United Nations Development Programme

Economic Development

The Palestinian economy has suffered greatly over the past 5 years, which has lead to the current economic crisis that exists throughout the West Bank and Gaza. According to the World Bank, the Palestinian economy remains severely depressed, with estimates indicating that the Palestinian GDP is 23% lower than it was in 1999. Unemployment in the West Bank and Gaza currently stands at over 25%, which is set to increase in the coming years.

Over the past five years poverty levels have risen dramatically, with levels rising as high as 85% in some areas. This data provides further evidence of the dire state of the Palestinian economy, near collapse with only international aid stemming a possible breakdown, and that the economy can no longer automatically recover even if closures were lifted and conditions returned to pre-Intifada levels.

UNDP/PAPP's Response
Stemming from the dire state of the Palestinian economy, UNDP/PAPP has initiated a number of programmes and projects aimed at alleviating economic suffering and working towards reversing the current trends. Microfinance projects have been initiated to assist individuals and communities in overcoming unemployment and kick-starting local economies. Through UNDP/PAPP's support to cooperatives, societies and individuals in the West Bank and Gaza, hundreds of small businesses have been started or expanded, alleviating unemployment and improving the economic situation for thousands of beneficiaries.

Technical support has also been provided to the ministries of Finance and National Economy, as well as other Palestinian economic institutions including private sector groups such as PalTrade, through the provision of human resources. Assistance has been provided through programmes such as the United Nations Volunteers (UNV) and the Transfer of Knowledge Through Expatriate Nationals (TOKTEN), administered by UNDP/PAPP.

In addition, many infrastructure projects have been initiated, aimed at constructing or rehabilitating locations including industrial and agricultural areas. These projects also entail job-creation projects that have helped to ease unemployment throughout the West Bank and Gaza. At the sectoral level, UNDP/PAPP's support for economic development has been focused primarily on agriculture, industry, trade, and tourism, all of which are vital to the revitalisation of the Palestinian economy.

A wide range of projects and programmes including the multi-sectoral Local and Rural Development Programme (LRDP) continue to work to improve the economic situation in rural areas of the West Bank and Gaza, often worst hit by the current crisis.