A comprehensive analysis of the settlements' economic costs and alternative costs to the State of Israel - 2015

2015 was marked by many storms on political and socio-economic issues, whether it is the rising violence, the elections, economic instability or tensions between different parts of society. Most of these storms are closely related to the direct and constant political deadlock with the Palestinians. The on-goiong West Bank settlement settlement policy involves high costs and heavy burden on the economy and society, and it does not matter if the reason is security or civil expenses, a slowdown in investments or threats of boycotts.

As we have seen in the 2014 report, the settlements policy and its implications generates direct and indirect costs, explicit and implicit, of substantial volume to the Israeli economy. Explicit costs includes construction of buildings and infrastructure in the settlements, military action to secure the settlers, subsidies and government incentives. Hidden indirect costs include: a decrease in investment by domestic factors and foreign factors, a slowdown in exports and a reduction in economic cooperation with scientific and international bodies as a result of boycotts.

The report updates a comprehensive study conducted a year ago and tried to accurately estimate the cost of the settlements in the West Bank. In addition, using the full scheme of construction, we estimated the long-term value of investments private and public in the West Bank. another test involved assessing the current and future effects of boycotts and sanctions imposed may be imposed in the future on the general state of Israel and the West Bank in particular.

Executive summary in English is attached.