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The Independent Commission for Human Rights - ICHR
Paying for health insurance, at a cost of ILS 5 million.
Of note, the payments above are not sufficient to meet the needs of Palestinian political prisoners.
Through the Israeli mail system, families send amounts to prisoners so that they can buy their daily
necessities in Israeli prisons and detention centres. Prisoners are obliged to buy from canteens at
much higher prices set by the Israeli Prison Service.
1.1.2 National economy
Israeli policies and continued control over Palestinian economic resources and economy sectors
have posed challenges to economic growth. Vulnerable Palestinian economy has continued to be
crippled by Israeli measures and full control over economic resources in Area C. The Separation
Wall, Wall gates, and settlement expansion are among the most significant barriers to Palestinian
economy.13
1.1.2.1 Persisting clearance revenue crisis and ongoing financial deductions
The Israeli occupying authorities have continued to deduct clearance revenues. Since the beginning
of 2022, clearance revenue deductions have exceeded US$ 1.4 billion. Creating one of the greatest
challenges to the Palestinian Authority (PA), this has adversely impacted the Palestinian government’s ability to pay the salaries of civil servants and fulfil existing commitments. Projections of the
Ministry of Finance (MoF) indicated that, in 2021, the budget deficit would be close to 5.2 percent
of GDP, forcing the government to resort to borrowing from local banks and further precipitating
the public debt crisis. By the end of November 2021, public debt amounted to some US$ 3.8 billion,
increasing by 5.2 and 37.4 percent in comparison to 2020 and 2019 respectively.
1.1.2.2 Control over Palestinian economic resources
The Israeli occupying authorities have continued to further expand settlements, effectively seizing
control of 62 percent of resource-rich West Bank land as well as of 85 percent of Palestinian water
sources. According to a report of the United Nations Conference on Trade and Development (UNCTAD), in 2021, the occupation is the cause of the economic predicament in Palestine. Ending the
occupation is the only key to sustainable development. According to the UNCTAD, the Palestinian
territory is affected by poor productivity, geographical split, loss of land and natural resources to settlements, fragmentation of markets, constrained importation of inputs and technology, and leakage
of financial resources into Israel. The economy of Gaza has been drained by the Israeli blockade and
military operations. The cumulative economic cost of the stricter Israeli restrictions, in the period
2000-2019, is estimated at US$ 58 billion.14
Israeli control over the vast land richly endowed with red sand and stone has prevented the installation of Palestinian extractive industries (quarries and stone crushers) in Area C. During the reporting
period, the Ministry of National Economy (MoNE) was only able to license two new quarries and
renew licences of 51 others. Quarrying is a promising export sector in Palestine, with annual exports
of some US$ 115 million. Failure to provide sufficient water supply to Palestinian governorates
13
14
Ministry of National Economy. Israeli Violations of the Palestinian Economy in 2021. Ramallah, January 2022.
UNCTAD. The Economic Costs of the Israeli Occupation for the Palestinian People: Arrested Development and Poverty in the West Bank, 24
June 2021. The report was submitted to the United Nations on 29 November 2021, which marked the Day of Solidarity with the Palestinian
People.
The Situation of Human Rights in Palestine