An Analysis of The Economic Underdevelopment of Gaza & A Theory-Driven Look Forward

Date of Award

2024

Document Type

Thesis

Degree Name

Bachelors

Department

Social Sciences

First Advisor

Khemraj, Tarron

Area of Concentration

Economics

Abstract

This thesis conducts a review of the ancient and contemporary history of Gaza and its economy, as well as an in-depth review of the theories of economic development for the purpose of looking forward to Gaza’s future. The economic theories reviewed provide the theoretical basis necessary for understanding how to develop a nation, but all assume that sufficient, functioning, and non-corrupt institutions are in place. The section reviewing the pitfalls that Gaza has experienced make clear that Gaza lacks the necessary institutions for the theories in the theory section to work in Gaza. In practice, that means that first the institutions that Gunnar Myrdal’s 'Institutionalism' & New Institutional Economics outline must be created in Gaza. Then, a development process using the takeaways and lessons from the theory section and Gaza’s pitfalls can commence. The review indicates that at the heart of Gaza's economic underdevelopment have been: (1) acute corruption & rampant misuse of funds, (2) a lack of independent institutions (such as a vibrant judiciary and suitable business laws), (3) constant conflict, (4) Egypt & Israel's blockade of Gaza, & (5) a vicious cycle of poverty. These have conspired to produce a Gaza that has failed to move forward and has been stuck in a constant-conflict environment leading Gaza’s economic growth rate to stagnate and overwhelming poverty to run rampant. The pitfalls have left Gaza jarringly underdeveloped. The in-depth review of development economic theories provides theoretical explanations for Gaza's underdevelopment as well as methods through which Gaza can move towards escaping its current underdevelopment, after the necessary institutions are put in place. With Gaza’s manufacturing largely non-existent, no tourism and a complete lack of the other industries that the nations at the 'center' of the world's production structure rely on, the ‘Prebisch-Singer Hypothesis' makes clear that expecting Gaza to be anything other than falling behind would be foolish. Using the takeaways from the theory section, this thesis ends with a concise few pages on the lessons that Gaza should take from this thesis and a series of wide-angle guidelines and advice for the future of Gaza.

This document is currently not available here.

Share

COinS