The economy of the Palestinian Territories is booming after years of economic downfall caused by the second In¬tifada. Business activity has grown steadily. However, the pre-Intifada level of eco¬nomic performance could not yet be restored. A lack of foreign investment, constrained mobility inside the Territories, and a strong dependence on international aid are responsible for that.

In this difficult situation, it is of particular impor¬tance to focus not only on promoting economic reforms via the private sector but also on educating local citi¬zens on the principles and values of Social Market Economy. The cooperation with the Palestinian Federation of Industries (PFI), which is representing the Palestinian industrial sector through its federated associations, is therefore of utmost importance for the Konrad-Adenauer-Stiftung (KAS) Ramallah.

The assessment study “The Consequences of Economy-Related Governmental Measures on the Industrial Sector” is the most recent outcome of this cooperation. It is based on two questionnaires, the first one targeted the producers, the second one the traders. The questionnaires were designed to figure out in how far the legislation of new laws and the revision and amendment of other laws, as well as the launching of the “Karama” campaign to boycott settlement products, have an impact on the respondents` businesses.

In general, it is noteworthy that the industrial as well as the trade sector have a good perception of the latest governmental actions towards the economy and the local markets, especially the “Karama” campaign. Anyhow, the impact of the “Karama” campaign and other governmental regulations and measures need more time to be felt and fully assessed, as such campaigns and measures affect policies and consumer behaviours. Nevertheless, the results of the study reflect a trend for change and things are moving in the right direction.

To order a copy kindly contact Mr. Jörg Knocha, E-mail: Joerg.Knocha@kas.de