ABSTRACT
This chapter considers potential industrial development under three different scenarios: Under existing barriers; Under modified status quo with some barriers removed; andUnder unrestricted development as in a separate West Bank/Gaza Strip entity. The reformist scenario is basically also a continuation of occupation by Israel but with a major liberalization of industrial development policies and a loosening of restrictive barriers on the part of both Israel and Jordan, as well as an increased readiness to invest in the area on the part of local entrepreneurs. The sectorial development would be uneven, with a higher rate of development in industries with export potential. The represents the most radical economic and political scenario possible and would involve a major change in political and economic development, and thus may be the most difficult to envision. The reduction in the proportion of Palestinians employed in Israel would be due to both economic and political factors.
