The Legal Reform of the Palestinian Economy:
Illusions and Reality
Abstract
Jamil Salem
The Palestinian legislator assigns a special priority to Palestinian and foreign large enterprises. In the early phase of the Palestinian Authority, most economic visions were focused on foreign large enterprises. A statement that was common then is that Palestine would become the Singapore of the Middle East. Of the pieces of legislation that served this approach was the Law of the Promotion of Investment, which concentrates on enterprises with large capitals. In addition, a number of other regulations were enacted to serve large enterprises. However, the PA did not allocate sufficient importance to the needs of the majority of enterprises: small enterprises.
Consecutive economic and political developments could have caused the collapse of the Palestinian economy. However, active and sustainable small and medium enterprises (SMEs) have kept the Palestinian economy running. In the absence of security and stability, SMEs were able to adapt to economic, political and security changes for an extended period of time. On the other hand, large enterprises were greatly affected due to continuing changes, which led to the closure of several enterprises or dismissing a large number of workers and employees.
SMEs could operate at the time when the state and its institutions faced various financial and security problems.
The paper reviews the package of Palestinian economic, commercial and financial laws which are currently effective or are under discussion and preparation.
Illusions and Reality
Abstract
Jamil Salem
The Palestinian legislator assigns a special priority to Palestinian and foreign large enterprises. In the early phase of the Palestinian Authority, most economic visions were focused on foreign large enterprises. A statement that was common then is that Palestine would become the Singapore of the Middle East. Of the pieces of legislation that served this approach was the Law of the Promotion of Investment, which concentrates on enterprises with large capitals. In addition, a number of other regulations were enacted to serve large enterprises. However, the PA did not allocate sufficient importance to the needs of the majority of enterprises: small enterprises.
Consecutive economic and political developments could have caused the collapse of the Palestinian economy. However, active and sustainable small and medium enterprises (SMEs) have kept the Palestinian economy running. In the absence of security and stability, SMEs were able to adapt to economic, political and security changes for an extended period of time. On the other hand, large enterprises were greatly affected due to continuing changes, which led to the closure of several enterprises or dismissing a large number of workers and employees.
SMEs could operate at the time when the state and its institutions faced various financial and security problems.
The paper reviews the package of Palestinian economic, commercial and financial laws which are currently effective or are under discussion and preparation.
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