The ongoing controversy over a possible merger of the Palestinian ministries of industry, trade and supply continues to engage officials of the Palestinian Authority (PA). The three ministries, whose purposes are interconnected and overlap in some respects, have been the focus of a debate since the establishment of the PA in 1993, according to Ramallah Al-Ayyam daily.
Many favor such a union, including the Palestinian Minster of industry Sa’di Al-Kurnuz. He believes that in order to cope with the host of problems facing the Palestinian economy, these ministries must strike a balance of interests by either merging or integrating their powers.
Al-Kurnuz feels that policy discrepancies between ministries inevitably affect the private sector detrimentally. He also believes that the government cannot be restructured so long as protectionism and the lack of restrictions on public employees making business transactions continues.
Tahir Al-Masri, the Palestinian minister of economy and trade, also supports the merger. According to Al-Masri, it is needless to have so many separate bodies overseeing the Palestinian economy so early on. He maintained that numerous ministries are only necessary for large, well-established economies. With an annual GDP of a mere four billion dollars, the PA is bogged down by bureaucracy, aggravated by the present separation of powers.
On the other hand, those opposing the union of the three ministries claim that a merger may lay to waste the separate achievements of each. Doubts exist that such a merger will inevitably be instituted inefficiently. They therefore urge, instead, a comprehensive in-depth analysis of the situation. Some also maintain that a merger would result in blocked access to the government by opposition factions.
Despite the disagreements, all believe that steps must be taken to strengthen and promote the Palestinian economy. Currently, the economy suffers from lack of sovereignty over the movement of its imports and exports, as well as a clear independent trade policy. According to Al-Masri, this can only happen once a peace agreement is signed with Israel, ensuring that the PA’s borders with Jordan and Egypt remain open.
Until then, measures such as the present ban on Jordanian cement, or of the import of Turkish cement, will continue. Lack of sovereignty also prevents the PA from being able to flex its muscle when faced with unfair trade barriers. Currently, though, these unfair trade barriers remain in place. The PA has free trade agreements with Egypt, Jordan, the United States and the EU.
Foreign competition is also a factor in the slow growth of the local Palestinian economy. However, says Al-Masri, an unofficial movement to replace Israeli products with Palestinian produced ones exists. Al-Masri refrained from calling the move a boycott, though. — (MENA Reports)
© 2001 Mena Report (www.menareport.com)
