Palestinians Poorer Than Ever

Inter Press Service, September 1, 2007

By David Cronin

BRUSSELS, Aug 31 (IPS) - Poverty in the Palestinian territories has reached "unprecedented levels" because they have been held under an "economic siege" for almost seven years, a United Nations body has found.

During 2006 the number of Palestinians living in 'deep poverty' almost doubled to more than 1 million. Some 46 percent of public sector employees do not have enough food to meet their basic needs, with 53 percent of households in the Gaza reporting that their incomes declined in the last year by more than half.

This data is contained in a report, released Aug. 30, by the UN Conference on Trade and Development (UNCTAD).

It stated that an ostensible Israeli policy of 'separating' the Palestinian authorities from Arab and world markets by restricting the movement of people and goods has "squeezed the economy to a size smaller than a decade ago."

The Palestinians' reliance on imports as a proportion of their gross domestic product rose to 86 percent last year -- up from 75 percent in 2005, equating to the loss of 500 million dollars to the economy.

UNCTAD also complained that Israel declined to hand over more than 800 million dollars in tax revenues it had purportedly collected for the Palestinian Authority during 2006. Because of this refusal -- the second since 2002 -- the authorities' revenues shrank to under 600 million dollars, half what they were in 2005.

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