MAS Publishes Policy Brief on Economic Consequences of Possible Israeli Annexation in the West Bank

Ramallah, 20 November.

In assessing the economic and social challenges posed by renewed threats from the Israeli “Minister of Colonization” and other leading figures in the current Israeli government, MAS has been taking stock of its previous work on the subject and the other efforts in 2020 when the annexation threat first became concrete. In addition to research in 2018-2020 on the socio-economic impacts of the ceasing of US aid to Palestine under the first Trump Administration and the risks posed to Palestinian sovereignty and statehood by the latter’s “Vision for Prosperity and Peace, MAS also tackled the implications of extension of Israeli sovereignty (legally and otherwise) to parts of the occupied West Bank in a 2020 research paper entitled “Confronting the Economic Consequences of the Israeli Decision to Annex Parts of the West Bank”. 

In that context, following expert deliberations, MAS compiled a Policy Brief, that was not made publicly available at the time, but which is today published below in its original form, since the issues addressed then and the options for response are today no less relevant. MAS Director General, Raja Khalidi stated that “little has been done in terms of planning, policies or programmes since 2020 to strengthen the Palestinian social and economic capacity to either resist or prevent the adverse impacts. But for its part, MAS embarked in 2024 on a comprehensive research project assessing the social and economic impacts and costs of Israeli settlement expansion, a key driver of the annexationist movement that might yet go ahead with its plans in the coming months if the global community does not put a stop to the madness that has gripped Israel since it launched its genocidal war against Palestine”.

Policy Brief

Confronting the Economic Consequences of the

Israeli Decision  to Annex Parts of the West Bank

Round Table (6), 2^nd Sep 2020

The Palestine Economic Policy Research Institute (MAS) hosted a Roundtable session on the 2^nd September 2020 entitled “Confronting the Economic Consequences of the Israeli Decision to Annex Parts of the West Bank”.  The session was attended by (40) stakeholders and experts from both the public and private sectors and international organizations. 

The paper discussed the annexation plans from a legal perspective, and the possible economic repercussions, with the aim of acting proactively to confront these plans legally and economically while they are delayed, which might lead to complete cancellation.  The main focus of the paper was on the possible economic impacts of the annexation of the Jordan Valley and areas to the north of the Dead Sea, specifically area “C”. Annexation, if not imminent, remains an Israeli policy decision and it is necessary to act today with the understanding that it will be applied, sooner or later, on more or less of the occupied territory. There needs to be a distinct Palestinian position, which differs from previous policies that did not yield positive change in the material conditions of people living in areas targeted for annexation, nor in enabling them to directly confront creeping colonialism.

The Round Table participants commended the official Palestinian position and political and economic efforts for fighting this annexation by mobilizing international support and emphasizing the need for Palestinian Authority (PA) support for areas that fall within the annexation map. Within this context, interventions that are currently required must be based on two tracks. The first is a legal, political, and diplomatic track (not discussed here). The second track is economic, strategic and developmental, based on interventions that strengthen steadfastness on the ground. In the latter context, and based on the serious economic facts/data highlighted in the paper and during the RT discussion, there was a concordance on the need to intensify and coordinate national efforts and interventions needed at this critical time in these strategic areas targeted for annexation, through:

1. Updating the National Development Plan for Area C (2014-2016), in the context of other plans since prepared, such as those issued by the Colonization and Wall Resistance Commission. Additionally, link the objectives of the national policy agendas wuth the needs of these targeted areas, and start focusing on expanding projects and public services immediately to include all Palestinian regions. 
2. Designing investment and policy interventions within a coordination framework working on three levels, namely:
   1. Foundational level, which can be considered the driver of potential development and its main stakeholders include:
      1. Local communities, with their unique characteristics and locations.
      2. Local councils and local committees.
      3. Non-governmental organizations (agricultural, women, and cooperatives) that play a mediation role with local authorities, donors, and the local population, in addition to the documentation and mobilization of popular local and international support.
   2. At the level of political leadership and support, and its role in facilitating and encouraging preferential treatment in favor of threatened areas.
      1. The PA Government has a leadership, coordination, mobilization, and political/diplomatic role in supporting the foundational level through “pro-poor” laws and procedures that also rationalize development, according to local/national priorities simultaneously.
      2. The private sector and “national capital” are required to play a role not only in economic matters and large investments but also in meeting the needs of local communities through small-scale investment opportunities in Area “C” communities, within the national development vision and according to the highest standards of corporate social responsibility.
   3. At the level of supporters and solidarity partners. These have a role in financing; in documenting cases and violations; and in advocacy concerning international legal responsibility of donors, international organizations, international non-governmental organizations, and international human rights/solidarity institutions. Intensive Palestinian actions must target these supporters; as they have long awaited resolute Palestinian positions, meaningful efforts, and diplomatic leadership, to guide them in their efforts and interventions.
3. Adopt a strategic position and an economic program that includes complementary interventions that can be initiated immediately:

• Intensification of tourism investments in the north Dead Sea areas.
• Putting into place a long-term development programme for the Jordan Valley that transforms the Valley into a “Special Economic Zone", given its great expansion potentials. Mobilizing the support of third parties, like investors and sponsors, will facilitate these endeavors, and its successful implementation will support increasing the population and pulling out colonization from the Valley.
• Generalising the experience of Al Aqaba village, to the north of Tubas, as a unique and successful model in confronting the occupation’s policies, that should be followed in the rest of areas targeted by annexation, and area “C”, building on three basic pillars:  Media, laws, and support of donor countries. 
• Support local authorities by raising their capabilities in implementing structural plans and development projects.
• Expanding agricultural investments, whether in plant or animal production, in area “C” and the Jordan Valley.
• Expanding investment and housing projects in area “B”, where investments are possible and thwart any Israeli attempt to seize the area in the future.
• Consider MAS proposals for reorganizing Palestine within five regional development planning councils, empowered by the central government to provide planning, coordinate service delivery, and focus investment efforts on strengthening local/regional economies, to build an independent Palestinian spatial development vision to confront the narrative of Israeli-defined boundaries (A, B, C, Seam-zone, Annexed, …etc.).