Conclusion and recommendations

The signing of the Paris Protocol inspired a new state of optimism about the Palestinian economy. Expectations relied, inter alia, on the positive indicators of improved control and monitoring of public revenues and the maintenance of sustainable sources thereof. All of that was built on the hopes that under the Paris Protocol, PNA would be able to benefit from reasonable policy space. However, over 25 years, this optimism has dissipated, leaving PNA constrained and tied to trade and fiscal policies that do not foster the growth or development of its economy. The Paris Protocol has fostered a reality that allows only minimum policy space, leading to an enduring loss of revenues and a lack of control over the largest portion of these resources and resulting in fiscal leakage and losses from many sources, in addition to the temporary or permanent seizure by Israel of Palestinian revenues, a stark violation of the terms of the Paris Protocol.

Sustainable Development Goals:

No Poverty

Decent Work and Economic Growth