
I've just had an interview posted on the Brookings website. They decided to release my working paper this week and this is part of the promo package. Here's a snippet and the link.
Navtej Dhillon : The Palestinian economy has gone through two major changes: first a partial integration with the Israeli economy post 1967, leading to increased job opportunities for Palestinians to work in Israel, but a fundamentally fragile structure generating very limited investment and weak private sector job creation. Second more recently, a significant disengagement from Israel which has severed the main lifelines of the Gazan economy and subsequently any opportunities for the Gazan population to seek employment outside of Gaza. Could you please reflect on the trajectory of the West Bank and Gaza economy and their future viability?
Edward Sayre: The Palestinian economy currently is best described as three separate economies. There is the economy of the city of Ramallah, in the West Bank. Ramallah is the seat of power for the Fatah-led Palestinian Authority of the West Bank and it serves as the headquarters for most international NGOs and embassies. It is through Ramallah that nearly all of the hundreds of millions of dollars in aid has been flowing. As a result Ramallah’s economy has recovered strongly since the end of the second Intifada. The rest of the West Bank is a different story. In cities such as Bethlehem, Khalil (Hebron) and Nablus, the restrictions on movement throughout the region and to jobs in Israel have thrown these cities into a long term pattern of higher unemployment, lower wages and few private sector opportunities.
[Read the entire interview.]