Transcript Ronald Cohen

Herzliya – 1 February 2010
The Role of Economics in
Conflict Resolution
Sir Ronald Cohen
Palestinian Economy
Real GDP per capita has declined 34% in real terms
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Israel and the Palestinian Economy
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Unemployment
 Palestinian unemployment is high at approx 25%.
 42% unemployment in Gaza and 18% in West Bank (Q3 2009).
 In Gaza, 50% of employment is with Government, 16% in West Bank.
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Palestinian Private Sector Progress
 New telecommunications company, Wataniya Palestine,
launched on 1 November: $700m of investment, thousands
of jobs and over $350m of fiscal revenue for the PA
expected.
 Groundbreaking of Rawabi, the first Palestinian planned city,
took place in early 2010: The Portland Trust facilitated and
actively promoted the project of 5000 housing units, modern
infrastructure, public services and commercial opportunities.
Thousands of jobs and $500m plus of investment expected.
 The Palestine Investment Fund also launched two affordable
housing projects in 2009 – Al Reehan outside Ramallah
(2,000 units) and Al Jinan neighbourhood outside Nablus
(1,000 units).
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Grant Leveraging Facility
 Resources for development need to be used as efficiently as
possible.
 The Portland Trust recommends that donors establish a Grant
Leveraging Facility to attract private sector investment for
large economic infrastructure projects.
 The facility will provide a layer of grant funding (for example
15%) to attract the balance in private sector finance.
 $250m of aid used in this way could attract $1.5bn private
sector finance.
 Pipeline includes major projects in energy sector, water
management, waste management, industrial manufacturing
and others.
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The Portland Trust
42 Portland Place
London W1B 1NB
Azrieli 3
132 Menachem Begin Road
Tel Aviv 67011
P.O. Box Al Bireh 4102
Ramallah Al Masyoun
Website: www.portlandtrust.org
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