Israel-Palestine: For Human Values in the Absence of a Just Peace | Page 46

Israel-Palestine: For Human Values in the Absence of a Just Peace

Area C is also rich in stone, with estimated deposits of some 5,000 acres of
quarryable land. Palestinian stone mining and quarrying is already Palestinian
territories’ largest export industry, based on the famous Jerusalem Gold Stone. However,
this is a struggling industry, due to Israeli refusal to permit opening new quarries or to
renew permits for most existing quarries in Area C. If these restrictions were lifted, the
Bank report estimates that the industry could double in size, increasing value added by
some USD 241 million—and adding 2 percent to 2011 Palestinian GDP.
The construction industry is in acute need of additional land to expand housing and
make it more affordable. Areas A and B are already very densely populated and built up.
United Nations Office for the Coordination of Humanitarian Affairs (UNOCHA) analysis
suggests that less than 1 percent of the land in Area C is currently available to
Palestinians for construction; permit data also show that it is almost impossible for
Palestinian to obtain permission to build in Area C. Less than 6 percent of all Palestinian
requests made between 2000 and 2007 secured approval—while Israelis routinely get
permits. This situation applies not only to housing but also to public economic
infrastructure (roads, water reservoirs, waste treatment plants) and industrial plant, and to
the access roads and utility lines needed to connect Areas A and B across Area C. These
factors have substantially suppressed growth in the construction sector and have led
housing prices in the West Bank to increase over the past two decades by about a fourth
above what would otherwise be expected. Lifting the tight restrictions on the construction
of residential and commercial buildings alone (excluding infrastructure projects) could
increase West Bank construction sector value added by some USD 239 million per
annum—or 2 percent of 2011 Palestinian GDP.
Area C has major global tourism potential, but for Palestinians this remains largely
unexploited, mostly due to restrictions on access and investment, in particular around the
Dead Sea. Palestinian Dead Sea tourism development was envisaged in the Interim
Agreement, but has not yet emerged. Israeli settlement enterprises, on the other hand,
have expanded tourism and other activities in the area. If current restrictions are lifted
and investment climate in the West Bank improves, it is reasonable to assume that
Palestinian investors would be able to create a Dead Sea hotel industry equivalent to
Israel’s, producing value added of some USD 126 million per annum—or 1 percent of
2011 Palestinian GDP. Investments to develop other attractive tourism locations in Area
C could generate substantial additional revenues.
The development of the Palestinian telecommunications sector is constrained by
Area C restrictions that prevent the construction of towers for mobile service and have
impeded the laying of landlines and asymmetric digital subscriber line (ADSL) cable.
Israeli authorities have granted the two Palestinian mobile operators to only limited 2G
frequencies in West Bank Palestinian area, and no access to the 3G spectrum. By
contrast, Israeli settlements in the West Bank and East Jerusalem almost all have 3G or
4G.ci Importation of equipment has also been difficult. As a result, Palestinian
telecommunications costs are high, and coverage and service quality are poor. The 3G
restrictions in particular threaten the industry’s viability, particularly since Israeli settlers
are allowed to develop their competing infrastructure in Area C. The World Bank report

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