Discuss the economic consequences of an international conflict. (7)

The Israeli Palestine conflict has had multiple economic consequences. The most significant economic consequence of the conflict is the amount of unemployment in Palestine. Unemployment in the Gaza Strip is at 43.9% and 17.1% in the West Back compared to just 5.6% in Israel. This is a direct result of policies implemented by the Israelis that hinder the movement of Palestinians between the two countries, making it difficult for Palestinians to seek employment in Israel. This is the most significant economic consequences because the lack of employment is a factor that exacerbates other economic consequences and contributes to the high levels of poverty in Palestine but is also significant because it highlights the dominance of Israel over Palestine which is also a result of the conflict. The poverty caused by the conflict and exacerbated by unemployment, roughly 80% of people who live in the Gaza Strip live in poverty. This acts as a negative multiplier which makes it harder for Palestinians to rebuild infrastructure and start businesses that have been destroyed by the conflict because they cannot afford to do so. Israel has also been subject to the economic consequences of the conflict albeit in a more positive way. Israel has send 12 Billion USD on war with Palestine in the 20 years leading up to 2010 however the majority of this has been subsidised by the USA and so therefore is not a significant or overly negative consequence of the conflict. On the other hand due to the Oslo Accords, which took place in an attempt to resolve the conflict, 60% of the West Bank is legally under complete Israeli control meaning they can benefit from any economic activity that takes place there. Furthermore, Israeli now controls 80% of the water flow from the mountain aquifers which mean that they no longer have to buy as much. These two last points are significant because over the long run they will help boost the Israeli economy which in turn, as the conflict continues, will further push the balance in favour of Israel.