Economic Policy and Manufacturing Performance in Developing Countries

Economic Policy and Manufacturing Performance in Developing Countries

Edited by Oliver Morrissey and Michael Tribe

This book considers the impact of economic reforms on manufacturing performance and explores policy options for promoting manufacturing. Using country-specific case studies spanning Africa, South Asia, South East Asia and Latin America, the authors examine the evidence for and against both trade liberalisation and government support policy.

Chapter 10: Small-scale industry in the Gaza Strip

Muhammed Migdad, Hossein Jalilian and John Weiss

Subjects: development studies, development economics, economics and finance, development economics, industrial economics


Muhammed Migdad, Hossein Jalilian and John Weiss 1 INTRODUCTION This chapter discusses the current situation of the small-scale industrial sector in the Gaza Strip (with the West Bank, one of the two Occupied Territories of Palestine) a small land area of around 360 sq. km occupied by Israel since the 1967 war and now part of the New Palestinian Entity (NPE). Gaza is one of the most densely populated areas of the world (total population is estimated at more than one million) and is subject to a lack of natural resources, particularly water. Unemployment is a very serious problem with a high level of external migration of those with qualifications and skills and a heavy dependence on Israel for employment. Currently around 40 per cent of the population with jobs work in Israel (World Bank, 1993–96). Industry in the Gaza Strip is largely small-scale and has suffered severely from the political instability of the region with the major disruption to economic life of the Intifada period and the more recent border closures imposed by Israeli governments. The chapter commences by giving a brief background to the economy of Gaza and the problems facing industry there. It then discusses the results of a survey of firms conducted in 1996–97 by one of the authors, covering a sample of 150 firms, which is approximately 30 per cent of all formally registered firms with five or more workers. To our knowledge this is the most detailed study to date on...

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