New York City, 12 November 2021 (TDI): The United Nations Report calls for a coordinated response to address the rapid deterioration in Palestine’s economic situation.
The United Nations Special Coordinator for the Middle East Peace Process (UNESCO), Tor Wennesland, issued this report. It addressed the contemporary political, economic, and security challenges in the Occupied Palestinian Territory (OPT). Moreover, it highlights the urgency to address the continuing economic crisis. It also urges a coordinated response to resolve this increasingly precarious situation.
Economic Crisis in Palestine
The Dire’ economic and fiscal situation in Palestine risks perpetuating a continuous cycle of crisis management. The UNESCO report highlights the urgent need to address it. The Years of economic stagnation in the West Bank, along with the sharp GDP per capita decline in 2020, the economy continues its multi-decade decline in the Gaza Strip. Furthermore, the country presents persistently high unemployment.
In addition, Wennesland mentioned: “It is increasingly difficult for the Palestinian Authority to cover its minimum expenditures, let alone make critical investments in the economy and the Palestinian people”.
Shortages of public funds
There are longstanding shortages of public funds. Consequently, it is contributing to the crisis. Moreover, Israel continues to deduct so-called clearance revenues. Meanwhile, this report calls the Israeli Government, Palestinian Authority, and the international community to work together. There is a need for an integrated response in the coming months.
It first calls for immediate economic reforms in Palestine. As well, institutions should be strengthened and apply near-term focus on delivering public services.
Secondly, the report advocates for the end of hostilities. These hostilities began on 21 May between Israel and militant groups in Gaza. These hostilities began for economic development support in the Strip.
Finally, it urges a sustainable and inclusive economic recovery. certainly, It will improve the livelihoods of all Palestinians, including women, refugees, and other discriminated groups.
The report warns that the situation across the OPT remains extraordinarily fragile. There are continued tensions in East Jerusalem. Moreover, violence is lingering over settlement activity. In addition, the Israeli security operations continue to undermine Palestinian institutions. As a result, it diminished prospects for any two-State solution. Special Coordinator, Wennesland upheld the need for governance and socioeconomic reforms along with sustainable policy changes.