Jerusalem Center for Social & Economic Rights

Jerusalem Center for Social & Economic Rights

THE DENIAL OF RIGHTS OF EAST JERUSALEM RESIDENTS      

A study about the economic rights of Palestinians in East Jerusalem

July 1999

Contents


Introduction

The Jerusalem Center of Economical and Social Rights has compiled a comprehensive survey about issues that discriminate against Palestinian residents in Jerusalem. The survey consists of a comparative research about Palestinian and Jewish residents of the city in terms of the services they receive and the taxes they pay.

This survey indicates the following points:

  1. This continuous policy of discrimination, which has been going on since 1967, is a systematic policy of the Israeli government.

  2. The main aim of this policy is to force the Palestinian population into leaving the city, thus emptying it of its Palestinian residents. The policy includes the confiscation of Jerusalem ID cards, isolating East Jerusalem from its surrounding areas, restricting Palestinian house construction, etc. The overall aim is to justify the annexation of East Jerusalem, which is illegal according to international law.

The main focus of this survey is to provide a tool of action for Palestinian Jerusalemites by making them realize the extent of the discrimination they face as a result of this policy. It is also an expression of the Center’s desire to serve the Palestinian people, not only by adopting specific issues within the limit existing resources, but also by enlightening citizens and showing them the magnitude of their deprived rights.

This booklet presents facts and figures about the socio – economic situation of the Palestinian citizens of East Jerusalem and presents the developments that have taken place.


Characterizing the population of Jerusalem

Jerusalem is the largest city in Israel in terms of population and area. Today it spans 123,000 square miles. According to official figures the population of Jerusalem was 622,100 people in 1997; 429,100 Jews (69 percent) and 193,000 Palestinians (31 percent).

Over the past decade (1988-1997), the population of Jerusalem rose by 26 percent. The Jewish populations increased by 21 percent and the Palestinian population by 38 percent. From 1990 until 1997, the city’s population grew with 98,600 people. That is 19 percent in seven years. One of the reasons for this rapid expansion is the large number of new immigrants arriving in the city. In the last three years the population growth has declined to 2-3%.

Table: The population of Jerusalem (1990-1997)



 Natural increase
The people of Jerusalem have a high rate of natural increase. In 1996 there were 24.3 thousand births: 20.8 thousand in the Jewish sector and 36.6 thousand in the Palestinian sector.

Division by age
Jerusalem is characterized by its young population. According to 1997 statistics, 44 percent of Jerusalem’s population is aged between the ages 0-19, with 13 percent aged between 0-4. People aged 65 and over make up 8 percent of the population. The Palestinian population is younger: just over 50 percent of Palestinians in Jerusalem are aged between 0-19, 16.6 percent between 0-4, and 3.7 percent are older than 65. The number of young people falling between the ages 5-19 indicates a large concentration of this age group in peripheral neighborhoods, where they make up 30 percent of the population.

Table: The population of Jerusalem according to age groups, 1997
 



 


Family size
In the city there are large numbers of extended families. According to 1996 municipal statistics, there was an overall average of 3.9 persons per Jerusalem family. In the Jewish sector the figure was 3.5 people per family; in the Palestinian sector the average family size was 5.6. Of all the households in Jerusalem, 24 percent has six or more members and 37 percent has one or two members. In a 1998 survey of ultra orthodox (Haredim) Jews, it was found that the average family size in that sector was 5.93 members.

The Educational System
The large number of young people in Jerusalem has affected the educational system, which has to meet the needs of different communities. In all the education institutes in Jerusalem, there are about 163,000 pupils, among which 67,000 are Haridi Jews and 26,000 Palestinian pupils from East Jerusalem. (About 24,272 in 1997.)

Population: General Characteristics
Jerusalem is mainly a ‘lower class’ city. Employment in the city is restricted mainly to public and community services, where the income is usually low. The figures show that most residents of Jerusalem receive a low income.

This coincides with the fact that poverty and population density are high in the city. The social and demographic aspects, including unemployment, make Jerusalem the poorest city in the region.


Poverty and income

General
According to statistics provided by the National Welfare Institute (Income averages according to towns and different economical variables), in 1995-1996 there were 168,247 employees in Jerusalem. In 1996, the average monthly wage before tax was about NIS 5.196, which is relatively low compared to Tel Aviv (NIS 5,701) and Haifa (NIS 6,020). The average national wage stood at NIS 5,181 per month.

In 1997, there were about 63,000 families with at least one employed member in Jerusalem. In 1996, the average monthly income per family was NIS 8,262. This sum is lower than in Tel Aviv (NIS 10,584) and Haifa (NIS 11,574).

The average monthly wage per person in Jerusalem is only 0.2 percent lower than the national average, while the average family income is 6 percent lower than national average. More than 5,800 families in Jerusalem requested welfare assistance in 1997. Of these families, 18 percent recieved assistance because of their low income and 35 percent were defined as “unfit for any job”. Of Jerusalem’s pensioners, 26 percent needed welfare assistance. In Haifa this was 25 percent and 21 percent in Tel Aviv.

Poverty Line
Poverty in Jerusalem is relatively high compared to Tel Aviv and Haifa. In 1997, 16 percent of all families in Jerusalem lived below the poverty line, as did 24 percent of children. However, since 1997 there has been a significant decline in poverty in Jerusalem.

There are several different reasons for poverty in Jerusalem such as the fact that the population of Jerusalem contains many low-income extended families with large numbers of children.

Table: Poverty in Jerusalem, 1996-1997

 




 


 Source: the National Welfare Institute (1997) Trends of change in the Magnitude of poverty and the inequity in the Dividing of income. (* No Data available)

According to these statistics, there was a significant decline in poverty in Jerusalem in 1997 in comparison with the national total and in comparison to past Jerusalem statistics. The institute gives the following possible reasons for of this decline:

Despite the poverty decline the Jerusalem municipality’s Welfare Department reported an increase in the number of families seeking assistance. In the year 1997, 26 percent of Jerusalem families received benefits from the department.

Table: Comparison of income division for East Jerusalem compared to Jerusalem in general
 


 


 Municipal Services

Education
The educational system in Jerusalem is managed by the Administration for Education in Jerusalem. This organization is responsible for education in Jerusalem (except for the Haredi sector). The organization’s responsibilities include overseeing the achievements of pupils in Jerusalem, to building educational institutes and improving the educational and social climate in the Jerusalem schools. The education system must meet the needs of a changing population size, the demographic characteristics of the city and its neighborhoods.

In several aspects a clear difference can be make between the Jewish education system and the Palestinian education system. Examples are special education, kindergardens, and computerization. East Jerusalem schools need a special budget in order to introduce computers into schools. The following table relates to the computerizing of Palestinian schools.

Table 5: Computerization of schools

Conclusions with regard to budget allocations to the Palestinian Educational System of Jerusalem

  1. There is am enormous discrimination in the budgets for Palestinian and Jewish schools in all educational aspects.

  2. The problem of class density, especially elementary schools in East Jerusalem, is far more serious in the Palestinian sector. In the special budget, there is a plan to build about 30 classrooms in East Jerusalem (cf: Building Educational Facilities), although the Ministry of Education has allotted a special budget for East Jerusalem in order to built about 60 classrooms there annually .

  3. The number of teaching hours per Jewish pupil or class is for greater than that per Arab pupil or class. The difference is sometimes as high as 38 percent.

  4. In elementary education, the gap between Palestinians and Jews in terms of official teacher-pupil hours is 100 percent.

  5. The number of grants given to teachers for studying is 382 percent higher in the Jewish sector. This has an effect on the work of teachers and consequently on the achievements of pupils in the ‘Bagrut’ examinations.

  6. The percent age of Jews studying in special educational institutes is 55 percent more than that of Palestinians, even though the Palestinian sector has a greater need for these institutes.

  7. The percentage of Palestinian pupils dropping out of school was 5.2 percent in 1998; the number is 17.3 percent higher than in the Jewish sector.

These figures show that the Jerusalem Municipality discriminates against the Palestinian residents of the city. For equal opportunities for Palestinian and Jewish pupils, the Municipality must increase the budget allocation to the Palestinian sectors and take steps towards changing the current unequal situation.

Table: The difference in budgets between Palestinian and Jewish education in Jerusalem

 





 

Source: The Ministry of education
* No data


Industry in Jerusalem

According to figures provided by the Israeli Industrialists Union, there has been a great increase in industry in Jerusalem in recent years.

Table: Industry in Jerusalem 1995-1996



  • The percentage of factories with more that 5 employees rose from 6.3 percent in 1995 to 8 percent in 1996.

  • The percentage of industry workers in relation to other fields rose from 5 percent in 1995 to 5.5 percent in 1996.

The structure of industry in Jerusalem

  • The majority of factories are printing presses, publishers, textiles and clothing factories and producers of shoes and iron.

  • The majority of factory employees work in printing and publishing, food, drinks, tobacco and chemical plants.

  • The highest proportion of income is generated in chemical and pharmaceutical (27 percent), and electronic factories (18 percent).

  • Most export is in electronics (44 percent of industry in Jerusalem) and chemistry (38 percent of industry in Jerusalem).


Summarizing industry in Jerusalem
Even though there is only one Jerusalem municipality and the city is considered united, it is in fact divided in many ways. Industry in the city is an example of this. While high-tech industry is booming in West Jerusalem and Intel flourishing, unemployment and stagnation dominate industry in East Jerusalem. However, there have been no plans or strategies to decrease unemployment or develop industrialization in East Jerusalem.

The division of industry in East Jerusalem demonstrates the lack of high-tech, textile, clothing or chemistry industries in East Jerusalem, as well as those involved in producing machinery, jewelry, food, etc. It is worth noting that 94 percent of the unskilled labor force in Jerusalem is Palestinian. (Source: Jerusalem Statistical Book)

Table: Diversion of industry in Jerusalem according to main fields


 

Investment in Hi-tech and conventional industry
Hi-tech industry is on the increase in Jerusalem and in the past few years many new factories have been opened. Their number increased more than 700 percent from 1990 until 1997. There were only 30 factories in 1990. In 1993 there were 105; and 200 in 1997. Of these, 69 produce software, 49 produce medicines and 76 produce electronics. The investment potential of hi-tech industry in Jerusalem, (1991-1996) was:

1991: 23 plans, investment of US$ 88 million.
1992: 54 plans, investment of US$ 250 million.
1993: 44 plans, investment of US$ 60 million.
1994: 33 plans, investment of US$ 54 million.
1995: 43 plans, investment of US$ 96 million.
1996: 39 plans, investment of US$ 63.5 million.

The main fields are software, electronics and electricity, which are expected to provide about 1,500 jobs. The investment in these fields in recent years was as follows:

1992: US$ 101.5 million.
1993: US$ 123.7 million.
1994: US$ 76.7 million.
1995: US$ 55.5 million.
1996: US$ 75.2 million.

 

Table: Workers in Jerusalem according to job and population 1995/1996
 



 

Source: Jerusalem statistical book


Tourism in Jerusalem

Jerusalem is a main tourist attraction in the region. According to an article in ‘Travel and Pleasure’ Magazine, edition 25 August 1998, Jerusalem is important for Jewish, Christian and Moslem Pilgrims alike.

The magnitude of tourism in Jerusalem
According to the Ministry of Tourism, 1.8 million tourists visited the country in 1997. In 1996, the number was 2.1 million and in 1995, 2.3 million. The number of tourists coming to Jerusalem rose dramatically in the early 1990s, but since 1995 there has been a continuous decline. Between 1995 and 1997, the number of tourists coming to Israel and the Palestinian Territories declined by 17.4 percent, while those coming to Jerusalem declined by 23.4 percent.

There are about 64 hotels in the city, 33 in West and 31 in East Jerusalem. These hotels offer about 7,853 rooms. In 1997, 911,000 people stayed in these hotels, including 621,000 tourists.

About 59 percent of the international congresses that take place in Israel and the Palestinian Territories are held in Jerusalem. In 1996 about 42,590 people took part in such conferences. 73 percent of these people took part in conferences organized in Jerusalem. One of the reasons for Jerusalem’s dominance in this field is the Congress Center, which is located in the city. According to ICCA (the biggest organization in the field of international congresses) Jerusalem was the 4th popular city in the world for organizing congresses.

Trends for the future
It is predicated that the number of tourists visiting Israel and the Palestinian Territories will rise, especially in the year 2000.

A committee, consisting of members of the Ministry of Tourism, the Jerusalem Municipality and the Authority for Developing Jerusalem, has set the goal of building 10,000 more hotel rooms in the city, including:

The committee also favors setting up large tourist projects in the city center. Among the projects being built or the phase of obtaining permits are:

  • The old city basin: Mount of Olives ridge, Haneviem Street;

  • The old city: the Wailing Wall, Via Dola Rosa, the Church of the Holy Sepulcher and Bet Bad Street.

  • The City Center: Ben Yehuda and Zion square, King George Street.

  • Other projects: tourist terminal at Bethlehem post, more toilets, signs, transportation, parking facilities, lighting, etc.

The correct exploitation of tourist attractions in Jerusalem will probably increase the number of tourists visiting the city.


Welfare services in the Palestinian sector

Welfare Office
The Welfare Office in East Jerusalem is the central body responsible for dealing with the social problems of East Jerusalem residents. Issues include, for example, residents who have economic problems, that are unemployment, bad housing conditions, mental and physical disabilities, and children in jeopardy.

In 1996, 23 percent of the households in East Jerusalem asked for assistance or advice form the Welfare Office. In 1997, this was 26 percent. This increase can be explained by the deteriorating economic situation, the weakening of other aid organization and the increasing need for professional help.

Sports in the Palestinian sector
The East Jerusalem Sports Department is responsible for improving the abilities of sport teachers and coaches in East Jerusalem.

The department is working on developing an infrastructure for sport activities. This includes building 12 facilities in East Jerusalem (Um Tuba, Sor Baher, Eissawia, Beit Safafa). The department is also developing courses in cooperation with the Wingate Institute.


Unusual budget

In 1998, the total investment in East Jerusalem’s infrastructure was about 750,000 NIS. This amount is almost comparable with the amount that was spent the lighting system in West Jerusalem (650,000 NIS).

  1. Five youth clubs were built in West Jerusalem in 1998 (Gila, Keryat Menashe, Beit Vagen, Gevaat Murdachai, Nicknor Street). The national lottery donated 1,862,944 NIS and the municipality 1,762,902 NIS. The lottery did not donate any money to projects in East Jerusalem. ( Source: unusual budget proposal, 1998, p.136)

  2. 10 million NIS will be invested in improving Jerusalem’s road network. The area to be improved covers about 310,250 square meters. None of these roads are situated in the Palestinian neighborhoods of the city. (Source: unusual budget proposal, 1998, p.146).

  3. The municipality plans to invest about 2 million NIS to improve sidewalks in West Jerusalem. At this stage, approval is given for an amount of 950,000 NIS. (Source: unusual budget proposal, 1998, p.147).

  4. The municipality invests in developing public parks in West Jerusalem at the cost of 5.5 million NIS of which 3.15 million NIS has already been approved. (Source: unusual budget proposal, 1998, p.148)

  5. The municipality of Jerusalem is investing in additional housing in West Jerusalem, for example in Brower, Rozenblat Ramot Street, Sorotskin, Revka Cahnz, and Gevat Shmuel. There are no such investments planned for East Jerusalem although the population density is four times higher.

  6. There are plans to build 30 additional classrooms in East Jerusalem although the Ministry of Education allotted 60 new classrooms for East Jerusalem per year (Source: the Educational System in Numbers, table B.5)


 Water and Sewage in East Jerusalem

Developing the system according to neighborhoods
In the urban neighborhoods like Wadi Joz, Bad El-Zahra, and in the Old City, the water provision equals that of the rest of the city.

In the northern neighborhoods of Jerusalem, such as Beit Hanina and Shu’fat, the system is controlled by Ramallah – Al Bira water plant. The system is sub-standard, but the issue is highly political and expanding services to these neighborhoods depends on government and municipal decisions.

In rural Palestinian neighborhoods like Jabal Almukaber and Sur Baher, there is a lack of city planning and road development. In these areas, there is a system of narrow water pipes that provide water according to the pressure set for the entire city.

According to the plan for new roads in the south, there will be an expansion of the water system in Eissawia, Alsawia, Silwan and Beit Safafa.

In 1998, there was no budget for building water reservoirs in East Jerusalem. However, there are specific plans for erecting ten water facilities in rural Palestinian areas. Costs 30 million NIS.

Table: Estimation of water system development in East Jerusalem



In 1998, the department was supposed to replace about 12,500 meters of damaged water pipes. It was also expected to expand about 8,282 meters at the cost of 8 million NIS and to expand the drainage system by 3,122 meters at the cost of 6,590 million NIS.

The completion of sewage pipes in East Jerusalem is conditioned on residents’ consent to help finance the project. As soon as the budget is received the projects will commence.


Arnona (Municipal Tax)

General
The economic and demographic/ socio-economic structure has influence on the city’s income level as it is largely made up of Arnona tax. In 1997, it provided 45 percent of the municipality’s income.

Municipal criteria for charging Arnona
Some municipalities have different fees for the same kind of property. The fees are as:

Table: Criteria for Arnona eligibility in the three largest cities in Israel

Source: The Center of Local Government in Israel, Arnona fee survey,1997

Jerusalem is the only city in which the Arnona fee is unified for offices, services and commerce. The residential Arnona rate in Jerusalem does not take the size of the house into consideration.

Even though businesses suffer from recession in East Jerusalem, the Arnona collected there has risen in comparison to businesses in West Jerusalem.

The Arnona fees of the Jerusalem municipality 1998
The Jerusalem municipality imposed general Arnona in the financial year 1998 at the following rates:

1. Housing buildings
At the following rates for each unit (as defined in the Arnona G/3 1998 forecast) and according to area and property type (as detailed in supplement G/1).

Table: Sub-definition building type (rate per meter)
 


 


Source: the Local Authority Center in Israel, the economic unit, the 1998 local authority Arnona forecast

2. Offices, services and commerce
Including electrical appliances, bus stops, restaurant, gas stations, shops, large department stores, kiosks and drug stores. Excluding banks.

The Arnona is defined at unified rated, namely:.

Area – sub definition:

The entire city

Charge in 1998:

214.94 NIS per meter

3. Government offices
The Arnona will be defined according to unified rates, namely:

Area – sub definition:

The entire city

Charge in 1998:

214.95 NIS per meter

4. Cinema and theaters
The Arnona will be defined according to unified rates, namely:

Area – sub definition:

The entire city

Charge in 1998:

110 NIS per meter

5. Hotels, guest houses and motels
If the seize is more than 2,000 square meter, it will be charged at the following rate:


Source: the Local Authority Center in Israel, the economic unit, the 1998 local authority Arnona forecast.

If the size is less than 2,000 square meter, it will be charged as follows:
Source: the Local Authority Center in Israel, the economic unit, the 1998 local authority Arnona forecast.

6. Homes for the elderly
The Arnona will be calculated according to the following rates:
Source: the Local Authority Center in Israel, the economic unit, the 1998 local authority Arnona forecast.

7. Owned Land


Source: the Local Authority Center in Israel, the economic unit, the 1998 local authority Arnona forecast.

8. Agricultural Land
For every 20 meter, a general Arnona fee is charged according to the following:

Area – sub definition:

The entire city

Charge in 1998:

8.80 NIS per meter

9. Religious institutes
Synagogues, mosques and churches:

Area – sub definition:

The entire city

Charge in 1998:

38.65 NIS per meter

Important findings
Unified rate: This is the rate used by the municipality of Jerusalem for charging Arnona for different types of property. However, according to the 1998 Arnona forecast, this rate relates also to banks and insurance companies, which enjoy higher income and better security compared to small businesses.

Is there really fair to treat large and small businesses alike concerning Arnona as their financial capacity differs considerably?

Income from Arnona: The Arnona income is important for the municipality. The Arnona income collected in East Jerusalem has constantly increased from 1994 to 1998. In fact, the income as doubled from 32.35 million NIS to 65.05 million NIS during these years.

A Unified rate was also applied for the following institutions: Government offices, schools and kindergartens, hospitals, consulates, embassies and UN institutions.

An alternative model for the Arnona tax
The municipality of Jerusalem charges Arnona on offices, services and commercial places is a regressive way. At the same time, the income of private businesses is not unified in division. About 50 percent of private businesses in Jerusalem have a graduated income, which reaches half the income in Jerusalem, and 12.1 percent of those have an income double that of average Jerusalem. Other Israeli cities do use a progressive Arnona system.

Table: Municipalities and their minimum Arnona


Source: Israel Center of Local Government, Arnona fee survey 1997

There are two major confusions that can be drawn for this table:

According to JCSER the principle to collect Arnona should be based on income. Those who have high income levels pay more than those who have low income levels.

Assumptions: According to data of the National Insurance Institute (not yet published), private businesses in Jerusalem can be divided into four sub-categories. These are defined by income. The largest sub-group (50.2 percent) includes those who earn about half the national wage average, including 24.4 percent large families.


Building in Jerusalem

A potential increase of apartments in Jerusalem
In Jerusalem there are currently many apartments in the planning or building phase. According to the information given by the Department of Planning Policy (July 1997), the exiting apartments in Jerusalem are 162,498 out which 131,629 are in the Jewish sector and 30,869 in the Palestinian sector.

The potential increase of apartment in Jerusalem today is 65,143 in the Jewish sector, out of which 17,576 are already authorized, and 20,902 in the Palestinian sector.

The main areas planned for increases in Palestinian housing are:

The planning in the Jewish sector is in the following areas:

  • Har Homa: 6,500 apartments.

  • Ramat Beet Hakerem: 2,000 apartments.

  • Ramat Rahel: 1,500 apartments.

  • About 7,000 apartments on private land.

  • About 18,000 apartments are in the process of obtaining permits.

  • About 10,000 apartments are in different stages of building in Gonnenim an Air Ganim.

  • About 8,000 in several small lots.

The residents of East Jerusalem suffer from population density because of the municipality’s planning and zoning policy, which restricts building to already build up areas. The population density increases poverty and classroom density in schools. It also contributes to the general lack of opportunities available to residents of these areas.

Table: Population density in Jerusalem quarter


 

* Indicate Palestinian neighborhoods

Two conclusions can be drawn from this table:

  • The population density in the Old City is very high, reaching three or four times the density of any other area.

  • Population density is on the increase in East Jerusalem, while it is on the decrease in other parts of the city.

Table: Population density according to quarters and sub-quarters 1992-1996 (1, 2, and 3 from the table above indicate the Palestinian neighborhoods in Jerusalem)
 

 



Source: Jerusalem statistical book, 1997, table 14/g.

Construction permits: Comparative data

Table: Comparative date on construction permits between East and West Jerusalem, 1997-98


 


Source: The general executive, head of Permits Department.

Even though Palestinians make up 31 percent of the population of Jerusalem, only 15 to 17 percent can apply and get permits issued. The problem of permits is of central concern to the Palestinian population, because houses built without permit can be demolished. There are two main contributing factors to this problem:

  1. The Palestinians can exploit only 15 percent of their land because of planning and zoning restrictions. The result is severe overcrowding and housing shortage in the Palestinian neighborhoods, which leads to an increase in social problems.

  2. Fees for obtaining permits are very high for low income families in East Jerusalem. In an empirical survey of East Jerusalem, it was found that business owners only earn an average of about 2500 NIS per month. A lot of money is involved to be able to obtain a building permit. This explains to low percentage of Palestinian applications.

  3. There is a problem of proving ownership in East Jerusalem, which makes the procedure to obtain permits much more difficult.

The department in charge of issuing permits has total control over this process. This often causes delay in the provision of permits especially as the applicant is faced with the problems mentioned above at point three.

Possible solutions:

  1. Large reductions in fees paid for obtaining permits, especially essential in low-income areas such as East Jerusalem.

  2. Rezoning “Green Areas” on which building has been prohibited.

  3. Creating a special body for dealing with permits for East Jerusalem. It is recommended that people from East Jerusalem will participate in this body as they have a good knowledge about the area and the population that lives there.


 The implication of the demographical, social, and economical characteristics of Jerusalem on the urban system
 

 



 

The empirical survey

JCSER has conducted a survey on the incomes of private businesses in East Jerusalem in comparison with the whole city of Jerusalem. Thy data was collected from accountants’ books for the year 1996. The survey included 69 businesses randomly picked out of 2,400 existing in Jerusalem.


Note: the comparison was not made with West Jerusalem but with Jerusalem as a whole.

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