Should Informal Economy Activities be Considered in a Palestinian Economic Development Strategy?
Recognizing the increased significance of the WBGS informal economy, this paper represents the first initiative that is aimed at addressing this sector from the perspective of public policy and economic development strategy. For this purpose, the paper depends on data derived from a survey that was conducted by Palestine Economic Policy Research Institute (MAS), and Palestine Central Bureau of Statistics (PCBS). The data analysis focuses on two levels that are informal enterprises and households’ involvement in the information economy. At the enterprises level, in 2003 informal enterprises represented 41% of the total enterprises in the WBGS. This proportion of economic activities operates outside of formal rules and regulations and, therefore, is not subject to public policies. At the household level, the analysis shows that 35% of the labour force in the WBGS was involved in informal economic activities, and 64% of the labour force in the informal economy ranged between 20 to 50 year
