Economy of Mandatory Palestine facts for kids
The economy of Mandatory Palestine was all about how people made money and how the land developed when it was under British rule, from 1920 to 1948.
Between 1922 and 1947, the Jewish part of the economy grew by 13.2% each year. This happened mostly because many people moved there and money came from other countries. The Arab part of the economy grew by 6.5% each year. When looking at how much each person earned, the Jewish population's income grew by 4.8% per year, and the Arab population's income grew by 3.6% per year. By 1936, the Jewish sector earned 2.6 times more than the Arab sector. However, Palestinian Arabs earned a bit more than people in other Arab countries at that time.
The biggest industrial area was in Haifa. Many homes were built there for workers. Haifa was also home to the Haifa oil refinery, which started in the 1930s. It was the end point of the Kirkuk-Haifa oil pipeline, which brought oil from Iraq.
The Jaffa Electric Company was started in 1923 by Pinhas Rutenberg. Later, it became part of the Palestine Electric Company. Other important companies started around this time include Palestine Airways in 1934, Angel Bakeries in 1927, and the Tnuva dairy in 1926. Electricity mostly went to Jewish industries, especially in Tel Aviv and Haifa. Even though Tel Aviv had more workshops, both cities needed about the same amount of electricity for industry by the early 1930s.
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How the Economy Grew
Between 1922 and 1947, the Jewish part of the economy grew by 13.2% each year. This was mainly because many people moved to the area and money came from other countries. The Arab part of the economy grew by 6.5% each year. When we look at how much each person earned, the Jewish population's income grew by 4.8% per year, and the Arab population's income grew by 3.6% per year. By 1936, the Jewish sector earned 2.6 times more than the Arab sector.
Around 1939, a study called the UN Human Development Index looked at 36 countries. Palestinian Jews were ranked 15th, Palestinian Arabs 30th, Egypt 33rd, and Turkey 35th. Most Jews in Palestine lived in cities (76.2% in 1942). Most Arabs lived in the countryside (68.3% in 1942). Experts say that Palestinian Arab society was as developed as other Arab societies in the region, and even more developed than some.
Energy Sources
Oil Production and Transport
The largest industrial area in the country was in Haifa. Many homes were built there for people who worked in these industries. Haifa was where the Haifa oil refinery was built in the 1930s. This refinery was the final stop for the Kirkuk-Haifa oil pipeline, which carried oil all the way from Iraq.
Electricity Supply
The Jaffa Electric Company was started in 1923 by Pinhas Rutenberg. Later, it became part of a new company called the Palestine Electric Company. Most of the electricity went to Jewish industries, especially in Tel Aviv and Haifa. Even though Tel Aviv had many more workshops and factories, both cities needed about the same amount of electricity for their industries by the early 1930s.
Transportation Systems
Air Travel
Palestine Airways was an airline also known as Palestine Air Transport. It was started by Pinhas Rutenberg, a Zionist, along with the Histadrut (a labor organization) and the Jewish Agency. In 1937, the British Government's Air Ministry took over the airline. The plan was to give it back to private owners later.
The airline operated from July 1937 until August 1940. It was managed by a British company called Imperial Airways.
Sea Shipping
Before the 1900s, Acre was the main port for the region. However, the port eventually filled up with mud and could not handle large ships anymore. Theodor Herzl, who is known as the father of Political Zionism, was the first person to see how important a port in Haifa could be. In 1902, he wrote about it in his book AltNeuland.
Building the port in Haifa began in 1922. It was officially opened on October 31, 1933, by Lieut. Gen. Sir Arthur Wauchope, who was the British High Commissioner for Palestine. The port helped Haifa grow a lot, and by 1936, the city had over 100,000 people. The port was also a key entry point for thousands of immigrants after the Second World War. In 1940, the port was the site of the Patria disaster, where 267 people lost their lives.
See also
- Economy of Israel
- Economy of Jordan
