Warner and Colleagues Sound the Alarm About Economic Deterioration in the West Bank

Letter

Date: Dec. 21, 2023
Location: Washington, D.C.

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"A range of factors since October 7 -- including a loss of wages for the thousands of Palestinians in the West Bank whose work permits Israel revoked -- have contributed to an economic situation that has shuttered thousands of West Bank businesses and reduced the Palestinian Authority's (PA) revenues by roughly 80 percent. Those revenues support a range of critical functions for the PA, including paying public-worker salaries as well as the salaries of members of the Palestinian Security Forces, whose local law enforcement and security efforts are critical to maintaining stability in the West Bank. A significant source of the PA's revenue derives from Palestinian import tax revenues, which according to long-standing agreement, the Israeli government collects on behalf of, and then transfers to, the PA. We are concerned that the Israeli government's decision following the October 7 attacks to withhold a significant portion of these revenues, and the PA's decision to not accept the reduced sum, is dramatically exacerbating the economic volatility in the West Bank.

In addition to harming the well-being of Palestinians, the current lack of revenue transfers directly threatens the economic standing of the security services in the West Bank. Absent these funds, salaries for the more than 30,000 members of the Palestinian Security Forces cannot be paid in full. The possibility of these forces declining to serve, absent pay -- and the possibility of militant groups attempting to step in and financially coerce these services -- represents a significant security threat, risking the opening of a new front to this conflict to the detriment of Israeli and regional security. We urge you and senior members of your Administration to continue to prioritize the resumption of these transfers in any conversations with the Israeli government as well as Palestinian Authority officials. A commitment by Israel to immediately transfer the full allotment of Palestinian Authority revenues is vital to staving off a significant rise in instability, and would represent a crucial step by Israel towards deescalating tensions in the West Bank."

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