PASSIA was supposed to attend this conference to present the results of a joint project undertaken in 1993/94 with the Centre for International Studies at the University of Toronto. The project was entitled "A Review of Literature and Economic Cooperation and Integration in the Middle East" and in its final form was a bibliography compiled by one Palestinian, one Jordanian and one Israeli team, which contained all available literature pertaining to economic integration and cooperation. Unfortunately due to several logistical and communication problems, political sensitivity and problems with the papers produced by the other two teams, PASSIA did not attend. Dr. Andrew Watson of the Centre for International Studies at the University of Toronto, who finalised the bibliographic project, attended the conference where he presented the paper that was written by PASSIA and the overall results of the prospects for integration and cooperation in the Middle East. What follows is the text of the paper which was presented at this conference detailing the findings of the PASSIA researchers.

"A Review of Literature on Economic Co-operation and Integration in the Middle East"

Places of Research.

The research work for "A Review of Literature on Economic Co-operation in the Middle East" took place in university libraries and in the libraries of research institutions, research centers and other organizations in the Occupied Territories. These included all of the following:

The West Bank University of BirZeit. Bethelehem University. An-Najah National University, Nablus. The Arab Studies Society, Jerusalem. The Arab Thought Forum, Jerusalem. The Palestinian Academic Society for the Study of International Affairs (PASSIA), Jerusalem. Arab Scientific Institute for Research and the Transfer of Technology (ASIR), Ramallah/El Bireh. The European-Palestine Chamber of Commerce, Jerusalem. Union of Agricultural Works Committee, Shu'fat. The Ma'an Centre for Development, Shu'fat. The Economic Development Group (EDG), Beit Hanina. Co-operative Development Project (CDP), Beit Hanina. Palestine Research Centre (PRC), Beit Hanina. The Hebrew University in Jerusalem . The Israel-Palestine Center for Research and Information (IPCRI), Jerusalem.

Research Methods. The actual research work involved compiling articles, books and general material which was suitable or relevant to the subject of the bibliography. This list of items was then transferred to a computer. The collection of Arabic titles involved transliteration and translation into English and other checks were constantly being made as regards number of pages, titles and publishers etc. The next stage was reviewing the collected items, which amounted to approximately 1,700, and deciding which should be included in the final bibliography. This involved first classifying the material by subject so as to ensure the final selection would cover as broad a range of areas as possible. Once this final selection of approximately 500 items was decided, work began on the annotation of certain inclusions that were either deemed significant or for which, information was readily available.

Difficulties. Several difficulties were noted in the course of this research project.

Firstly, the fact that there is no national Palestinian library made much of the work more time consuming that it would have been otherwise as some of the libraries, research or information centres used, were not always conveniently located. Furthermore, the libraries used often lacked full journal collections and full indexing systems which was another factor causing the research work to take longer than expected. Another aspect affecting the speed at which the research could be done was the Israeli closure policy and numerous strike days which disrupted the opening of many institutions.

Secondly, due to the nature of Palestinian life at the present time, (i.e. the transitional phase) there are an incredible amount of projects and new works occurring. Consequently, this made Palestinian time a very valuable commodity and many people who may have been able to advise us further with this project were too busy with their own work. Nevertheless many acknowledged the usefulness of the bibliography and stressed their commitment to future co-operation.

Key organizations and individuals. Rural Research Center - Nablus University. Birzeit Research Center - Birzeit University. Arab Scientific Institute for Research and the Transfer of Technology (ASIR), Ramallah/El Bireh. Land Research Center, (Arab Studies Society), Jerusalem. The Ma'an Centre for Development, Shu'fat. Palestinian Academic Society for the Study of International Affairs. (PASSIA), Jerusalem. Co-operative Development Project (CDP), Beit Hanina. Palestine Agricultural Relief Committee (PARC), Jerusalem. Arab Tourist Industry, Jerusalem. Palestinian Hydrology Group (PHG), Jerusalem. The Israel-Palestine Center for Research and Information (IPCRI), Jerusalem. BisanResearch and Development Center, Ramallah. In addition certain organisations, such as the Arab Organisation for Agricultural Development (AOAD); the Arab Organisation for Industrial Development (AOID); Network of Palestinian Institutions for the Reclamation of Agriculture; the Land and Research Center of the Arab Studies Society; University Research Centers; and a number of joint Israeli/Palestinian teams such as the Israel - Palestine Center for Research and Information (I.P.C.R.I.) also undertake and participate in research projects.

There are a number of individuals who are considered specialists in certain areas and the following are examples of individuals who are renowned in their own particular fields:

Agriculture. Abdul Rahman Abu Arafeh - Agricultural Scientist; Co-operative Development Project. Hisham Awartani - Professor of Agricultural Economics at an-Najah University. Banking and Financing. Hisham Jabr - Professor in Business administration at An-Najah University. Samir Huleileh - Economic Development Group. General Economics. Abdel Fatah Abu Shukor - Professor of Economics at an-Najah University; director of Arab Economist Society. Jad Isaaq - Director of Applied Research Development group; member of Palestinian delegation to the multilateral talks on the environment. Samir Abdallah - Professor of Economics at An-Najah University; director of the Palestinian Center for Peace and Democracy; member of Palestinian delegation to the peace process. Atef Alawneh - Economist; member of Palestinian delegation to the multilateral talks on economics; NGO consultant. Industry. Adel Samara - Director of Zahra Research Center. Housing. Bakir Abu Kishk - Economist (died in 1986). Water. Abdel Rahman Tamimi - Director, Palestinian Hydrology Group. Nader Al Khatib - Bethlehem University. Socio-economy. Salim Tamari - Professor of Sociology, Birzeit University. Service Sector. Samir Hazboun - DATA, Studies and Consultation, Bethlehem.

Financial support for Palestinian research is mainly dependent on grants or donations from outside. These are provided principally by non-governmental organisations, by governments as development aid, or by the specific organisation initiating the research project. Research is often required by a number of organisations involved in regional co-operation and development such as the Joint Jordanian-Palestinian Committee for the Steadfastness of the Palestinian People in the Occupied Palestinian Territories; the United Nations Conference on Trade and Development (UNCTAD); the United Nations Development Programme (UNDP); the United Nations Economic and Social Commission for Western Asia (UNESCWA). The World Bank; the International Labor Organisation (ILO); United Nations Economic and Social Council (UNESCO). Publication of research initiated by these bodies is usually local.

Research Findings. In the course of this project it was found that literature produced in the 1980s was very much influenced by the notion of sumud or `steadfastness' which was regarded as the key element characterising Palestinian resistance to occupation during that time. Since the intifada, and particularly since the events of 1993, the literature has become much more concerned with future potential and the possibilities of cooperation and development. Indeed the interest shown in this project by many of the organizations in which the research was carried out, suggests that there is high potential for future regional integration and cooperation. It seems that there is a willingness for economic co-operation as soon as more general improvements take place, however, a large degree of scepticism remains about the form that this co-operation could take.

In general it was found that the Palestinian economy has suffered more than twenty years of stagnation under administrative policies that have effectively been anti-developmental. Further declines occurred resulting from the intifada and the Gulf war, and, most recently, by the ongoing Israeli closure policy. The economic and social situation within the Palestinian community in the Territories is near breakdown as the effects of the closure continue to deprive the Palestinians of the income fed to them over the last 26 years in a structural economic dependency created through the military occupation and civil restriction on self-development.

The Palestinian economy can be seen as a low-performance, underdeveloped, dependent, subsistence economy, dominated in all spheres by Israel. The same is more or less true for the single economic sectors, no sector is progressing significantly either in terms of numbers employed or their contribution to the Gross Domestic Product, although there are some differentiations to be made. It was often noted that the agricultural sector, which formed the economic base in Palestinian society, has been almost completely devastated by Israeli policies. As well as restricting Palestinian agriculture on paper, huge amounts of agricultural land was confiscated and there was a considerable amount of agricultural sabotage. Consequently there is no longer a strong Palestinian agricultural base from which economic recovery could have been built.

Industry consists of primarily small-scale enterprises and since occupation, no significant changes have been noticeable in productive output, number and size of establishments, their contribution to the GDP, or the rate of employment. The industrial sector has suffered with the downturns in the Israeli economy but not benefitted when there have been upswings and expansion.

Trade is restricted from the Occupied Territories into Israel despite the fact that the territories currently provide a market for Israeli Products which is second only to the US.

Development in the Occupied Territories is restricted through the domination of the Territories' markets by subsidized Israeli products, the restriction and control of Palestinian trade, the absence of authorities promoting development, the lack of infrastructure and investment, and the absence of an adequate monetary system, all of which have had disastrous effects at the level of the Palestinian economy. It also created economic hardship that induced emigration and the exploitation of human as well as natural resources in the Occupied Territories.

The consequence is that there can be no implementation of comprehensive development plans in which the growth of the industrial sector would be used to stimulate other sectors and promote stable development.

The Occupied Territories are particularly vulnerable to external economic shocks, mainly those originating in the Palestinian communities of neighboring Arab countries for they have often kept living standards tolerable for many through income transfers and remittances.

Economic conditions and future economic development in the Occupied Territories will be determined by both, economic and political factors. With the continuation of the peace process and its difficulties, many Israelis and Palestinians remain sceptical about the future. While the Israeli side fears a Palestinian state and military attacks against Israel, the Palestinians are worried that the talks will lead to nothing more than a modified form of occupation. Both sides are aware that the economic price of the Arab-Israeli confrontation has been high and is increasing and that a real solution of the conflict will carry a high potential for future development.

There is a high potential for development inside the Occupied Territories with the strongest desire on the part of the Palestinians being to develop their infrastructure and economy independently as much as possible. Self reliance is given high priority and once a degree of independent development has taken place the potential for development and co-operation on a regional base increases. While this is a general desire, the West Bank has more chance of independent success and Gaza, because of its profound structural weakness, seems to have little choice but to remain highly dependent on Israel. Owing to the fact that Palestinian society was traditionally an agriculturally based society, studies available on this topic were found to predominate. Other fields in which most information is available include water and housing both of which are highly confrontational issues.

A considerable amount of material is also available on education and the future. Interest was expressed on further research in this area to investigate what the needs of the future would be and how educational programs could begin to prepare sectors of the population to fulfil these needs.

In the sector of tourism there is and has been considerable co-operation, however, this is another area in which an interest in further research was expressed. Tourism is one of the few areas in the Palestinian economy which already has a strong base but which will need to be further developed and made more efficient in the future.

Generally there is a lot of work now being done on future economic prospects, development potential, regional cooperation potential, restructuring of the economy and the need for adequate planning. Future plans are clearly for increased co-operation and expansion of economic sectors in whatever way feasible, however, more activity is needed to promote co-operation and integration in different areas. One suggestions for this is that there should be an increase in economic workshops and negotiation. Studies need to be made on the areas requiring further research or research at all and the researchers perceptions of probable costs, benefits, and obstacles. A need was also expressed for a general overview of prospects for economic co-operation and integration as seen from a Palestinian point of view. Today and equally in the future, as Palestinians attempt to develop their backard economy, they face a number of special problems. They must meet the challenge of returning refugees and their absorption into the labour market. There are other special difficulties facing the Palestinian economy which have to be considered. No other country in the area lacks the experience of trade and even local co-operation as does Palestine. Thus, owing to their dependence on others they are one step behind and have a lot of catching up to do. As all other Middle East nations, Palestine must ultimately find specialized economic niches and develop them to create a competitive economy and to play its role in Middle East regional co-operation.