ABSTRACT
The development of the two territories has largely determined by the facts of occupation, the nature of their links with Israel and the Israeli military administration, the reponse of Jordan to the occupation of the West Bank and a number of indigenous factors. Collectively these barriers - economic, administrative, political and cultural - have resulted in a continuation of the backward, undeveloped nature of industry, despite a relatively rapid rise in the consumption of industrial goods. The vast majority of "administrative orders" of the occupation authorities concern economic matters. Infant industries and industrial development require a state infrastructure to help them in investment, research, development, protection and promotion. The very fact of occupation creates an unstable environment that forces businessmen to adopt conservative policies, which discourage direct industrial investment in the territories. There is an immediate control of industrial development through the import licensing of industrial machinery which is under the authority of the "responsible officer" in the military government.
