Report on the economic impact of the occupation ‘likely to be an under estimation of the true costs’

One of the authors of the recent report on the economic impact of the occupation responds to our post. The author asked to remain anonymous:

Following some comments on the post, let me just also clarify that our quantification is likely to be an under-estimation of the true costs of the occupation, as we have made the choice to quantify only those costs for which reliable and relatively precise estimations, could be provided. We have not been able to quantify the many different costs of the occupation because, in many cases, lack of data prevents us from finding a reliable quantification of the costs. For example the prohibition to import goods such as lathe machines, which are essential inputs in the machinery production, has most probably stifled the development of the whole Palestinian manufacturing sector.

In particular the major costs which were not included in the estimations are the following:

– Costs associated with obstacles to the international movement of people;
– Loss of investments in Area “C” due to building restrictions;
– Indirect losses from import restrictions in industry and ITC (“dual use items” list);
– Indirect losses from restrictions on telecommunications;
– Losses from the construction of the wall, especially in terms of severing economic links between the Palestinians in Israel and the West Bank;
– Losses from restrictions to the East Jerusalem market; especially for pharmaceuticals and telecommunications.
– Losses from politically motivated arrests of Palestinians, who are not able to participate into the Palestinian production