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Geography,
agriculture and the economy
Geography The West Bank is a landlocked territory bordering Jordan to the east and Israel to the west, north and south. Its mainly hilly terrain descends towards the east and the valley of the Jordan River and the Dead Sea. The Gaza Strip is a narrow piece of land just 40 km long and 10 km wide, located on the Mediterranean Sea northeast of Egypt’s Sinai Peninsula and bordering Israel to the east, north and south. The two territories comprise a total land area of 5,939 km2, with the West Bank covering 5,572 km2 and Gaza 367 km2 . In 2004 an estimated 3.7 million Palestinians were living in the territories, 63 per cent of them in the West Bank and 37 per cent in the Gaza Strip. Since the late 1990s the population growth rate has fallen somewhat but remains, at about 3.6 per cent per year, one of the highest in the world. Having taken in a massive influx of refugees in 1948 and over the decades since then, Gaza has one of the world’s highest population densities. Its population growth is estimated to be about 5.5 per cent. Both the West Bank and Gaza Strip were part of the Palestine Mandate that was controlled by Britain from 1920 to 1948. After the foundation of the State of Israel in 1948, the Gaza area was administered by Egypt , while Jordan ruled the West Bank . Many of the Palestinian Arabs who fled the partitioning of Palestine in 1948 and the subsequent forced migration of Palestinian civilians from their homes and properties, settled in these areas. Gaza received a massive influx of refugees, causing a serious shock to its population size. In 1967, as a result of the Arab-Israeli war the Israelis occupied both territories, which have been under Israeli control since then. The Oslo peace accords signed in September 1993 by Israel and the Palestine Liberation Organization initiated a slow and halting process of granting the two regions self-government under the Palestinian National Authority. In 2005 Israel withdrew some of its troops from Gaza , along with thousands of Israeli colonists who had settled in the territory, to signify the end of occupation and the ceding of internal control of the territory to the Palestinian Authority. However this cession has not been carried through and the status and borders of both territories continue to be disputed between Palestinians and Israelis. At present Gaza and the West Bank are semi-autonomous areas under the Palestinian National Authority and remain largely under Israeli civil and military control. The outbreak of a second Palestinian intifada, or uprising, occurred in September 2000. In response the Israelis tightened the border closure policy and enforced other punitive sanctions and restrictions against the Palestinians. The territories have been sealed off, preventing about 130,000 Palestinians from reaching their jobs in Israel and reducing access to Palestinian agricultural land. As a result of these Israeli policies, Palestinians living in Gaza and the West Bank have experienced a rapid and devastating deterioration of their economy. Agriculture Agriculture’s contribution to the economy of the Palestinian territories has been extremely variable. In the 1970s the sector accounted for 30 per cent of the economy but declined in the years following the Oslo accords as other sectors and services gained importance. More recently agriculture – especially the once-profitable market gardening sector – has been hard hit by the restrictions and closures imposed since the outbreak of the intifada. It now represents about 9 per cent of the economy. The current situation has made exporting produce more difficult, but at the same time farming has taken on the important role of ensuring national food security and providing a source of employment for thousands of workers at a time when other job opportunities are unavailable. About 29.6 per cent of the total area of land in Gaza and the West Bank is classified as cultivable land, and 13.2 per cent of it is irrigated. The agricultural sector is dominated by small-scale and fragmented family-owned farms. Since water is scarce throughout most of these areas, irrigation systems and plentiful water resources are vital to maintaining good productivity rates for many crops. In general productivity levels are below those of Israel but compare well with those of neighbouring countries. The main agricultural products are olives, citrus, vegetables and beef and dairy products. The Palestinian territories produce a surplus of olives and citrus fruits for export, and are able to meet 90 per cent of domestic requirements of vegetables, white meat, eggs and fruit, and 60 per cent of the area’s milk requirements. But overall the territories are a net importer of agricultural food, largely from Israel. They are also dependent on external sources for agricultural inputs such as fertilizers and seeds. Economy The Palestinian economy is highly dependent on Israel for employment and trade and has traditionally been dominated by its large service sector. Modest growth registered in the late 1990s was cut short by the Israeli response to the intifada, which has made it very difficult for the Palestinians to trade and access markets and has given rise to a severe economic recession. During the first two years of intifada, per capita income in the territories fell by almost 40 per cent while poverty and unemployment rates soared. In 2003 there was some slight economic recovery as a result of fewer curfews and more predictable closures. But performance declined again in 2004 and the economy continues to suffer as Israel pursues its policy of economic ‘disengagement’, in particular through closures affecting Palestinian workers and restrictions on imports and exports to and from the territories. Palestinians’ incomes are considerably lower than their pre-intifada levels, and real gross domestic product (GDP) per capita in 2005 was about 31 per cent lower than in 1999. Private and foreign investments continue to be depressed. Following administrative elections in January 2006 the outlook for the Palestinian economy has radically changed. The economy is falling into deep recession and the Palestinian Authority’s ability to operate is becoming increasingly compromised. International aid to the Palestinian Authority was largely withdrawn following the Palestinian elections in early 2006 and the victory of the militant Islamic movement Hamas. If the Israeli Government continues to increase its restrictions against trade across borders and on labour flows to Israel, as announced, as well as suspending the transfer of tax revenues collected on the Palestinian Authority’s behalf, GDP is likely to decline by a further 27 per cent in 2006, while unemployment would reach 40 per cent and poverty 67 per cent by the end of 2006.
Source: IFAD |
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