Political Economy of Dahlan-Fayyad

"According to UNCTAD statistics, looking at the Palestinian trade deficit is also revealing. In 2006, imports surged to 86% of GDP, even while GDP fell. In that year, Israel accounted for more than 66% of the trade deficit, and this means that fully half of Palestinian GDP was used just to pay Israel. Furthermore, Israel’s regular withholding of Palestinian tax revenue has resulted in increased dependence on donor “aid.” The Palestinian economy is wholly dependent on Israel. Another facet of dependency is the “choice” of trade partners, who are overwhelmingly the “consensus” group of “moderate” states. Top ten suppliers and customers of the PA include Israel, Turkey, Egypt, US, Italy, UK, Jordan, the UAE. The UNCTAD report provided further proof that de-development had occurred between 2000-2006 (and we should expect worse now): “Long-term structural deterioration is illustrated in a 10-year comparison of the agricultural and manufacturing sectors. Between 1996 and 2006, agricultural output declined 19 per cent, but in 2006 this sector employed 80 per cent more people than it did in 1996. Similarly, manufacturing value added declined 7 per cent over 10 years, yet employment in the sector increased 3 per cent.” (12) Also informative is the data on the GNI coefficient of GDP which measures per capita income and is an indicator of wealth distribution. That data clearly shows a growing gap in wealth distribution since starting in 2002, and accelerating after 2005. (13) It is illuminating to look at what “progress” the World Bank touts as part of its “achievements” to reform and develop the Occupied Territories with the help and administration of the PA. A few example will suffice: the “revision of the unsustainable pension system;” the reduction of government employment from 180,000 in 2007 to 141,000 in the first half of 2008 (and here the PA exceeded UN expectations of 153,000); and, the PA improved “security,” by increasing “deployment of Palestinian Security Forces” in the West Bank (naturally, security is the ever-present side-kick of economic sabotage disguised as development). (14) These “successes” will be familiar to anyone who has been following the destructive path of neo-liberal (and regressive) “reforms” that have been forced onto the developing world. Obviously, these externally promoted and imposed economic “solutions,” just like their political brethren, are in many respects destructive, and may be viewed as part and parcel of a larger method of control and hegemony over the already oppressed Palestinians." (thanks Olivia)