New Report Claims that Palestinians Are Not Ready for a State of Their Own
World Bank report says Palestinian economy not sustainable
According to a report issued by the World Bank, while the Palestinians Authority has made some of the inroads and progress necessary before having an independent state, its current economy is not strong enough to support that state.
John Nasir, the author of the report, claims that the recent growth of the Palestinian economy will not continue due to a heavy dependency of foreign aid which, for the past 20 years, has given the Palestinians billions.
And, while that growth has been mainly seen in government services and real estate, manufacturing and agriculture have dropped significantly.
The report asserts that true sustainable growth will come only through an emphasis on trade, integration and creating a dynamic private sector.
"Economic sustainability cannot be based on foreign aid, so it is critical for the Palestinian Authority (PA) to increase trade and spur private sector growth," said Nasir.
An Israeli government report release earlier this year echoed the findings of the World Bank Report, claiming that the PA was not economically stable enough to sustain a state.
The latest report also contradicts the International Monetary Fund, which only last year claimed that Palestinian financial institutions were ready for a state.