A large number of studies in recentyears have attempted to analyze and quantify the myriad ofrestrictions holding back economic development in the WestBank and Gaza, but the full picture remains blurred. Themain value proposition of this study is to assess andquantify the overall prospects for growth and jobs in theWest Bank and Gaza using a Computable General Equilibriummodel and taking into consideration the uncertain anddynamic environment of shifting boundaries, including thebroader economic benefits that could be achieved with analleviation of external and internal constraints. It isimportant to acknowledge that the external and domesticenvironments are in some cases interdependent. The studyanalyzes a number of different scenarios related to bothexternal and internal constraints. Given the politicalrealities, it is particularly important to study whatPalestine could do on its own to improve growth prospects.The hope is that this study could help the Palestinianauthorities and other stakeholders form a vision forinclusive, job-led growth and establish policy prioritiesdepending on the evolution of the geo-political environment.The study provides an outline of such a vision, drawing onthe findings of the scenarios discussed above and could befurther developed by incorporating the findings from theparallel Vision pieces under wayin trade and energy.Further, the study should help inform the Bank’s strategicand operational engagement with Palestine by highlightingkey reforms and investments needed to support higher andmore inclusive growth.
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