Majdi Mohammed, Associated Press
BEIT EL, West Bank — For Palestinians, the Israeli military coordination office on the outskirts of Jerusalem is a symbol of Israel's decades-long control over their lives. Now it has also become an unlikely source of hope for employment.
In response to an economic crisis gripping the West Bank, Israel has increased the number of permits for Palestinians to work in Israel. This has drawn large crowds of desperate men to the gray edifice each morning in chaotic scenes of long lines, frustrated faces and heated arguments as they try to secure a coveted permit.
At a time of double-digit unemployment in the West Bank, Palestinian workers, particularly people working in manual jobs like furniture moving, gardening and maintenance work, have few other options.
"It's a dream to get a permit and work in Israel," said Kayed Ashkar, 45, who is unemployed and a frequent visitor to the Israeli Civil Administration office. "I used to work there. I used to earn enough money for my family," said the former waiter, whose wife's modest salary in a local wedding hall supports their five children.
Israeli authorities have granted an additional 10,000 permits this year to work in Israel, raising the total number to 40,000. It's still well below the peak level of 200,000 in the 1990s, but the most since a violent Palestinian uprising erupted in late 2000. The uprising was characterized by suicide bombings and other attacks carried out by West Bank Palestinians, prompting Israel to revoke most permits.
An additional 25,000 Palestinians work in Israeli settlements in the West Bank, underscoring their dependence on the Israeli economy. The Palestinians as a rule harshly oppose the existence of the settlements on land they claim for their state.
U.N. figures say unemployment in the West Bank is 17 percent, a figure that may well under-represent the severity of the crisis, given the large numbers of underemployed in the West Bank.
The tough times have fueled an angry mood among Palestinians. Last month, in a rare move, thousands demonstrated against Prime Minister Salam Fayyad, blaming the U.S.-educated economist for their deepening impoverishment.
The Western-backed Palestinian Authority, the local autonomy government, has paid only partial salaries to its 114,000 civil servants in the West Bank, about 15 percent of the local work force, over the past few months because of a shortfall in its $4 billion budget.
The public sector is by far the biggest employer in the West Bank, forming the backbone of the Palestinian economy, so the government's inability to pay has rippled throughout the economy.
October's salaries haven't arrived yet, and the government has further angered Palestinians by announcing plans to fix the minimum wage at $345 a month, below the local poverty line. Also, taxes and prices for basic goods have risen.
The crisis has several causes. The Palestinian Authority is heavily dependent on foreign donors, and key backers, including the U.S. and Arab countries, haven't delivered promised aid.
Adding to the challenger, Israel continues to control 60 percent of the West Bank, constraining Palestinian growth and development. Israeli security policies also limit Palestinians' ability to import and export. Israel has taken steps, such as removing military checkpoints, to ease movement in and out of the territory, but the World Bank and others say it must do more. On the Palestinian side, attempts by Fayyad to increase taxes have been met with fierce resistance.
In a report to donors last month, the World Bank appeals to them to urgently prop up the Palestinian government.
"But even with this financial support, sustainable economic growth cannot be achieved without a removal of the barriers preventing private sector development," it warned.
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