Navigating Economic Development in Palestine: Analysis of Key Challenges

Abstract

This study aims to evaluate the influence of various economic determinants - including economic policies, economic dependence, foreign aid, corruption, and unemployment - on the economic development of Palestinian society. This research utilizes the analytical descriptive methodology where qualitative insights are gathered from in-depth interviews with key specialized stakeholders from four Palestinian related institutions. Further, 252 questionnaires have been addressed to Palestinian citizen to assess their views about challenges facing the economic development in the country. The study finds that economic policies can bolster production levels to a certain extent. Economic dependence appears to challenge the production capacity of the Palestinian economy. Notably, foreign aid does not serve the purpose of financing the general budget deficit and hence the development goals. Furthermore, the presence of corruption seems to hinder the state s ability to effectively roll out economic development strategies. To foster economic growth, there s a crucial need to refine existing economic policies and augment production avenues. Mitigating the adverse effects of economic dependence can be achieved by fostering an equitable investment environment that promotes diverse project initiations. Moreover, the reliance on foreign aid to cover the public budget deficit necessitates an overhaul, underscoring the importance of advanced coordination and regulatory mechanisms between official and civil society institutions. The comprehensive approach used in this study aligns with Palestine's current development plans, making the findings particularly relevant for policymakers. Overall, this research serves as a pivotal resource for a range of national and international stakeholders aiming to understand and address Palestine s economic development challenges.