Agricultural Development in the West Bank (ص 99)
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- Agricultural Development in the West Bank (ص 99)
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a
international trade, though on
ition in its
@ prominent positi — vig a
A commodity break:
Considerably smaller scale. ;
may that about one-third
imports for 1979 (see Table V - 10) reveals _
igi ss only oO:
©f all exports were of agricultural origin, as versu:
i apidly that they
imports. The value of agricultural imports rose so rap:
ceeded export e £0 tion.
within a few years after th onset of occupa’
rts
is i i i he one
ig is an indication of diminished production on t
‘gain, th:
iti . Itis
hand, and exposure to Israeli competition on the other.
ini icultural
clear therefore that a major target of a Palestinian ag!
i e
Policy is to bring this trend to a halt, and possibly try to revers
it. A forthcoming Palestinian state will find it exceedingly
ifricult to develop an industrial sector competitive to that of
ther countries in the area (less so of Israel's), but it cannot
@fford to loose its traditional comparative advantage in agriculture.
While this is underlied by tangible economic realities, it is
dictated even more markedly by the political aspirations of the
Palestinian people.
Table (v - 10)
Relative significance of agricultural trade (1979)
Total Agr. commodities*
1m Jordan Dinars IL © JD** of Total
Eports 3,726.4 44.4 1202.0 14.3 32.2
Imports 8,974.6 107.0 1279.5 15.3 14.2
Trade deficit 5,248.2 62.6 77.5 0.9 1.5
Includes olive oil and other processed agricultural products,
Which are classified as industrial in the original reference.
“* Converted at the market exchange rate for 1979, which averaged at
IL 83.9 per Dinar.
“urce: Adninistered Terri tori
RP. 6.
§ Statistics Quarterly 1980, op. cit.,
187 7
Finance
The monetary and banking systems in the occupied territories were
disrupted and restructured after occupation. The developments in
this regard are summarized below:
1. Jordanian and Israeli currencies were concurrently circulated as
legal tender. The first was used for hoarding Purposes by West
fankers, on account of its stability, while the second was maintained
in quantities just enough to allow for current business transactions.
2. Arab banks. closed down and were replaced by branches of Israeli
banks. The latter, however, failed to conduct their business beyond
Services involving settling current transactions between businessmen
on both sides of the Green Line (the frontier).
3. The soaring inflation rates in Israel, exceeding an annual
average of 100% during the past few years, have had a drastic
impact on the West Bank economy, With rapidly depreciating currency,
it became extremely difficult to achieve a real return on investment,
*ven allowing for numerically high profit margins earned during
Strrent transactions. The crux of the problem is that the net worth
°f a firm as measured in a relatively stable currency, comonly the
Jordan Dinar, can hardly exceed the opening net worth, because of
ramatic devaluation of the Israeli Pound relative to the Dinar,
“XCeeding 30% in most years (see Table V- 11). This in effect
"ens that in order to be able to claima real profit, a firm should
“AM an unusually high return on its initial investment, as valued
i,
” Israeli pounds.
pega Suc
—— - تاريخ
- ١٩٨٢
- المنشئ
- Hisham Masoud Awartani
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