Economists for Peace and Security

The Economics of Peace and Security Journal

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A publication by Economists for Peace and Security

The fragility of the Palestinian Authority: economic causes
SALEH, Basel

Vol 3, No 2 - Symposium: Palestine - an economy in conflict, July 2008

The article examines the evolution of the Palestinian Authority as a paradigmatic case of state evolution from stable political regime to fragile and failing entity. By focusing on the performance of the Palestinian economy following the 1993/94 peace agreements, the study analyzes the forces that caused the fragility of the Palestinian Authority. These are: (1) Israel's chaotic closure policy; (2) the structural weaknesses in the Palestinian fiscal budget; and (3) the economic and trade sanctions imposed in 2000 and 2006. The article identifies some of the major obstacles that need to be overcome in any future peace agreement in order for the Palestinian Authority to be an effective entity that can promote economic progress, democracy, and ultimately be capable of enforcing peaceful coexistence with its neighbors.

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