Area C and the Future of the Palestinian Economy

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Front Cover; Contents; Acknowledgments; Abbreviations; Executive Summary; Direct Benefits; Indirect Benefits; Figures; Figure ES.1 Growth Generated Through the Lifting of Restrictions Could Increase Potential Palestinian Value Added by USD 3.4 Billion; Figure ES.2 If the Output Potential Associated with Lifting the Restrictions Materializes, the Fiscal Deficit of the PA Is Reduced by 56 Percent and the Need for External Budget Support Greatly Declines; Chapter 1The Palestinian Economy, Israeli Restrictions, and the Potential of Area C

The Palestinian Economy: Volatility, Distorted Growth, and Uncertain ProspectsFigure 1.1 Real GDP Growth Rate 1999-First Half 2013; Restrictions on Movement and Access, and the Stunted Potential of Area C; Figure 1.2 The Decline in the Tradable Sectors; Tables; Table 1.1 Significance of Area C in Terms of Natural Resources; Boxes; Box 1.1 Limited Access to Education for Palestinians Who Live in Area C Increases Their Chance of Being Poor; Chapter 2Area C-Output Potential of Key Sectors of the Palestinian Economy; Agriculture; Figure 2.1 Agriculture Value Added in the West Bank

Figure 2.2 Share of Agriculture in Total Employment, West BankFigure 2.3 West Bank Labor Productivity; Box 2.1 Agriculture in Israeli Settlements in Area C Exemplifies the Sector's Potential in the Area; Dead Sea Minerals; Figure 2.4 Potash Price and Demand Projections, 2012-25; Stone Mining and Quarrying; Figure 2.5 World Production of Bromine; Figure 2.6 While Stone and Mineral Exports Have Increased in Nominal Terms, Their Share in Total Exports Dropped Despite a Meager Overall Export Growth; Construction and Real Estate; Table 2.1 Palestinian Permits in Rural Areas and in Area C

Box 2.2 Fighting the Current Restrictions to Develop a New CityFigure 2.7 Growth in Housing Construction in the West Bank, 1967-2007; Table 2.2 Estimated Population Growth and Area C Restrictiveness in the West Bank Governorates; Tourism and the Dead Sea; Figure 2.8 Housing Prices and Palestinian CPI, 1996-2012 (1996=100); Figure 2.9 Following the Second Intifada, the Employment in the Hotel and Restaurants Sector (A Good Proxy for Tourism) Doubled; Figure 2.10 Following the Second Intifada, the Number of Hotels Increased Only Modestly, but Hotel Activity Increased Dramatically

Figure 2.11 Number of International Tourist Arrivals in the Palestinian Territories (1000)Table 2.3 Selected Dead Sea Tourism Indicators for Jordan and Israel; Table 2.4 The Number of Tourists Has Been Growing Around the World and Is Expected to Continue with Strong Growth by 2020 Worldwide and in the Middle East; Telecommunications; Table 2.5 Revenues Collected from West Bank Sites Managed and Operated by the Israeli Nature and Parks Authority; Box 2.3 Serving the Residents of Marah Rabah and Teqou in Area B; Box 2.4 Suboptimal Transmission Paths; Cosmetics; Chapter 3Indirect Benefits

Secondary Costs and Benefits Related to Infrastructure

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