Democratic Palestine : 29 (ص 16)
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- Democratic Palestine : 29 (ص 16)
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The Uprising’s Effects on the Israeli Economy
a
The heroic uprising of the Palestinian masses that erupted on December 9, 1987, and which is now enter-
ing its sixth month, has undoubtedly opened a new chapter in the Palestinian struggle against Israeli oc-
cupation. In addition to the political success of the uprising in moving towards civil disobedience, the
masses have waged another very daring war against the Israeli occupation forces in accordance with the
guidelines of the United National Leadership of the Uprising. This other war is the economic battle. In
mid-May, Israeli Economy Minister Gad Yacobi announced that the uprising had already cost ‘Israel’ at
least $650 million.
To realize the full effects of the
uprising on the Israeli economy, one
should trace the course of the 21-year
old occupation and the benefits gained
by the Israeli economy through subor-
dinating the West Bank and Gaza Strip,
and holding back their development to
achieve the Zionist dream of «A land
without a people for a people without a
land.»
Israeli control of the West Bank and
Gaza Strip has definite colonialist
characteristics.
The trade balance between the oc-
cupied territories and ‘Israel’ reveals
this colonialist relationship. For the
period of 1984/85, the occupied ter-
ritories exported $100 million worth of
goods to ‘Israel’ while importing $363
million from ‘Israel’. Fifty-five percent
of the occupied territories’ exports were
to ‘Israel’ while 90% of their imports
were from ‘Israel’. On the other hand,
10.6% of Israeli exports were to the
occupied territories. However, Dr.
Hisham Ortani of Najah University in
Nablus, points out that this percentage
reaches 25% if Israeli military exports
are excluded. Thus, the West Bank and
Gaza Strip are the second largest im-
porter of Israeli goods, after the United
States.
EFFECTS OF THE UPRISING
It is difficult to get exact figures on
the damage done to the Israeli economy
by the uprising. One, the Israelis are
very secretive about revealing statistics
on this subject, because they want to
avoid damaging their reputation with
their international trading partners.
Two, the real effects of the uprising are
of a long-term nature which cannot be
immediately assessed in numbers. This
is because the uprising challenges the
continuation of the occupation itself,
by having raised the slogan of
«freedom and independence.» Never-
16
theless, symptoms of recession have
been discernable since the beginning of
the uprising. These symptoms can be
summarized in four categories:
1. Palestinian workers from the oc-
cupied territories boycotting their jobs
in Israeli establishments, and resulting
losses to Israeli enterprise.
2. Reduction of consumption in the
occupied territories, and hence a
decline in sale and production of Israeli
goods.
3. Increase in military expenditures at
the expense of other productive sectors.
4. International economic pressure on
‘Israel’ due to its vicious repression of
the popular uprising.
1. PALESTINIAN
WORKERS’ BOYCOTT
According to Moshe Ketsav, the
Israeli labor minister, 105,000 Palesti-
nians from the occupied territories
work in ‘Israel’ - 51,000 in construc-
tion; 8,000 in agriculture; 20,000 in in-
dustry; 26,000 in general services and
20,000 in unspecified sectors. Palesti-
nians from the occupied territories
constitute 7-10% of the labor force in
‘Israel’. This might give the initial im-
pression that the absence of these
workers would not create any problems
for the Israeli economy, but in fact the
Opposite is true. In mid-January, the
Israeli newspaper Yediot Aharanot
reported that the absence of Gaza
workers from 28 Israeli factories alone
had cost employers $40-50 million; and
this is only a partial, provisional figure.
There are structural reasons why the
absence of Palestinian workers from
the occupied territories has a particular
impact on the Israeli economy. The
Palestinian labor force from the ter-
ritories is concentrated in unskilled, low
paid sectors where Israeli Jewish
workers avoid to work. In an article in
the Israeli daily Haaretz, January 22nd,
Jonathan Sherman says, «For years, a
strata of jobs has been established
where the majority (of workers) are
from the occupied territories. Their
abstention from working would create
a problem, because the Israeli economy
has not created a substitute labor force
that would be able to fill their jobs.
Although this will not threaten
economic stability, -a cut in 100,000
jobs at the base of the economic
pyramid has to shake the pyramid to
some degree.» According to Economy
Minister Gad Yacobi, there was a
10-20% monthy drop in overall pro-
duction, especially in the construction
field, during the last three months. This
resulted in a loss of at least $75million
(Associated Press, March 24th).
Knowing that a Palestinian worker
earns 30% of an Israeli Jewish worker’s
wage, the abstention of Palestinians
from work in Israeli establishments
reduces the savings that ‘Israel’ ac-
cumulates from wage differentials. In
the period 1968-85, ‘Israel’ saved
over $3 billion due to the difference in
wages paid to Palestinian and Jewish
workers. In addition, ‘Israel’ saved
$7.5 billion in the same period, in the
benefits and insurance that Palestinian
workers don’t receive, but which would
have been paid to Jewish workers. A
special report prepared by the Israeli
Department of Labor Services, and
published March 3rd, indicated that
30-40% of Palestinian workers from
the occupied territories were boycotting
their jobs in ‘Israel’.
2. SALES AND
PRODUCTION
Israeli factories that depend on the
occupied territories for disposing of
their products are suffering huge losses
due to the Palestinian boycott of their
products. For instance, food- - هو جزء من
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