For years, the Palestinian economy has been a dominant theme on the minds of international politicians and diplomats. Ironically, in an era of ‘fake news’, it seems to have fallen down in the pecking order of world issues. Is that because the champions of the Palestinian cause like Presidents of Syria and North Korea are more demanding, or has the reality on the ground changed?

There is no doubt that there is increasing evidence that the Palestinian economy has been on the up for some time.

• Industrial production rose about 1% in 2016.
• Growth moved forward by about 3 – 7%.
• Look at what is happening in the emerging high-tech sector, and the initial cooperation with Israelis.
• Bethlehem’s new economic zone is being copied by other areas.

And so the list goes on. However, in the opposite corner, there are plenty of downers, not helped by the insistence of Hamas in Gaza to devote resources to war rather than basic human development. For example: –

• Since the Oslo Accords of over 20 years ago, Palestinians have been responsible for their own water resources. The situation in Gaza is a sanitary disaster waiting to explode, but the local authorities continue to do nothing.
• Yet again this month, there are not enough resources to fund the supply of electricity to Gaza. Just where the Qatari donations end up is anyone’s guess.
• The Palestinian Authority (PA) is again cutting salaries to civil servants in Gaza, primarily members of Hamas (as documented by the EU in 2011), because it claims that it has no monies.

And meanwhile, in defiance of American law and European directives, the PA continues to fund the families of Palestinian martyrs and the welfare of cell mates in Israeli prisons. Officially, this was valued at US$180 million in 2016 alone. And it should be pointed out that much of the PA budget comes from overseas donations, which means the pockets of Western taxpayers.

In truth, the average Palestinian is still very poor. The official GDP is less than that of Egypt. And yet, the weaponry of Hamas becomes more sophisticated by the month. Leaders of the PA and Hamas live a life of luxury. Corruption is never far away from the talk of the day.

It is sad to see. The Palestinian economy, that could be so vibrant as its nascent high-tech industry is testing, continues to be doomed by leaders concerned with violence rather than people.