ILO reports dire economic, social crisis in occupied territories
Palestine, Economics, 6/1/2002

Warning of a "socio-economic meltdown" in the occupied territories, the International Labor Organization (ILO) on Thursday called on Israel to ease movement restrictions on Palestinians and urged the world community to support a dialogue between the two sides.

In a new report which will be presented to the agency's annual conference next week, the ILO examines both the "deep humanitarian crisis" facing Palestinian families as well as the "very negative impact" of the current situation on Israel's economy.

Real wages for Palestinian workers in Israel dropped by nearly 46% in 2001 compared to the preceding year, while the revenue of the Palestinian Authority plummeted by more than 70%, according to the report. Preliminary ILO estimates suggest that "unemployment could have reached nearly 43% in the occupied territories during the first quarter of 2002."

Israel's economic activity also has suffered a severe contraction during 2001, with GDP declining by 0.5% that year after an increase of 6.4% in 2000.

ILO Director-General Juan Somavia said the international community, notably those countries with greater influence, "need to reassess the means of action so we can respond to what all families in the region want: parents at work, children at school, security in the streets and peace in the community."

The ILO Director-General called peace "the innermost aspiration of the large majority of Palestinians and Israelis" and added, "The world must help them to get there."

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