World Bank warns of “High Risk” in Israeli-Palestinian Conflict

If world leaders addressing the UN General Assembly neglected the Israeli-Palestinian conflict, the World Bank did not. On Tuesday, it issued a report in which it warned of the “high risk” of renewed conflict, noting that poverty continued to rise in the Palestinian territories for the third straight year. The issues listed as having “severe impact on the Palestinian economy” include “war, reduced donor aid, the suspension of revenue payments, and ongoing restrictions by Israel.” Noting that 16% of West Bank and 39% of Gaza Strip Palestinians live beneath the poverty line, the World Bank report concluded that, “the status quo is not sustainable and downside risks of further conflict and social unrest are high.” As for solutions, the report called for an end to the blockades imposed by Israel and Egypt, albeit “in a way that protects legitimate security concerns of those countries.” The report noted that potential exists for improvement in the economic situation even if a peace deal is not reached, “if existing agreements are enforced and restrictions are lifted.”