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Private Sector Development in Palestine
Hosted by Adam Neiman (July 2008)
The recent Palestinian Investment Conference in Bethlehem marked the beginning of a new international initiative to stimulate private sector development in the West Bank. The event was very promising- a potentially problematic quality in an over-promised land. There may not be a place in the world where private sector development is more urgently needed or more challenging. Development is no substitute for a diplomatic solution but no diplomatic solution can be sustained without a sustainable Palestinian economy. The political situation places many roadblocks to economic development – literal as well as figurative.
There are also some unique contours to the Palestinian economy that make traditional developmental models problematic.
Palestine has a narrow resource base, including limited water supplies and an unemployment rate (40%) comparable to the most disadvantaged countries of the developing world. But because of the donor countries and the linkage to the Israeli economy, the cost of living is far higher. A traditional free trade model, starting on the bottom rung and competing as a low wage producer, is not an option.
But Palestine has also a few advantages. The population is much better educated than usual for an early stage developing country. It has a market economy with a remarkably resilient and resourceful business community. There is a far-flung Diaspora, many of whose members are highly successful entrepreneurs and financiers. Because of its geopolitical importance, there are significant resources in the form of loan guarantees from the donor countries for internal investment as well as other types of developmental assistance.
My company, No Sweat Apparel, has been working on the West Bank since 2006. We produce organic cotton T-shirts at a sweatshop-free Palestinian owned factory on Virgin Mary Street in Bethlehem.
I came away from the Palestinian Investment Conference both encouraged and concerned. I have a couple of questions in particular that I thought the community of social entrepreneurs here at Social Edge might have some insight into:
2. Could “Made in Palestine” products have a competitive advantage? If so, how and where?
Join Adam Neiman, CEO of No Sweat Apparel, in the conversation.


"Made in Palestine" Brand
Even better would be a brand that was made by Palestinians and Israelis, with a percentage of the profits going to support non-profit organizations that bring Israelis and Palestinians together, especially youth programs.