Economy Behind the Wall: Palestine’s Two Worlds

Historically ruled by the Ottoman Empire and later the British, Palestine has faced decades of territorial fragmentation and conflict following the UN’s 1947 partition plan and the subsequent establishment of Israel. Currently, the region is politically divided between the West Bank, where Fatah governs limited autonomous zones amidst expanding Israeli settlements, and the Gaza Strip, which is controlled by Hamas and subject to a strict land, sea, and air blockade. This severe military control and internal division have crippled the Palestinian economy, resulting in heavy dependence on international aid, high unemployment, and a GDP per capita that is a fraction of neighboring Israel's.