The economic policy framework of the Palestinian National Authority (PNA), and the narrow range of policy instruments/space it makes available to the Palestinian decision makers, has been shaped by the 1994 Paris Protocol on Economic Relations between the Palestinian Liberation Organization (PLO) and Israel. This protocol, together with a multitude of restrictions and political instability have severely constrained Palestinian public and private sector economic activities and fostered the coercive economic dependence of the Occupied Palestinian Territory (OPT) on Israel.

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