Israeli demolitions hit Palestinian economy

Another 50 shops are set to be demolished

The Palestinian economy will be hit hard if Israel demolishes more West Bank shops and small businesses, the World Bank has warned.

On Tuesday Israeli bulldozers flattened about 60 shops and small businesses in the village of Nazlat Issa near Tulkarm.

There is also the concern that this will be a precursor to other such acts on a broader basis

Nigel Roberts
World Bank

Demolition orders for another 50 shops have also been issued, according to Palestinian and Israeli officials.

"There will be a very serious impact on the village and surrounding area," Nigel Roberts, director of the World Bank in Gaza and the West Bank, told BBC News Online.

"There is also the concern that this will be a precursor to other such acts on a broader basis."

Collective punishment?

The demolition wrecked businesses belonging to a vibrant market of 170 shops which attract shoppers from both the West Bank and Israel.

"It acted as a significant local economic magnet," said the World Bank's Mr Roberts, adding that access to agricultural areas has also been restricted.

Villagers blame the demolition on the security fence

Israeli officials said the shops had been demolished because they were operating illegally without permits.

"We've given out a total of 81 [demolition] notices, including the 28 already carried out," said Talia Somech from the Israeli administration in the West Bank.

However, the Palestinians have accused the occupying Israeli army of destroying their economy as a collective punishment for the intifada.

Villagers also say the bulldozers are clearing the way for the construction of a "security fence" to protect Israel from suicide bombers.

The World Bank's Mr Roberts did not want to speculate on the Israelis' motivation, saying he was more concerned with the potential economic impact.

But he added: "It seems to me that there is a connection between the fence and this community."

Damage

In December, Mr Roberts and his team visited the area because it had already suffered economically from the building of the fence.

DAMAGE (Sept 00 to June 01)

Infrastructure: $13.9m

Agriculture: $112.7m

Public buildings: $13.3m

Private buildings: $27.7m

Source: World Bank

"We saw it as a preview, what was occurring as a result of the construction.

"But it is hard to extrapolate the impact without more work, particularly if this policy is extended along the line of the fence."

The World Bank calculates that damage to Palestinian infrastructure, agriculture and buildings between September 2000 and June 2001 has amounted to $168m (£104m).

"Damage has continued to occur almost daily since, especially to security-related public buildings, private homes, and agriculture," it added in a report.

'Traumatic'

Next month the World Bank will publish an update about the economic impact on the Palestinian territories since the intifada of September 2000.

In the past two years, personal incomes have halved in the Palestinian territories, while poverty has increased from 20% of the population to 60%, said Mr Roberts.

Meanwhile, Palestinian unemployment has risen from 10% to more than 50%.

"It has been very traumatic in the social sense," he said.

He is also concerned that these sorts of actions by the Israelis will "scarcely bode well for any reconciliation" between the two sides.