Review Economic Squeeze

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Note

This section was written way before the Hamas Oct 7, 2023 attack on Israel. The subsequent articles broach how the PEIS Plan applies to the Israeli-Hamas Gaza War.

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Summary

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- **Economic Dependence**: The Palestinian Authority (PA) relies on three main revenue sources: internal taxes, Israeli remittances, and foreign aid.
- **Israeli Control**: Israel indirectly controls internal taxes and directly controls remittances, impacting the PA's financial stability based on political relations.
- **Foreign Aid**: Although foreign aid bypasses Israeli control, much of it is spent on Israeli goods and services, reducing its net benefit to the PA.
- **Economic Strain**: The PA faces significant economic challenges due to these dependencies, likened to being "screwed" by the situation.