A Chance for Economic Growth Amidst the Conflict
November 1, 2003
Although it seems at times that the Middle East is more about political conflict than economic opportunity, beneath the turmoil there exist signs of healthy economic developments. Egypt, the Palestinian territories, Jordan, and Israel are some of the shining stars in a region that holds 8 percent of the world's population. Although dwindling tourist dollars and stagnant foreign investment have hurt countries like Egypt, the country's $100 billion (GDP) economy is exhibiting signs of moderate growth. Other developments, such as the Palestine Investment Fund, organized by Salam Fayyad, the finance minister of the Palestinian Authority, which rules the West Bank and Gaza, has more than a few people impressed. Monies collected from its citizens ($600 million), which previously were used at Chairman Yasser Arafat's discretion, are now being invested directly into local companies. Oversight of the fund is coming in part from the Los Angeles-based Democracy Council, whose president, James Prince, has his sights set on creating a border company for Gaza to perform freight and security services on the 500 trucks that cross the Israeli border daily. Meanwhile, the two-year old U.S.-Jordan free trade agreement is starting to pay off for the textile and apparel industries. Also encouraging is the cooperation between Israel and the Palestinian Authority on a water treatment project, which is also receiving support from the Milken Institute in Santa Monica, California. Now, that's growth.
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