WHITE HOUSE RELEASES DETAILED ECONOMIC PLAN FOR PALESTINIAN PEOPLE
“These three initiatives are more than just a vision of a promising future for the Palestinian people—they are also the foundation for an achievable plan,” the peace team promises in the document.
BY OMRI NAHMIAS. JUNE 23, 2019. Jerusalem post.
WASHINGTON –
Three days ahead of the Bahrain summit, the White House unexpectedly released
the financial part of its Middle East peace plan on Saturday, highlighting a
potential $50 billion in investments over the next decade.
Under the title “Peace to Prosperity –
The Economic Plan: A New Vision for the Palestinian People,” the Trump
administration published a 40-page document that lays out a detailed vision in
all aspects of life, from roads and rail to taxes and education, which it says
is to be built upon three pillars: “the people, the economy and the government
According to
the document, “with the potential to facilitate more than $50 billion in new
investment over 10 years, Peace to Prosperity represents the most ambitious and
comprehensive international effort for the Palestinian people to date. It has
the ability to fundamentally transform the West Bank and Gaza and to open a new
chapter in Palestinian history – one defined, not by adversity and loss, but by
freedom and dignity.”
More than half the funds ($28 billion) would go toward the West Bank and Gaza
Strip, while the rest would be divided among Jordan, Egypt and Lebanon.
“These three initiatives are more than just a vision of a promising future for
the Palestinian people – they are also the foundation for an achievable plan,”
the document states. “If implemented, Peace to Prosperity will empower the
Palestinian people to build the society that they have aspired to establish for
generations. With the support of the international community, this vision is
within reach. Ultimately, however, the power to unlock it lies in the hands of
the Palestinian people. Only through peace can the Palestinians achieve
prosperity.”
One of the plan’s stated goals is to create more than a million jobs in a
decade, reducing the Palestinian unemployment “to nearly single digits.” It
also aims to “more than double” the Palestinian GDP over a decade and cut the
poverty rate by 50%.
“Generations of Palestinians have lived without knowing peace, and the West
Bank and Gaza have fallen into a protracted crisis,” the introduction to the
plan says.
“Yet the Palestinian story will not end here,” it added. “The Palestinian
people continue their historic endeavor to build a better future for their
children.”
Part of the funds include money for infrastructure linking Gaza to the West
Bank.
According to the plan, the goal of the first pillar, “the economy,” is to
connect Gaza and the West Bank to regional and global markets.
“Major investments in transportation and infrastructure will help the West Bank
and Gaza integrate with neighboring economies,” the plan said. “By developing
property and contract rights, the rule of law, anti-corruption measures,
capital markets, a pro-growth tax structure, and a low-tariff scheme with
reduced trade barriers, this initiative envisions policy reforms coupled with
strategic infrastructure investments that will improve the business environment
and stimulate private-sector growth.”
The peace team suggested that “hospitals, schools, homes and businesses will
secure reliable access to affordable electricity, clean water and digital
services,” and that “billions of dollars of new investment will flow into
various sectors of the Palestinian economy; businesses will have access to
capital; and the markets of the West Bank and Gaza will be connected with key
trading partners, including Egypt, Israel, Jordan, and Lebanon. The resulting
economic growth has the potential to end the current unemployment crisis and
transform the West Bank and Gaza into a center of opportunity.”
The plan mentions countries like South Korea, Singapore, Taiwan and Japan as
examples of “thriving business-friendly countries.”
The peace
team set some specific targets, such as increasing Palestinian exports as a
percentage of GDP from 17% to 40%; ensure continual availability of affordable
electricity in the West Bank and Gaza; double the potable water supply per
capita available to the Palestinians; enable Palestinian high-speed data services;
and increase the foreign direct investment share of Palestinian GDP from 1.4%
to 8%.
The plan also offers to physically integrate Gaza and the West Bank “through an
efficient, modern transportation network. This project will support the
construction of roads across the West Bank and Gaza. Additional investment will
finance the development of a transportation corridor directly connecting the
West Bank and Gaza through a major road and, potentially, a modern rail line.”
The peace team also addressed the issue of border crossing and promised to
“provide financial and technical assistance to build the capacity of
immigration and customs officials to operate and manage crossing points in
coordination with neighboring states. This project will also upgrade facilities
at key crossing points along borders and construct new ports of entry. Upgraded
or newly constructed terminals will be equipped with the latest border crossing
technology, and older terminals will be refurbished and improved with amenities
for travelers to use while in transit.”
According to President Trump’s senior adviser Jared Kushner and senior legal
adviser Jason Greenblatt, adopting the plan could also mean a boost for
tourism.
“Unique and exciting characteristics give the West Bank and Gaza the potential
to transform into a successful global tourism destination,” they said. “Very
few places in the world are home to such remarkable historical and religious
sites. In addition, over 40 kilometers of coastline in Gaza along the Mediterranean
Sea could develop into a modern metropolitan city overlooking the beach,
drawing from examples like Beirut, Hong Kong, Lisbon, Rio de Janeiro, Singapore
and Tel Aviv.”
The second pillar, “the people,” aims to “improve the well-being of the
Palestinian people” through online education platforms, increased vocational
and technical training, and the prospect of international exchanges. “It will
strengthen the Palestinian educational system and ensure that students can
fulfill their academic goals and be prepared for the workforce.”
The peace team noted that its goal for that pillar is to boost human capital
development in the West Bank and Gaza, achieving a 0.70 score on World Bank
Human Capital Index; establish at least one Palestinian university in the global
top 150; increase female labor force participation rate from 20% to 35%; reduce
infant mortality from 18 to 9 per 1,000 births; and increase average life
expectancy from 74 to 80 years.
The third pillar, “the government,” is offering essential reforms in the
Palestinian government, such as “a commitment to upholding property rights,
improving the legal and regulatory framework for businesses, adopting a
growth-oriented, enforceable tax structure, and developing robust capital
markets will increase exports and foreign direct investment.”
The plan also calls for “a fair and independent judicial branch,” as well as to
improve government transparency and accountability. “International partners
will work to eliminate the Palestinian public sector’s donor dependency and put
the Palestinians on a trajectory to achieve long-term fiscal sustainability.”
“With the support of the Palestinian leadership, this initiative can usher in a
new era of freedom and opportunity for the Palestinian people and institutionalize
the policies required for successful economic transformation,” the peace team
added. “Accountability, transparency, anti-corruption and conditionality
safeguards will protect investments and ensure that capital is allocated
efficiently and effectively. The fund’s leadership will work with beneficiary
countries to outline annual investment guidelines, development goals, and
governance reforms that will support project implementation in the areas
identified within Peace to Prosperity.”
The peace team’s goal is to “improve government transparency, achieving a
Transparency International Corruption Perceptions Index score of 60 or better;
implement an e-government system, achieving a United Nations E-Government
Development Index score greater than 0.75; enact a sustainable public-sector
budget; enhance the business environment, achieving a World Bank Doing Business
ranking of 75 or better.”