While Yasser Arafat has caused untold human suffering to Jews and Arabs alike, he has also destroyed the economy of the areas under his jurisdiction. Arafat has allowed and encouraged monopolies run by political cronies to take over some markets thereby driving away even Arab investors. His unleashing of terrorists on Israeli cities has lead to perpetual closures, leaving huge numbers of Arabs unemployed. In addition, Israeli retaliations have attendant material costs. Despite US pleas to allow tax revenues to be turned over to the PA, Israel has withheld the monies, intended for paying PA soldiers’ salaries, since the start of the warfare. Financial assistance from donor countries is siphoned off to multiple levels of corruption before reaching the Arab street, if at all.
The Israeli economy too, has not been immune from the effects of terrorism. Unemployment in Israel has reached record levels, with a 3.7% increase this past month alone. The dramatic change in employment figures has been traced to the negative effects of the terrorist war on various areas of the Israeli economy.
Tourism to Israel, a major source of income for the country, has dropped dramatically. Hotels are near empty of foreigners, and tourist sites are operating at low capacity. Foreign investment proceeds apace, but the hi-tech sector suffers from a world-wide slow down. Some sports and cultural events have been cancelled or limited in scope due to fears of the players and performers, the latest of which was the cancellation of the Red Hot Chili Peppers concerts in Israel this week.
Israeli exports to the Palestinian Authority, once a lucrative source of income, have been reduced to almost nothing. Israeli goods included in European shipments have been turned away from Arab ports in the Gulf, and a popular boycott of anything Israeli has taken hold in Egypt and elsewhere. Many entrepreneurs in Judea, Samaria and Gaza have had to fold up their businesses, and other residents have lost jobs because of difficulties in getting to and from work. More direct effects of terrorism are the costs involved in rehabilitation of its victims, insurance for the property damages and lost wages when Israeli institutions are forced to limit their activities in Judea, Samaria and Gaza.
The Israeli economy too, has not been immune from the effects of terrorism. Unemployment in Israel has reached record levels, with a 3.7% increase this past month alone. The dramatic change in employment figures has been traced to the negative effects of the terrorist war on various areas of the Israeli economy.
Tourism to Israel, a major source of income for the country, has dropped dramatically. Hotels are near empty of foreigners, and tourist sites are operating at low capacity. Foreign investment proceeds apace, but the hi-tech sector suffers from a world-wide slow down. Some sports and cultural events have been cancelled or limited in scope due to fears of the players and performers, the latest of which was the cancellation of the Red Hot Chili Peppers concerts in Israel this week.
Israeli exports to the Palestinian Authority, once a lucrative source of income, have been reduced to almost nothing. Israeli goods included in European shipments have been turned away from Arab ports in the Gulf, and a popular boycott of anything Israeli has taken hold in Egypt and elsewhere. Many entrepreneurs in Judea, Samaria and Gaza have had to fold up their businesses, and other residents have lost jobs because of difficulties in getting to and from work. More direct effects of terrorism are the costs involved in rehabilitation of its victims, insurance for the property damages and lost wages when Israeli institutions are forced to limit their activities in Judea, Samaria and Gaza.