Background Basics
Middle East Investment Initiative
The Middle East Investment Initiative (MEII), a partner organization of Middle East Progress, is an independent, non-profit organization founded by the Aspen Institute in 2005 to strengthen the economies of the Palestinian territories and other countries in the region, recognizing that a strong economic base is critical for social and political stability. Working in partnership with the Palestine Investment Fund (PIF), the U.S. Overseas Private Investment Corporation (OPIC) and CHF International, MEII uses innovative
Jump-Starting the Palestinian Economy
A group of prominent and active private sector Palestinian businessmen from the West Bank, Gaza and Jerusalem, made the following recommendations for revitalizing the Palestinian economy late last year:
Normalization of Movement and Access
• Improve movement of goods and people
• Increase VIP permits for investors and businessmen
• Ease restrictions on foreigners’ entry, particularly those of Palestinian origin, to Israel and the Palestinian territories for business-related purposes
• Increase and expedite the process for work permits for Palestinians in Gaza to
Surveying Gaza’s Economy
Overall Economy*
Employment
37%: Unemployment rate in the first quarter of 2009
~94%: Percentage of jobless workers who were formerly employed in the private sector (120,000 workers)
Industrial capacity
95%: Percentage of industrial establishments closed (3,750 companies) and/or destroyed (236 companies) since June 2007
20-50%: Capacity utilization in the remaining establishments
* Smuggling through tunnels between Egypt and Gaza forms part of an informal economy that is difficult to quantify
Trade
Imports
Obstacles to Movement and Access in the West Bank
History
In response to the second intifada, Israel began constructing a system of internal checkpoints in the West Bank and Gaza; and in 2002, the country began construction of a separation barrier. The checkpoints and barrier, along with a system of roadblocks, were put in place to curb the number of attacks in Israel.
Recent Events
On June 24, the UN Office for the Coordination of Human Affairs (OCHA) placed the total number of these internal
Palestinian Security Sector Development
At the end of 2005, Lieutenant General Keith W. Dayton was named United States Security Coordinator (USSC) for the Palestinian Authority and posted in Jerusalem. His mission is “the transformation and professionalization of the Palestinian security forces,” the enhancement of law and order and the improvement of security for Palestinians and Israelis. After Hamas took control of Gaza in June 2007, the focus of Dayton’s mission shifted to assisting the Palestinian Authority’s efforts to rebuild its forces in

