TITLE

Filistin Ekonomisinin Genel Özellikleri

AUTHOR(S)
ÖZTÜRKLER, Harun
PUB. DATE
January 2013
SOURCE
Middle Eastern Analysis / Ortadogu Analiz;Jan2013, Vol. 5 Issue 49, p62
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Palestine comprises West Bank and Gaza Strip. The purpose of this study is to analyze the basic characteristics of Palestine's economy. According to the World Bank's country classification on the basis of per capita gross national income, Palestine is a lower-middle income country. On the other hand, Palestine faces a deepening poverty problem. To solve poverty problem and improve its economic development level, Palestine needs a new development strategy that covers all sectors of the economy. This development strategy must give priority to investment projects that will produce goods to substitute import from Israel and through Israel. However, preparation and implementation of such a development plan requires lifting of Israel's embargo and establishment of Palestine's geographic and political unity. Specifically, free movement of goods and people between West Bank and Gaza Strip is a prerequisite for Palestine to become a sate. In addition, the economic integration between West Bank and Gaza Strip will create a more efficient and larger domestic market. Palestine economy grew on average 9% between 2009 and 2011. However, growth rates differ significantly between West Bank and Gaza Strip; growth rates were 6.4% in the former and 17% in the latter. The most important problem of Palestine's economy is unemployment rate. Today, every one of four persons in the labor force is unemployed. On the other hand, inflation rate is low. Very low level of private saving rate together with high public sector deficit leads to very high current account deficits. At present, current account deficit is mostly financed by foreign donations. Decrease in such donations put the functioning of both Palestine's economy and the government at risk.
ACCESSION #
87716749

 

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