ABSTRACT

The Palestinians have lived under occupation since the 1948. The population of the West Bank and the Gaza Strip (GS) is 2,601,669 (PCBS, 1999), while another 3.3 million refugees are living in neighbouring Arab States (UNRWA, 1997). GS came under Israeli occupation from 1967 until the peace treaty in September 1993. During the occupation period the Palestinian economy was completely controlled by Israel. After the peace agreement and the economic accord in Paris 1994, the Palestinians looked forward to establishing a strong and independent economy. However, the results of these agreements are 'negative', the income per individual decreased 20% during four years (1993-1997) and the inflation rate increased 30% (Kanan, 1998).