World Bank on Israel's destruction of Palestinian economy: half the Palestinians live on less than two dollars a day

Israeli-imposed closures in the West Bank and Gaza Strip are continuing to cause severe economic problems for Palestinians, according to a new report from the World Bank.

It says more than half the Palestinian population is now living on less than two dollars a day and that only massive foreign aid is preventing full economic collapse.

In a report meant to quantify in facts and figures the enormous human suffering the conflict with Israel is causing the Palestinian people, the WB says the main cause has been Israel's closure of routes from Palestinian areas into Israel and the imposition of curfews and closures in Palestinian towns and villages.

In Palestine, half the workforce is without a job and 60% - about two million people - live on less than $2 a day, the report said, adding that the private sector has borne the brunt of Israel's incursions, with agriculture and commercial assets suffering more than half of all physical damage.

The actions of the Israeli government have a direct impact on the Palestinian economy, the World Bank stresses.

The World Bank says the process of reforming the Palestinian Authority is crucial in rebuilding its international credibility.

It says considerable progress has been made but that the Authority risks losing its legitimacy to govern unless the full reform program is successful.

"The West Bank and Gaza has absorbed levels of unemployment that would have torn the social fabric in many other societies.

"For the long-term, the World Bank is concerned that the Palestinians' competitiveness is being eroded with each passing month."