Creating an Economically Enabling and Competitive Business Environment in the West Bank and Gaza Strip

The prospect of indefinite Israeli occupation of the Palestinian territories, and their extreme dependence on foreign assistance and Israeli-controlled customs revenues, had led to the conclusion that the Palestinian economy needs to de-link from the Israeli economy, promote domestic trade and orient economic relations toward other countries, especially Arab neighbours. Whereas establishing new international economic relations will take time and must be pursued at the intergovernmental level, improving the domestic business environment is feasible using available policy instruments and regulatory provisions.

This project will address the need to upgrade policies and regulations governing the scope of operations of private sector enterprises in the West Bank and Gaza. Building on work carried out under projects 102142 and 102742, the Palestine Economic Policy Research Institute (MAS, from its Arabic acronym) will study the structure and performance of the private sector and provide sound, evidence-based inputs to policy debate.

In light of the landslide victory of Hamas in January 2006 and in line with Canadian policy, the target audience and project collaborator will not be the policymakers themselves, but rather the Palestine Private Sector Coordinating Council (PPSCC), the representative body of the private sector. The project outputs will enlighten the private sector about its contribution to growth and poverty alleviation and serve as lobbying tools for evidence-based policymaking.

Project ID


Project status


Start Date

Tuesday, July 25, 2006

End Date

Wednesday, December 17, 2008


24 months

IDRC Officer

Joekes, Susan

Total funding

CA$ 359,600


Middle East, North of Sahara, South of Sahara, Central Asia, Far East Asia, South Asia, West Bank and Gaza


Employment and Growth

Project Leader

Makhool, Basim


Palestine Economic Policy Research Institute

Institution Country

West Bank and Gaza

Institution Website