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CNN World Report

Palestinian Economy Severely Impacted by Months of Violence

Aired June 10, 2001 - 14:02   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
OCTAVIA NASR, CNN ANCHOR: We begin in the Middle East, where eight months of clashes between Israeli forces and Palestinians have resulted in the death more than 500 people, mostly Palestinians. What began as a stone-throwing uprising against Israeli occupation has given way to Palestinian suicide bombs inside Israel and counterattacks by Israeli forces.

In the meantime, Israel continues to tighten its closure on Palestinian territories. According to an International Labor Organization report, those closures have led to a, quote, "serious deterioration in the lives of Palestinian workers." Israel maintains these are security measures and not targeting innocent Palestinians.

(BEGIN VIDEO CLIP)

ARIEL SHARON, ISRAELI PRIME MINISTER: I made it very clear that we are going to draw a very clear distinction between the Palestinian population which is involved in terror and the only thing that would like is to bring some food home and raise their children quietly. For them, it will ease the conditions, and this has nothing to do with any security situations. As a matter of fact, we are doing that.

(END VIDEO CLIP)

NASR: Now Palestinian have a different view on the closures. We get this perspective from Al-Qud Educational TV.

(BEGIN VIDEOTAPE)

BENAZ BATRAWI, AL-QUD EDUCATIONAL TV REPORTER (voice-over): Business in Palestinian markets has gone down due to the Israeli closure that prevents movement of goods as well as people from one area to another. If survived from the uprooting by Israeli bulldozers, agricultural products are being kept for long hours at Israeli checkpoints.

UNIDENTIFIED MALE (through translator): We walked 35 kilometers to come here instead of eight. We come here in order to make a living to be able to feed our children. Our situation is very difficult.

BATRAWI: The agricultural sector in Palestine, experts say, lost about $300 million since last September.

UNIDENTIFIED MALE (through translator): Stocking goods for sale is a big gamble. We have no idea what will happen. Do you see any people around? Within an hour, this place will be deserted. We barely make enough for our daily bread.

BATRAWI: As for the industrial sector, the loss is much greater, and is estimate at nearly $600 million in the past seven months. This dairy products factory in Ramallah was opened a few months before the eruption of the intifada, aiming at providing the Palestinian market in the West Bank and Gaza with products.

Today, it's not only losing money, but also workers.

SAED SABRI, MARKETING MANAGER: The laborers, the Palestinian workers, they are living beside Ramallah, in getting here, they're being stopped by the checkpoints or they're living the area that recognized by the Israelis as a closed area. The Israelis, they have prevented almost 60 percent of our workers from getting. We are losing actually, around $70,000.

BATRAWI (on camera): It took the Palestinians seven years to pave the road for building a national economy, while it only takes seven months for the Israelis to destroy it.

Benaz Batrawi, Al-Qud Educational Television for CNN "WORLD REPORT" in Ramallah.

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