Related Resources

Mr. de Jong began his presentation by placing the Palestinian economy in a global context. He displayed a diagram that illustrated the average monthly income of different regions in comparison to the Palestinian territories. According to Mr. de Jong, the average monthly income for Palestinians is $90, compared to about $1,430 for Israelis. He stressed that if Israel continues to disrupt the Palestinian economy via the occupation, then the average monthly income could drop even further.

Mr. de Jong then showed a map of the world illustrating that the bulk of global commerce takes place in a trade network between the metropolises of North America, Europe, Russia, China, and Japan. He referred to this phenomenon as the "highway of the world." The highway in this context is symbolic for the economic prosperity that runs primarily through these regions. According to Mr. de Jong, the Arab World, with its 22 countries and 300 million people, has the potential to be an integral part of this highway. With the political determination and an end to the Palestinian-Israeli crisis, the Arab World could become an economic powerhouse. Given its location, a future Palestinian state could be the center of this powerhouse, serving as the hinge that connects the Arab world from east to west. Gaza, described by Mr. de Jong as a possible "Rotterdam of the Middle East," has tremendous potential because of its location on the Mediterranean and its proximity to Tel Aviv, Cairo, and Amman.

On the local level, there is significant potential for economic growth and development even within the territories. Mr. de Jong's maps focused on the landscape of the West Bank, an area that has rich farmland and productive urban zones. Seventy percent of the population and 90 percent of nation's GDP is concentrated in the cities and towns situated on the hill range that runs north and south. According to Mr. de Jong, this area could be considered the Palestinian metropolitan system. It is well organized and has the potential to be the economic nucleus of a Palestinian state.

According to Mr. de Jong, this potential is being severely undermined by the growing Israeli presence. Settlements continue to expand, contaminating Palestinian agriculture with their sewage. Mr. de Jong gave an example of a village named Wadi Fukin, previously known for its grape production. However, the land around Wadi Fukin is increasingly being contaminated by waste produced by the surrounding Jewish settlements. Palestinians in the West Bank are therefore no longer buying grapes from Wadi Fukin because of the health hazard this poses, and the village is losing its means of economic livelihood.

Mr. de Jong pointed out that the Palestinian economy is being further exacerbated by the Israeli West Bank barrier, which prevents farmers from accessing their lands. Palestinians are cut off from the rest of the West Bank where they work and access other social services. Mr. de Jong said that the barrier leads to the "ghettoization" of Palestinian communities and referred to the process as "contraction and encapsulation," which leaves no room for horizontal growth. He added that although the barrier annexes only nine percent of the West Bank, that area accounts for around 50 percent of the Palestinian economy.

Mr. de Jong also explained that a successful two-state solution requires Israel to guarantee the Palestinians both unrestricted access to their land and East Jerusalem as their capital. East Jerusalem accounts for a quarter of West Bank's population and production there makes up 40 to 50 percent of the national economy. He concluded by saying that the economic viability of a future Palestinian state and the basis of a peaceful coexistence between Israel and Palestine depend on trade and economic cooperation. With mutual economic interests established, peace between the two sides can develop.