Abstract
The study based on the available materials, facts and events shows chronic diseases of the Palestine’s fiscal situation. The authors see the main reasons for this in the fact that Israel managed to impose on the state of Palestine not only economic, organizational and managerial, but also political mechanisms and tools for managing and regulating the financial and budgetary sector. But this is not the only reason. The analysis focuses on the international controversy between two points of view: the first shows and defends the idea of the crisis of the Palestine’s fiscal situation. Its apologists attribute the reasons for this to the occupation of the Palestinian territory and to the occupation regime, undermining the possibility of creating normal living conditions for the Palestinians. The opposite view either denies the state of deep crisis in the financial and budgetary sector of Palestine or attributes it to the shortcomings and failures of the Administration unable to cope with the existing problems. The article analyzes in detail the influence of international actors, organizations and structures on the Palestine’s budgetary and financial situation. The results of the study do not give a clear answer as to how the existing problems will be resolved. Theoretically, they can be positively resolved only in case of creation of a full-fledged state of Palestine. In practice, Palestine and Israel are not able to resolve the problems of the inherent antagonistic conflict by themselves. But Israel today uses the capacity and skills of its administrators, managers and financiers and with the support, first of all, of the United States maintains its leadership and receives preferences in the financial and economic sphere of the Palestinian Autonomy. In the medium term, the fiscal situation of Palestine will retain its chronic problems and contradictions. Their aggravation will be associated with the outbreaks of radicalism and armed clashes in the structure of relations between the two countries and with the rise of radicalism within them.
Highlights
The study based on the available materials, facts and events shows chronic diseases of the Palestine’s fiscal situation
Given the specifics and features in which the Palestinian Authority operates, in our opinion, it is important to consider the financial and budgetary situation of the Autonomy by comparing the following two models: А) recognition of the deep and chronic crisis in this sphere as a result of the economic and political relations imposed on Palestine by Israel, which infringe on Palestine; the existence of the territories occupied by Israel, the regime of their exploitation and profit-making; B) denial of the deep crisis and shifting of the main blame to the Palestinian Authority itself, its ineffective policies in administering and managing the Palestinian economy, budget and finances
The cumulative knowledge gained from the analysis and study of policies and practices affecting the economy of the occupied Palestinian territory reveals chronic problems that have only worsened over the years. This is despite the fact that serious progress has been made today in identifying channels of fund diversion from the Palestinian budget to the treasury of Israel, and structures affiliated with it and with its financial and commercial organizations and institutions; an updated assessment has been prepared of the budgetary drain to Israel and other financial losses incurred by the state of Palestine as a result of restrictions imposed by the occupying power
Summary
The question of the Palestine’s fiscal situation in academic terms is related to the theories of relations between politics and economics and with the position of researchers, and of the centers and decision-making groups, including the Palestinian autonomy. Given the specifics and features in which the Palestinian Authority operates, in our opinion, it is important to consider the financial and budgetary situation of the Autonomy by comparing the following two models: А) recognition of the deep and chronic crisis in this sphere as a result of the economic and political relations imposed on Palestine by Israel, which infringe on Palestine; the existence of the territories occupied by Israel, the regime of their exploitation and profit-making; B) denial of the deep crisis and shifting of the main blame to the Palestinian Authority itself, its ineffective policies in administering and managing the Palestinian economy, budget and finances These are parallel processes around which Palestinian and Israeli societies are mobilized, which unite radicals and those ready to agree with Israel in Palestine, “hawks” and moderates in Israel. These processes continue to develop in Palestine, conditioning the current and foreshadowing the new forms of movement along the same path
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