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The West Bank’s economy

America has been touting the idea of a “revitalised Palestinian Authority” as the only serious alternative to Hamas’s rule in Gaza. Yet if the pressure of the economic war being waged against the pa by Israel’s far-right government is not relieved soon, there may be little left of the Palestinian Authority to run the West Bank, let alone to govern Gaza. The war in Gaza has ushered in a grim new economic reality in Ramallah, the de facto capital of the West Bank. Supermarkets have hired security guards to fight off shoplifters. Thousands of businesses have closed. One official reckons the current economic crisis is worse than that caused by the covid-19 lockdowns. Because it does not control its own borders, the Palestinian Authority (pa) has to rely on Israel to collect import taxes on its behalf, which account for 64% of its total revenue. Is Israel strangling the West Bank’s economy?

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