Transcript Towards Economic Development in East Jerusalem Now

Towards Economic
Development in East
Jerusalem Now
A Strategic Approach by the
Jerusalem Policy Forum
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© Jerusalem Policy Forum 2007
Context –
Where we are going?
Increasing
Poverty
Middle Class
Flight
Income Inequality
Isolation from
natural market
Marginalized by Palestinians
And Israelis
Model
Elements
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Deterioration of institutions;
Increasingly asymmetric capacities
Limited Tax Base; structural budget deficit
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…Where we want to go…
 Improved and sustained economic activity that
is beneficial to both Palestinians and Israelis
 Stable Employment – Jobs and Income
 Economic Growth and Opportunity
 Change the priorities for governance…
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FROM Politics
and Security
TO Economics
and Investment
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Taking the Right
Approach…
 Economic Activity
Model
Elements
 Sustainability
 Strengthen economic
interdependence
 Build on competitive
competencies
 “Rebrand” Jerusalem
as an internationallyrecognized economic
area
 Institute a fair and
equitable tax structure
and services
 Preserve and protect
of private property
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Map
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…Will Require the Capacity
to Act
Strategically…
Capacity to Plan and Act on a Sustained Basis
Policies
Model
Elements
Programs
Projects
Employers
Opportunity
Sustained
Efforts
Capacity
Quality of Life
Fairness
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Map
Jobs
Incomes
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Key Recommendation:
Build Capacity, Set Direction, and Ensure Accountability…
Symptoms
 Many organizations
 Mix of agendas, geography, &
leadership
 Competing for scarce resources
Causes
 No professional economic development
staff
 No focused economic development
strategy
 Limited public consensus about
development
Initiatives
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Organization
& Strategy
 Jerusalem Economic Forum
 Economic development strategy
 Secure International 3rd Party to
Monitor Implementation
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Detail: Jerusalem Economic Forum
Mission
Tasks and Activities



Evaluate the market situation &
identify short and long term market
opportunities

Develop consensus on economic
development policies and programs;

Identify priority projects in the
economic development strategy

Manage the preparation and
implementation of the economic
development strategy

Work with public and private
developers in formulating, planning,
and implementing economic
development projects

Track economic development
projects and monitor economic
development progress.

guide strategy development
Manage project development and
implementation
monitor strategy implementation
Composition


Reps from leading sectors (e.g.
tourism, health, education, retail, etc.)
Palestinian/East Jerusalemites
Management & Organization
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

Professional staff
Leverage partnerships with “existing”
organizations (e.g. Chamber of
Commerce, JPF, etc.)
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Steve
Detail: 3rd Party Monitoring
Mission
Tasks and Activities
 To ensure
implementation of the
economic strategy,
including policies,
programs, and projects

Establish benchmarks for
performance

Collect data about outcomes

Report on monitoring efforts
Composition
Model
Elements
 Reps from international
bodies with a supporting
in the economic strategy
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Map
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Steve
Examples of Policy Initiatives
Symptoms


Uncompetitive tax situation
Limited public services available to business
and communities
Causes


High tax burden on real estate
Unfair tax burden on certain industries
compared to competitive locations
Initiatives

Model
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Taxes

Evaluate the equity and application of
business, property, and personal income
taxes
Recommend policies for tax equalization to
ensure competitive industry
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Examples of Policy Initiatives
Symptoms


Limited building development activity
Limited investment activity
Causes


Building permit unapproved for development in
East Jerusalem
Incentives unavailable and/or unsuited for E.
Jerusalem
Initiatives

Model
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“Favorable”
Enforcement
Enforce development laws
 Permitting
 Incentives
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Examples of Program Initiatives
Symptoms


International business not locating in Jerusalem
Declining key sectors, such as Tourism
Causes


Uncompetitive trade policies with international
markets
Stigmatized location by international
organizations
Initiatives
Model
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Business
Development

Target recruitment

Capital Improvement Program to Enhance
“Jerusalem Brand”

Regional co-marketing initiative for Tourism
industry
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Examples of Project Initiatives
Symptoms

Declining key sectors, such as Tourism
Causes



Model
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Map
Lack of capital investment in Hotel room supply
Reduced tourist activity
Available incentive programs not geared to East
Jerusalem Hotels and
owners
Initiatives
Key Industry
Development
 Rehabilitate hotel room to enhance
regional marketing and tourism
activity
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Example:
Rehabilitate Hotel Rooms
Proposal
Outcomes


1000 rooms

increased tourist penetration into E.
Jerusalem

increased overall capacity in
Jerusalem
Capital investment in underutilized
hotel room supply in E. J.
Rationale

Shorten time to market

reduce capital cost
Partners

Hotel owners and operators in E
Jerusalem
Model
Cost
Elements

$30M

long term secured financing
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Map
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What We Need…Now
 Consensus and international support for the
approach
 Support the costs of establishing and operating
the Jerusalem Economic Development Forum for
3 years
Model
Elements
Request
Map
 Support the costs of identifying, recruiting, and
hiring a professional economic development staff
 Intent to support and leverage others to support
priority economic development programs and
projects.
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End
Model
Elements
Request
Map
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Examples of Project Initiatives
Symptoms
 No air access to East Jerusalem region
 Air Access needed for Tourism sector and
international business
 No free access; allCauses
access controlled by
Israel
 Difficulty securing air corridor around
Jerusalem
 May compete with B-G for international
travel
Initiatives
Model
Elements
Request
Access
 Evaluate the financial and security
issues for opening the Qalandia Airport;
prepare and implement a plan for the
airport
Map
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Steve
Examples of Project Initiatives
Symptoms



Deteriorating business districts
Limited services available to local residents
Low quality public spaces
Causes



Model
Elements
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Map
Limited funding for public spaces
No coordinated plans for neighborhoods
Underperforming businesses in neighborhood
business districts Initiatives
Business
Districts

Identify plans for the redevelopment of
neighborhood business district throughout
East Jerusalem, including public
improvements, business development, and
financing options
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Examples of Project Initiatives
Symptoms


Little or no investment by International business
community
Few relocations and/or expansions
Causes


Jerusalem is stigmatized as “disputed” territory;
unclear what jurisdiction and benefits may apply
Few high quality sites and buildings “ready to
go”
Initiatives
Model
Elements
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Map
International
District
 Model for an International District in
Jerusalem
 “Ready” sites and buildings to house
business interested in East Jerusalem
locations
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Detail: International District
Proposal
Outcomes


Benchmarks for district performance

Model of legal, financial,
infrastructure, development, and
governance issues

Alternative implementation strategies
Create globally-competitive
international business zones in the
Jerusalem region
Rationale

International business require
“conflict free” development areas

Create stable areas where Israelis,
Palestinians, and International
business can work together
Model
Partners
Elements

Jerusalem Development Authority
Request

Palestine Investment Fund
Map
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Steve
dnegeL
Jerusalem Governorate - J1 & J2
Model
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East Jerusalem - J1
Ethnicity
Arab
Jewish
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West Jerusalem - J0
¸
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