on the economy and employment
The estimates of fiscal leakage and losses presented in chapter V are indicators of part of the cost incurred in only one year by the Palestinian people as a result of the enduring Israeli occupation. As noted the fiscal leakages covered in this study are a part of the fiscal losses which in turn are a part of the greater economic costs of the Israeli occupation. The latter is measured by the difference between the position of PNA under two scenarios namely the current fiscal position of PNA under the status quo which gives Palestinian policymakers a narrow policy space and the assumption that occupation is removed and the State of Palestine has fiscal sovereignty over all sources of public revenues and expenditures. In other words the cost of the Israeli occupation includes all direct and indirect losses caused by the occupation measures and control of all Palestinian resources and revenues.
The Palestinian fiscal crisis and previous estimates of fiscal leakage and losses
The trade and taxation regime currently in operation has long burdened the Palestinian economy. The many shortcomings of the Paris Protocol have allowed fiscal leakage to the treasury of Israel and entailed a lack of Palestinian sovereignty which has led to the loss of control of tax collection minimization of the tax base and weakening of access to information and tax records. The fiscal ramifications have limited the ability of PNA to respond to frequent humanitarian crises and meet other economic commitments and obligations.
Executive Summary
Despite the temporary state of optimism that followed the signing of the Protocol on Economic Relations (Paris Protocol) today a steady deterioration of the Palestinian economy can be seen in most economic and development indicators the chronic fiscal and trade deficit and the high level of dependence on the economy of Israel. The expected gains and outcomes from the Paris Protocol were counterproductive given that the ensuing trade framework and economic policies of Israel do not serve the interests of the Palestinian economy. Add to that the closure policy of Israel and restrictions on the movement of people and goods and a range of security and military measures imposed on the Occupied Palestinian Territory which have led to accumulating economic losses to the Palestinian people. The fiscal part of these losses is the main focus of this study.
Fiscal leakage and tax evasion
This chapter discusses some of the concepts related to fiscal leakage and the causes and sources of each type of leakage within the focus of this study including the nature and mechanisms of the evasion of customs duties and taxes.
Conclusion and recommendations
The signing of the Paris Protocol inspired a new state of optimism about the Palestinian economy. Expectations relied inter alia on the positive indicators of improved control and monitoring of public revenues and the maintenance of sustainable sources thereof. All of that was built on the hopes that under the Paris Protocol PNA would be able to benefit from reasonable policy space. However over 25 years this optimism has dissipated leaving PNA constrained and tied to trade and fiscal policies that do not foster the growth or development of its economy. The Paris Protocol has fostered a reality that allows only minimum policy space leading to an enduring loss of revenues and a lack of control over the largest portion of these resources and resulting in fiscal leakage and losses from many sources in addition to the temporary or permanent seizure by Israel of Palestinian revenues a stark violation of the terms of the Paris Protocol.
The Economic Costs of the Israeli Occupation for the Palestinian People: Cumulative Fiscal Costs
No. 51062. Israel and Kazakhstan
Agreement between the Government of the State of Israel and the Government of the Republic of Kazakhstan on cooperation in the field of exploration and use of outer space for peaceful purposes. Astana 30 June 2009
No. 51064. Israel and Cyprus
Agreement between the Government of the State of Israel and the Government of the Republic of Cyprus in the field of telecommunications and information technology services. Nicosia 3 November 2011