Economics and Politics in the Middle East

The economic system that combines the Israeli and Palestinian economies is very unusual and probably unique in its characteristics and features: these are two (or three) intertwined systems involving a heavy dependence among societies that are not in a state of peace. The special nature of the phenomenon creates a deep sensitivity toward economic activity, employment and the standard of living, and on to the political and security conditions. The latter, being unstable and uncertain, create frequent fluctuations of economic variables. The lecture will describe this situation with an emphasis on the interaction between politics and economics and analyze the major problems that arise.