In the quiet village of Nilin in the West Bank, a profound economic crisis is gripping its residents. The olive trees, standing tall and ancient, are a reminder of a time long before the Palestinian families' livelihoods became entangled in the complex web of Israeli occupation.
Ten years ago, when Israel established a checkpoint near the Mousa family's land, they were forced to relinquish their ancestral farm and convert it into a parking lot for Palestinian workers crossing into Israel. However, since October 7th, when Hamas militants attacked Israel from the Gaza Strip, Palestinian workers from the West Bank have been barred from entering Israel, leaving the family in dire straits.
The consequences of Israel's decision to sever economic ties with the West Bank have been detrimental to the already beleaguered Palestinian economy. Economists and Palestinian officials warn of an impending crisis that not only weakens the Palestinian Authority but also undermines its ability to expand and administer autonomous regions in the West Bank, as outlined in interim peace deals.
In Nilin, the impact is palpable. Prior to October, thousands of Palestinian workers would cross the checkpoint daily, seeking employment on Israeli construction sites and farms, while Israeli shoppers would patronize businesses in the West Bank. However, with the checkpoint firmly shut since the escalation of the conflict, the economy of Nilin has taken a severe blow. Local supermarkets are struggling, prices have skyrocketed, and sales have plummeted. The once bustling streets of Nilin, filled with Israeli shoppers seeking affordable goods, now bear a desolate appearance.
Alaa Mousa, a former construction worker who relied on daily trips to Israel for work, now finds himself unemployed. With two children to feed, he depends on the goodwill of local supermarkets just to make ends meet. However, even these stores are hanging on by a thread, facing financial difficulties due to increased transportation and supplier costs. The economic downturn is taking its toll on the whole community, with a third of Nilin's residents losing their jobs, a fifth of university students unable to pay tuition, and commercial revenue dropping by 40%.
The situation in Nilin is not an isolated incident. The World Bank reports that throughout the West Bank, unemployment rates have tripled since the conflict began, with a third of the population now unemployed. Government employees have experienced salary cuts, and intermittent closures of military checkpoints have dealt severe blows to commerce. Israel's operation of 400 checkpoints in the territory has turned short supply trips into hours-long journeys, exacerbating the economic decline.
As a result, the Palestinian economy in the West Bank contracted by over a fifth in the last quarter of 2023, leading to the closure or reduced production of a third of businesses and the loss of a third of all jobs. The daily losses amount to a staggering $25 million. The dire economic crisis is compounded by the financial struggle of the Palestinian Authority, the largest employer in the region. With Israel withholding tax revenues collected on behalf of the Palestinians and the U.S. urging their release to no avail, the Palestinian Authority has been unable to pay full salaries to its employees.
The loss of Palestinian workers from Gaza exacerbates the already precarious situation. Although Israel has made allowances for some workers from the West Bank to return to Israeli settlements, the future of this labor arrangement remains uncertain. The Israeli economy has also been affected, with construction sites shutting down and the industry coming to a standstill.
Meanwhile, the Mousa family in Nilin faces the bitter reality of their former farmland transformed into a barren parking lot. Mohammed Mousa reminisces about a time when his family raised chickens and pressed olives into oil. However, clashes between Israeli security forces and Palestinians resulted in a demolition order for their chicken coop, and now weeds poke through the dusty grounds of the parking lot.
As the war in Gaza rages on, the people of Nilin hold their breath. They hope for a swift end to the conflict so that life can return to some semblance of normalcy. They yearn for the reopening of the checkpoint, for the resumption of economic activity that once sustained their community. Until then, the residents of Nilin continue to grapple with an economic crisis that threatens their very existence.
