The Economic Viability of a Palestinian State

Yitzhak Gal discusses the Palestinian economy's potential for growth by examining its economic record and comparing it with Jordan's.

This article examines the economic viability of a Palestinian state and the conditions required for its future development. The Palestinian economy today reflects three lost decades in terms of growth and development. The economic situation seems particularly tough when compared with that of Arab economies, most of which achieved substantial progress during this period. Currently, Palestinian economic viability depends on large-scale foreign aid, which cannot be expected to last for long at the required volume.