RAMALLAH _ Palestine News Network
The United Nations Conference on Trade and Development (UNCTAD) criticized the pressure exerted on the Palestinian government to reduce spending, warning that inappropriate austerity prescriptions could lead to dangerous repercussions.
In his latest annual report on the Palestinian economy, which he announced yesterday, he said that he saw no evidence that the deficit in the general budget was the reason for the Palestinian trade deficit, arguing that the deficits were signs of a resource shortfall created by the Israeli occupation, which enhances dependence on Foreign remittances, forcing Palestinians to seek employment outside the Palestinian territories.
He cautioned that inappropriate austerity prescriptions could lead to curbing growth and raising unemployment without affecting the trade deficit, and could cause high costs and impose additional pressures on the already fragile social, economic and political conditions in Palestine.
He began his report by referring to the high unemployment rate of more than 27%, and was keen to register an objection clause indicating that this rate is "the highest in the world", while production decreased this year by 11%, as the situation worsened amid the decline in international assistance.
He blamed the occupation and its policies and actions for the structural imbalances and the accelerating weakening of the Palestinian economy.
In the details, "UNCTAD" attributed this accelerating weakness in the Palestinian economy to five factors, four of which are closely linked to the occupation and its policies and actions on the ground: the acceleration of annexation and expansion of settlements in the West Bank, and the continued economic deterioration in the Gaza Strip as a result of the blockade, The shackling of Palestinian trade, and the existence of a customs union with Israel, described the report literally as "defective" and "detrimental to development."
