The United Nations has stressed on a more strategic approach to address the economic and fiscal crisis faced by the Palestinian Authority and Government.
A report issued by the office of the United Nations Special Coordinator for the Middle East Peace Process (UNSCO) for the upcoming meeting of the Ad Hoc Liaison Committee (AHLC) in Brussels on 10 May urges a coordinated and integrated response to resolve this precarious situation.
The report warned of an uncoordinated approach to address the current political, economic and security challenges in the Occupied Palestinian Territory (OPT) which only risks perpetuating a continuous cycle of crisis management.
The report notes some improvements in the situation since the last meeting of the AHLC in November 2021. Some trends point to increasing activity and integration between the Israeli and Palestinian economies, particularly with respect to expanded access to the Israeli labor market.
The number of workers crossing from the West Bank into Israel has increased to 153,000. Some 20,000 permits for Palestinians in Gaza to enter Israel for work or trade have been approved, with nearly 12,000 issued thus far. Trade in goods from the West Bank and from Gaza are higher than in many years, with this trade going mostly to Israel.
This increase is due to some recent Israeli decisions to make some improvements to access and movement. The report notes that such initiatives will improve Palestinian livelihoods and ease tensions in the short term. Nonetheless, increasing economic integration requires updating the regulatory framework governing the relationship between the Israeli and Palestinian economies, or risks exacerbating asymmetries.
The report also highlights that in the West Bank, the space for Palestinian economic activity, most notably in Area C, does not allow for needed Palestinian economic growth. Israeli movement and land-use restrictions, continued settlement activity and expansion, and the lack of Israeli-issued building permits, which are nearly impossible for Palestinians to obtain, underscore this negative development.
The report urges Israelis, Palestinians, regional States, and the broader international community to concrete steps to encourage the parties to further engage with each other and the international community with this goal in mind.