WASHINGTON, May 1, 2010 (WAFA)- The continuing volatility of the political and security situation in the West Bank and Gaza (WBG) and tight restrictions on movement and access, including the construction of the Separation Barrier – according to the Government of Israel necessary for security reasons – is fragmenting Palestinian economic space and depriving many Palestinians of their livelihoods and opportunity for future growth, the World Bank group said in the introduction of GZ-Palestinian P. NGO IV Project.

It added that land is of fundamental importance to economic activity and development. In the West Bank, economic activity is not only affected by conflict but also by restrictions on access to land and use of natural resources.

It said that the demarcations of Areas A, B, and C effectively allow Palestinians' control over populated areas but not over the vast majority of their natural resources and agricultural lands. Consequently, as the population grows and resource and development needs increase in all areas, but particularly in areas A and B, Palestinians have nowhere to expand to.

The population in areas A and B combined is estimated at 1.8 million, while the population in Area C is just under 250,000. Area C dwellers are mainly rural farmers and herders whose social indicators and access to services and infrastructure are already limited. While Israeli administrative and legal arrangements limit their development to the confines of existing villages, which already have too little space for demographic growth, 38 percent of the area where they live is taken to serve settlements and their infrastructure as well as the security apparatus that constrains the movement of people and goods, the World Bank group concluded the introduction.