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Economic Break with Palestinians Might Be Good for Business, Experts Say

(Dallas Morning News) Jim Landers - Separating the economies of Israel and the Palestinian territories will have little effect on the Israeli economy beyond the costs of building walls and fences, Israeli economists said. "We have different economies. There's no synergy," said Eitan Raff, chairman of Israel's Bank Leumi. Traditional Israeli industries such as construction once relied on Palestinian workers, but those workers have been replaced. Israeli manufacturers of textiles and furniture have opened plants in Jordan and Egypt, where workers earn less than the Palestinians, and free-trade zones offer access to European and American markets. "If somehow the two economies could be separated out and both have sources for healthy growth, that would be fantastic," said Joseph Bachar, director general of the Israeli Ministry of Finance. "But the Palestinian economy is quite dependent on the Israeli economy."
2006-05-12 00:00:00
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