ABSTRACT
Even prior to the establishment of the State of Israel in 1948, there was a degree of economic "Jewish-Arab dualism" or cooperation despite the existence of two separate economies. The West Bank lagged in one area particularly - manufacturing. Little was done to promote industrial development in the West Bank, especially anything that might compete with the East Bank. The 360 sq. km. of territory known as the Gaza Strip were occupied by Egypt during Israel's War of Independence in 1948. Unlike the West Bank, which was annexed to Jordan this residual was formally held by Egypt "in trust for the Palestinians, pending the establishment of their state. The Gaza Strip as a result of the war and Egyptian occupation was cut off from its natural hinterland. Little help was available from Egypt as the period of their rule coincided with a period of slow economic growth within Egypt itself.
