ABSTRACT
The domestic economy of the West Bank and Gaza Strip represent a fraction of Israel’s GOP. The low level of productivity as compared to Israel is noteworthy. One of the factors influencing economic developments in the West Bank/Gaza Strip is the pervasive impact of the Israeli economy. The economic development guidelines are, in effect, the continuation of the pre-1967 Jordanian economic strategy for the West Bank. In Israel the Gross Domestic Product (GDP) was slightly higher than the GNP in contrast to West Bank/Gaza Strip where the GDP was only 71 percent of the GNP. The attitude of avoiding any undue fiscal burden on the Israeli taxpayer, emanating from the Civilian Administration activities, seems reasonable had it not been based on misleading facts. Although the level of government subsidies and other institutional subsidies granted to Israeli farming has been markedly reduced in 1985–1986, Palestinian farmers were unable to compete with their Israeli counterparts.
