Sector Priorities, Policies and Programs: Economy

 

Table of Contents

Foreword [2]

Introduction [3]

Our Vision of the State of Palestine [4]

Foundational Principles [5]

National Goals [6]

Institutional Development [7]

[8]Sector Priorities, Policies and Programs: [8]

• Governance [9]
• Social [10]
  
• Economy
  
• Infrastructure [11]
  

Rebuilding the Palestinian economy is critical to our goal to establish an independent Palestinian state. This requires the lifting of the burden of restrictions and sanctions imposed by the occupation regime on the Palestinian economy. These include closures, military checkpoints, and other arbitrary measures which fragment the Palestinian territory and impede movement of people and goods; the Separation Wall which deprives our economy of essential resources, including land and water; complete isolation of the Gaza Strip; isolation of Jerusalem; continuing settlement activity; and the general suffocation of economic activity. Restrictions imposed by the occupation regime are the major obstacle stalling Palestinian national efforts to initiate an economic recovery that will lay the ground for sustainable economic and social development.

In spite of domestically-supported and internationally-endorsed efforts made by successive Palestinian Governments to create an enabling investment environment and promote partnership with the private sector – the main driver of development in Palestine – such efforts have often been obstructed by Israeli restrictions. The 13th Government is committed to applying political pressure, backed by international support, to eliminate Israeli measures that are suffocating Palestinian economic recovery.

To initiate a sustainable economic recovery and to rebuild the national economy as a pillar of a modern Palestinian state, the Government has defined policy priorities in the sector in seven domains.

Creating an enabling investment environment:
The Government will promote investment in Palestine through, inter alia, tax incentives to local and foreign investors. The Government will also develop the package of modern investment laws and regulations to promote investment and economic activity.

Promoting the role of private sector in social and economic development:
Private business is an integral part of Palestinian society. The Government will act to enhance the role of the private sector in national development. The Government will also support the development of Palestinian private sector institutions to increase their capacity to represent the interests of their members.

Support Palestinian products and expertise:
In all its procurement activities, the Government will give priority to Palestinian goods and services without prejudice to competition on grounds of cost and quality.

Developing national resources: Palestine is abundant with human resources, but has limited natural resources. Therefore, the Government will focus on developing human capital through an education system that meets the needs of a labor market in a productive and globally-competitive national economy. On the other hand, the Government will develop techniques to conserve and manage our limited natural resources for the benefit of the Palestinian society and economy.

Developing infrastructure: Insufficient and inadequate infrastructure is a major factor driving up the cost of production. The Government will develop national infrastructure, including industrial zones, electricity networks, roads, crossing points, and other critical infrastructure to reduce production costs and enable Palestinian products to be more competitive in the domestic, regional and international markets.

Transmit knowledge and support Palestinian innovation: In light of the rapid pace of globalization, Palestinian businesses need international exposure to benefit from international expertise and promote Palestinian goods and services overseas. The Government will support international knowledge transfer and marketing activities in order to develop and enrich the national economy. In addition, the Government will encourage Palestinian innovation through promoting research and development.

Expand bilateral and multilateral cooperation: The Government will develop and sign agreements on commercial cooperation with states that grant Palestine preferential treatment, and raise awareness and utilization of existing agreements. The Government will also continue efforts to enrol Palestine as a full member on the World Trade Organization, World Customs Organization and other international bodies.

Objectives and activities of sector institutions

Below is a summary of the key objectives and related activities of the main governmental bodies in the sector.

The Ministry of National Economy (MoNE) has the following objectives:

Safeguard independence of the Palestinian economy through:
• Ending Israeli hegemony over the Palestinian economy.
• Diversifying markets and export destinations, with special focus on ties with Arab countries.
• Consolidating economic and commercial relations with other commercial partners, including Islamic states, EU, European Free Trade Association, and the USA.

Stimulate economic recovery and develop an enabling environment for business and investment in Palestine through:
• Developing enabling legislation and regulations and removing bureaucratic impediments.
•Developing investment-enabling infrastructure, including industrial estates.

Promote Palestinian competitiveness through:
• Developing human resources to compete in the global economy.
•Creating an economy based on knowledge and modern technology.
• Contributing to development of policies to effectively manage natural resources.
• Modernize, broaden and enhance the productive base of the Palestinian economy.

Provide protection to Palestinian consumers through:
• Contributing to developing and putting in force a Consumer Protection Law.
• Building the capacity of the Palestinian Standards Institute.

Ministry of Agriculture

The Ministry of Agriculture (MoA) has the following objectives;

Improve food security and promote self-sufficiency through:
• Establishing agribusiness projects that generate income and employ large numbers of workers.
• Marketing and raising the quality of national agricultural products.
• Enhancing household production by poor families. Promote economic viability and inward investment in the agricultural sector through: • Promoting economically viable crops.
• Encouraging the establishment of private companies to market agricultural produce.
• Protecting national agricultural products from unfair and anti-competitive market practices.
• Developing and improving livestock productivity.
• Encouraging financing of agricultural businesses.

Promote effectiveness of agricultural service delivery through:
• Modernizing the MoA’s organizational structure, building capacities of staff to enable them to provided enhanced services.
• Updating the national agricultural sector strategy.
• Upgrading the MoA’s infrastructure.
• Finalizing development of a legal framework to regulate the agricultural sector.
• Establishing unions and specialized boards providing agricultural services to farmers.

Develop, manage and utilize natural resources (land and water) through:
• Reclaiming and rehabilitating land, constructing agricultural roads, and digging collection wells.
• Developing water sources used for agricultural purposes, promoting the competent use of irrigation, and using treated saltwater and wastewater in cultivation.
• Launching a tree-planting project in Palestine (5 million trees).

The Ministry of Tourism and Antiquities (MoTA) has the following objectives:

Promote Palestinian tourism products through:
• Diversifying tourist products and promoting tourism services.
• Developing and enhancing cultural heritage resources.
• Enriching tourists’ cultural experience.
• Creating an enabling investment environment for the tourism sector.
• Implementing model projects in selected areas, including the Jericho 10,000 project; development of sustainable tourism in Jericho; construction of the Riwayah museum in Bethlehem; rehabilitation of Tal Balata; administration of the Sabastiya site; and establishment of tourist information centers in Jericho, Nablus and Al ‘Eizariya.

Promote and market Palestine as a distinctive tourist destination through:
• Developing a promotion strategy that markets Palestine as a unique tourist destination.
• Using the media, ICT, and tourist exhibitions to promote Palestinian tourism.
• Promoting the culture of tourism in the society – guiding citizens to engage positively with tourists and to protect cultural heritage sites.
• Promoting internal tourism.
Enhance MoTA’s performance through:
• Developing MoTA’s organizational structure, working methods and working relationships with relevant local and international organizations.
• Developing capacities of the MoTA staff.

The Ministry of Telecommunications and Information Technology (MoTIT) has the following objectives:

Build national human resources capacities in cooperation with relevant governmental bodies through:
• Contributing to development of educational curricula that promote the use of ICT.
• Contributing to the development of distance learning.
• Supporting scientific research and bringing international ICT expertise to Palestine.

Enhance consumer protection through:
• Contributing to development and enforcement of the Consumer Protection Law.
• Regulating the ICT sector and promoting competition in the ICT market.

Contribute to enhancing government performance and transparency through:
• Finalising the first phase of the e-government project.
• Establishing a national ICT center in cooperation with relevant PNA bodies.

Increase ICT sector revenues through:
• Rehabilitating the postal sector to provide effective and competitive postal and financial services.
• Promoting partnership with the private sector to promote the sector domestically and internationally.
• Encouraging international ICT corporations to appoint direct agents in Palestine, rather than dealing with Israeli agents.
• Supporting ICT business’ participation in local and international exhibitions.
• Supporting development of emerging ICT enterprises and inventions.
• Supporting the Palestine Information and Communications Technology Incubator (PICTI).
• Supporting installation of the IT Garden.

The Palestinian Land Authority (PLA) has the following objectives:

Promote effective public service delivery through:
• Creating a central computerized database that includes all registers, plans and documents of the PLA.
• Constructing PLA branch offices throughout Palestinian governorates.
• Building capacity of PLA staff.

Protect and maximize utilization of governmental land through:
• Listing and registering state land.
• Developing clear policies on the use of state land.

Protect citizens’ properties through:
• Continuing work on the land settlement project in the West Bank.
• Computerizing documents and plans.

The Palestinian Capital Market Authority (PCMA) has the following objectives:
• Enhancing the legal framework relating to the PCMA and the insurance, securities, and real estate mortgage sectors to ensure greater supervision, accountability and transparency.
• Promoting cooperation with governmental bodies and other partners to increase effectiveness of PCMA- related operations.
• Building the capacity of staff.

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