The closures imposed by Israel on the West Bank and the Gaza Strip since the end of October 2000 have had detrimental effects on the Palestinian economy, as well as the social and political lives of the Palestinian people.

The deployment of new Israeli military roadblocks, which cut off Palestinian areas from Israel as well as from each other, have prevented the flow of goods, services, and workers between Palestinian towns and villages, with great and long-term losses in Palestinian economic life.

125,000 Palestinians previously working in Israel are currently unemployed due to the Israeli-imposed closures, and the loss of their permits to enter areas inside Israel. Another 150,000 Palestinians working within the West Bank and the Gaza strip are also left unemployed due to the closures.

The average Palestinian worker in Israel was earning about NIS 110 or about USD 27.50 daily. As a group, these workers (125,000) were earning approximately USD 3.4 million each day. The impact of the closures has forced more than 100,000 Palestinian families to survive on less than NIS 8 (USD 2) per day. Although workers previously employed within Palestinian areas are better off than those employed in Israel, they are just surviving above or below poverty levels.

If the current closures continue until the end of this year, the World Bank estimates a GNP shortfall of USD 630 million, and a decrease of 11% in income per capita. Similarly, the percentage of Palestinians living below the poverty line will increase from 21% to 28.3%.

The continuation of Israeli closures in 2001 would result in a severe GNP shortfall of about USD 1.7 billion, a decrease by 27% in per capita income, and a rise of 43.7% in the percentage of Palestinians living below the poverty line.

The general implications of these economic losses will certainly have detrimental effects on the overall situation (political, social, and economic).