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Palestinian Bubble Set to Burst


World  (tags: economy, corruption, business, money, politics, world, news, world, politics, middle-east, news, palestine, government )

Cal
- 870 days ago - ipsnews.net
The Palestinian Authority (PA) has announced it is facing a funding crisis; it is now relying on donor aid to cover a budget deficit of 1.1 billion dollars and cash shortfall of 500 million dollars.The International Monetary Fund (IMF) turned down an appe



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Comments

Azaima A. (225)
Sunday August 5, 2012, 9:13 am
hope the people won't suffer
 

Jennifer C. (169)
Monday August 6, 2012, 4:35 am
Noted. Thanks.
 

Stephen Brian (23)
Monday August 6, 2012, 10:05 am
As it is built on donations rather than developed normally, their economy has meat, but no skeleton.

Normally, a large company or institution is established somewhere and a support-industry grows around it. Normally that large entity is a manufacturing-company of some sort. Palestinians have a support-industry, but no big manufacturers to sustain it.

The article blames trade-restrictions and resource-extraction-restrictions due to Israeli control. Exports are normally a relatively small part of an economy, compared to domestic markets. Perhaps, with small populations and territory, such specialization is needed that Palestinians, unlike most other peoples, really must rely upon those exports rather than mostly domestic production, but I would have to see more about to be convinced that Palestinians are such a special case in this regard. Their agriculture does face serious impediments, but it is actually a small part of their total economy in terms of dollars. The trouble probably has more to do with natural resources-extraction, or lack thereof. Perhaps something can be done about that, though I don't know what resources are really available in the West Bank (aside from construction-materials).
 

Glenn Byrnes (192)
Monday August 6, 2012, 6:40 pm
Thanks and noted.
 

Marie W. (67)
Monday August 6, 2012, 8:41 pm
Get it back from Yasser Arafat who embezzled millions.
 

Alexander Werner (53)
Tuesday August 7, 2012, 7:38 am
Marie, Arafat embezzled BILLIONS, not millions. He was not a cheap or a particularly shy guy.

As for the bubble, one of the main Palestinian industries is digging up sponsors' money. They still run "refugee camps" and consider everyone born to a refugee descendant to be "another refugee", with stipend coming from UN at a rate of 1 Billion Bucks a year.

Generous Obama gave them another billion bucks, for the fun of it. EU is taken for a ride too, and is milked regularly and extensively, even though the level of prosperity in the West Bank exceeds levels of some EU countries, like Spain.

Knowing the players and trends, I won't expect any bubble to burst. I think this is all beggars' game.
 

Allan Yorkowitz (448)
Tuesday August 7, 2012, 1:23 pm
For those who see this as Israel's fault, you are sadly mistaken. This is an indication of a people who can not govern themselves - forget a state of their own.
 
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