MESS Report / In the West Bank, new cars signal the good life
The multitude of car dealerships springing up in cities like Nablus and Jenin reflect the economic growth that is taking place in the West Bank.
By Avi Issacharoff Tags: Israel news West Bank PalestiniansNew car lots and showrooms, offering vehicles of every kind but mainly Korean, have sprung up at the entrances to Nablus, from the Hawara checkpoint in the south and from the west. Similar showrooms have appeared at Jenin's southern and northern entrances.
The dealerships, showing brand-new cars, reflect the economic growth in the West Bank. While in the '90s, West Bank cities served as a hideout for cars stolen from Israel, today their streets are lined with just-bought models.
A Palestinian journalist in Nablus calls it "the car intifada."
Palestinian and Arab banks in the West Bank are offering loans making it easier than ever to own a new car. Anyone who has a job can pay 10 percent down and borrow 90 percent of a new car's cost from the bank, payable with interest over five to six years.
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New cars waiting to be sold in Jenin, where the market for luxury cars is booming. |
| Photo by: Saif Dahlah |
Until the loan is paid in full, the car is considered bank property.
Kia and Hyundai are especially popular in view of their low price. The biggest demand is for their four-wheel-drive models, but prestigious European cars are also selling well. The Al-Bustami company, for example, deals exclusively in German cars such as BMW, Mercedes and Golf. Japanese cars, too, are in demand. A'alab Al-Hafi, the owner of the car dealership Hafiko, sells mostly Mitsubishi. He says the great improvement in West Bank security means people to want to buy new cars. "Before 2000, I sold about 20 cars a month. Afterward, until 2007, almost no cars were sold. Since then, there has been a significant improvement, both economic and in security."
Al-Hafi says things are definitely better than they used to be. "The dealerships have been renovated and are offering new merchandise. We sell cars from all over the world. They must be up to Israeli standards, of course, and come via Jordan or the Ashdod port."
But cars are only part of the economic development story. A shopping mall has opened on the ground floor of a new Nablus office building. The city center is thriving, the open-air markets, clothing stores and cafes are bustling. In Jenin, not far from the former settlements of Ganim and Kadim, the Dahyat al-Jinan neighborhood is being built. It will have brand-new power and water infrastructure, parks and services, all carefully planned. A new neighborhood, Rehan, is being built in Ramallah. Al-Hafi says his family has bought three apartments in the new neighborhood, which will have private homes as well.
Nablus' oldest mosque, in the city's casbah, is being renovated, and the market square is clean and tidy.
A former Al-Aqsa Brigades activist, once on Israel's wanted list, has married and gone into the family business. His friends have also "retired" from militant activities and become business people. These days he works with youths, helping them to resist "tempting" offers to join militant groups.
The disappearance of fugitives from city streets is perhaps the key to the dramatic change in the Palestinian cities. Most people credit the change to Palestinian Authority Prime Minister Salam Fayyad, who against all odds brought about an economic revolution to the West Bank.
Fayyad, whom Palestinians can't stop praising, is becoming increasingly popular for his performance and his successes.
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Yes, Tariq, this prosperity might really be working well to dull the Resistance movement in the West Bank. I suppose it is nice to have a car and other goodies, but those in the PA who are currently living the good (or at least materially better) life would do well to learn what the consequences are of selling one's birthright for a mess of pottage.
Not a chance! They will continue to preach hatred in that squalid cesspool known as Gaza. As Iran's pet poodle, Hamas will reap the “benefits” of zero growth and no economy. Nor will it ever have one until Hamas moves into the 21st century and behaves like responsible, civilized human beings. The world is not holding its breath for that to happen anytime soon.
After long experience with the Palestinian resistance, coercion could not co-opt resistance. Learning from other experiences such that of Latin America, where neo-liberal agenda co-opted social movements and militant forces, the same is happening in the OPT. Palestinian NGOs became agents of such agenda which penetrated the society from bellow. While Fyad's government (the World Bank branch in Palestine) is progressing in this policy from up-down, add to that the so called "economic peace". This is a serious attempt to get rid of resistance and apparently and unfortunately it is working well!
Fayad's economic-social reforms are an attempt to do what the World Bank and the WTO does everywhere they touch ground. They globalize the local economy and make its potential available to the rest of the world. That means, of course, Israeli industrialists are likely to outsource their labor intensive needs to the Arab Palestinians, as they started to do after Oslo with the prosperity that they experienced up the the onset of the Intifada. Now that China is paying its workforce more, there must be some place cheaper, and . . . guess where, and that close is so much better, no? And, if you didn't know already, the World Bank and WTO regard national self-determination as one of those ancient ideas left over from the Versailles Treaty of 1919. Their motto is the closer to the theme song of Irma la Douce, "It's grand how the money passes hands!"
this because of the wise management the palestinians ministers running the goverment especialy the minister of transpors who worked hard to decrease the tax of cars and who works nights and days to provide beter serveces to the people and tocreat new culture among the palestinians based on transparency , productivity and people satisfation.
New cars ... car dealers, cafes, restaurants, all are a signal of a good life, but the picture is not that simple. It is some how the same as the early 90s bubble, where for the example the city of Ramallah encountered - what people used to think as an economic boom - that afterwords was diagnosed as a bubble, car dealers, rentals, taxis where all over the city, whom did not survive for long, and began quickly disappearing in 98 and 99. I think the same is happening now since 2007, but with a through a deep involvement of banks which was not the case in mid 90s. more than 80% of new cars and car dealers garages and taxi offices are on long bank loans, any regular PNA employee with a monthly salary of 4000 NIS can now drive a 2010 VW Polo - 23,500 USD - through a 6 years bank loan. The same story applies for apartment loans, a decent 130 m2 apartment in Ramallah is for 135,000 USD, any employee can own it through a 15 to 20 years bank loan. I think the situation is more dangerous than the 90s, since the loan culture is new to Palestinians ... But that will not last for long if a political solution remains unlikely to happen. Banks own most of the new cars and apartments in the West Bank ... it is an economic bubble that would explode any time and put more than half of the population in debt. What is happening is a new way of life to Palestinians not necessarily a good one.
There is not much wrong with the facts in th article as such, but it is is extremely selective. This is complete in line with government hasbara. A journalist should do a better job than just supporting his government.
This reminds me of the post-Oslo period when everyone was saying: end of conflict. Why would the Palestinians endanger their developing prosperity to fight Israel. Well guess what? They did. Apparently the urge to destroy Israel is sometimes stronger than many people would view as common sense. I remain skeptical until I hear that Palestinian children are being taught in school that peace is the only way and that Israel can exist next to a Palestinian state.
You expect Palestinians to say - go on, take more of my land and water. Get real.
there is a big diffference between marraige and adultery. likewise there is a big difference between good life and poverty. It seems that the reporte just passed by the Cars. if he goes to the homes, he will see the real economic growth. it is just the businessmen, PA, and other few people and the banks who are makning business. If you do not own the car, you are not leading a good life. If you bought a car last year with 170.000 shekel and today you are not able to find someone to buy it with 80.000, we are not leading a good life.
What is the origin of Suha's Billions?
Other than the millions she already has which Arafat stole ( she was under investigation in France for money laundering before he died ) the PA gives her around 1 hundred thousand dollars a month on the condition she lives in exile ( away from palestinian controled areas ) and never speak to anybody about Arafats death. Makes you wonder what did those French doctors tell her when Arafat was his deathbed. As his wife she was the only one they were allowed to tell but if he just died because he got sick then whats the big secret that you pay her off to live in exile and never speak about how he died.
Until the loan is paid in full, the car is considered bank property. this type of luxury is leading to economic crisis. people buy car but they canat bue bread in few day after recieving the salary. they have to pay back to banks. it is only banks and PA making business out of this,,,, propoganda
This has been one of my big problems with Obamas cash for clunkers scheme. People might get a government subsidy in terms of the money they get when they trade in their old cars but they don't go to the showroom with a load of cash they need to borrow more money to pay for the car and if they already have debts this is encouraging them to take out more debts so they can buy a new car and its going to be a couple of years before we discover how many people ended up having problems making their payments. If Obama wanted to encourage spending he should have been encouraging them to buy affordable things not products they need to take out loans to pay for its irresponsible. I very much doubt that there is a large percentage of ordinary palestinians buying these new cars especially considering unemployment is 30% - 40% and if the PA bans people working on settlements then thousands more will lose their jobs. So I very much doubt the majority of ordinary people are buying cars. Its also not responsible to be buying expensive things like cars right now considering the economy is not exactly healthy and considering the situation is so unstable right now it could easily take a nosedive overnight and then we will find there is not the money for these people are spending to pay off their car will be needed to pay for food & electric.
The prosperity is DESPITE the Israeli occupation. We both need closure our own independent states and self determination so we may ALL prosper Inshallah
Yes occupation is very Bad, Pal are living under brutal and savage regime. showing cars in picture doent mean good life???????. and see who is showing it???????
When you see a showroom in the US selling luxury cars it doesn't mean the economy has recovered it means there are rich people who can afford to go buy a new Mercedes or Jaguar. The palestinians are building a new city and the JNF has disgustingly even donated thousands of trees to this new city but ordinary people won't live there its an upmarket city for the people with money.
Since when economic progress is measured by how many new cars a nation has on the streets?To me this simply means that more poor people are becoming slaves for the banks.In order for a family to pay the mortgage at the end of the month both husband and wife have to work and by the middle of the month they will have nothing left from their salaries to spend on other important aspects of life.Can we imagine what will happen if the doner countries, whic are the main source of income for the Palestinian budget, stop transfering money to the Palestinian authority? Banks as well as employees will go bankrupt which will be a recipe for economic crisis and default .And similar to what happended in Greece the poor who will pay the price. Is that what you call progress and economic acheivement for Salam Fayyad?
That's why Palestinians are not on hurry to have a State of their own
"Can we imagine what will happen if the doner countries, whic are the main source of income for the Palestinian budget, stop transfering money to the Palestinian authority?" Who knows? Maye that's yet to come - give the 2% top-corrupt "elite" the taste of the real good life, some 10% the taste of the good life ... and if they don't behave like good slaves should - hey! we pull the plug. Problem solved. Remember? "Spirit the pennyless Arabs accross the border"? Would not surprise me at all.
"Can we imagine what will happen if the doner countries, whic are the main source of income for the Palestinian budget, stop transfering money to the Palestinian authority?" Who knows? Maye that's yet to come - give the 2% top-corrupt "elite" the taste of the real good life, some 10% the taste of the good life ... and if they don't behave like good slaves should - hey! we pull the plug. Problem solved. Remember? "Spirit the pennyless Arabs accross the border"? Would not surprise me at all.
Can we imagine what would happen if banks stop lending money? Or investors stop buying bonds and people stop investing in shares?
most pals are living off of money sent by families abroad my mom get a thousand a month and lives o.k with that i'm in the u.s.a
Before the security fence Palestinians just bought the ones stolen from Israel. Do you recall that the head of the Palestinian police was driving around in a car stolen from an Israeli general! I am glad the Palestinians are putting their welfare checks to good use!
Good news. Hopefully Gaza will follow without Hamas.
Israel has an economy not because it simply has more dirt on the ground, but it exports patent rights, technology, medical research and many other intellectual properties... It's nice to see the Palestinians feel no need to come to the negotiating table when Obama Hussein has recently increased their allowance for absolutely no reason...
annually for the past 40 or 50 years. plus private donations from American Jews and beyond. lets not throw stones, glass can be fragile.
...that allowed for local trading to resume....credited to Obama.
Thinking that 1% of the state budget that is fully allocated to defense does anything for the economy (as it does more to the American economy) and the only thing it impacts is our national security. Funny how some people who failed in math think that Israel's thriving economy, technology patents, medicine and position in the world's rich club is 100% or even 3% dependent on the US. Whatever helps the Arab and leftist ego from being totally crushed I guess.
And Israel wasn't the only party getting such aid. Egypt got over $2 billion annually following the Camp David accords.. Jordan and Lebanon got, and continue to get. And the Palestinians get plenty too. Don't kid yourself.
Why Hamas doesn't look to the West Bank and let the Gazans live properly and improve their standards of life?Recognizing the right of Israel to exist side by side with a Palestinian state will bring the wishful peace.And we don´t forget Gilad Shalit freedom.
and do u think Israeli want peace, then u are fool. Israel doent want peace, then they have to be on their own without europe and American backing, things that both Israeli and Palestinain doent want
their economy is due to the suffocating illegal blockade which tightly controls what enters Gaza and completely blocks all exports. If Israel continues to ease off the blockade due to the international pressure that the Flotillas have caused, Gaza's economy will improve. But blame the present condition on Israel, not on Hamas.
If your neighbour can live in peace you will live in peace.