Economy of Mandatory Palestine refers to the economy and financial development of the British Mandatory Palestine between 1920 and 1948.
Between 1922 and 1947, the annual growth rate of the Jewish sector of the economy was 13.2%, mainly due to immigration and foreign capital, while that of the Arab was 6.5%. Per capita, these figures were 4.8% and 3.6% respectively. By 1936, the Jewish sector earned 2.6 times as much as Arabs. [1] Compared to Arab countries, the Palestinian Arab individuals earned slightly more. [2]
The country's largest industrial zone was in Haifa, where many housing projects were built for employees. [3] Haifa was the location of the Haifa oil refinery, established in the 1930s, and the end point of the Kirkuk-Haifa oil pipeline, transporting oil from the Kingdom of Iraq.
The Jaffa Electric Company was founded in 1923 by Pinhas Rutenberg, and was later absorbed into a newly created Palestine Electric Company. Palestine Airways was founded in 1934, Angel Bakeries in 1927, and the Tnuva dairy in 1926. Electric current mainly flowed to Jewish industry, following it to its nestled locations in Tel Aviv and Haifa. Although Tel Aviv had by far more workshops and factories, the demand for electric power for industry was roughly the same for both cities by the early 1930s. [4]
Between 1922 and 1947, the annual growth rate of the Jewish sector of the economy was 13.2%, mainly due to immigration and foreign capital, while that of the Arab was 6.5%. Per capita, these figures were 4.8% and 3.6% respectively. By 1936, the Jewish sector earned 2.6 times as much as Arabs. [5] Compared to Arab countries, the Palestinian Arab individuals earned slightly more. [6]
On the scale of the UN Human Development Index determined for around 1939, of 36 countries, Palestinian Jews were placed 15th, Palestinian Arabs 30th, Egypt 33rd and Turkey 35th. [7] The Jews in Palestine were mainly urban, 76.2% in 1942, while the Arabs were mainly rural, 68.3% in 1942. [8] Overall, Khalidi concludes that Palestinian Arab society, while overmatched by the Yishuv, was as advanced as any other Arab society in the region and considerably more than several. [9]
The country's largest industrial zone was in Haifa, where many housing projects were built for employees. [10] Haifa was the location of the Haifa oil refinery, established in the 1930s, and the end point of the Kirkuk-Haifa oil pipeline, transporting oil from the Kingdom of Iraq.
The Jaffa Electric Company was founded in 1923 by Pinhas Rutenberg, and was later absorbed into a newly created Palestine Electric Company. Electric current mainly flowed to Jewish industry, following it to its nestled locations in Tel Aviv and Haifa. Although Tel Aviv had by far more workshops and factories, the demand for electric power for industry was roughly the same for both cities by the early 1930s. [11]
Palestine Airways (also: Palestine Air Transport) was an airline founded by Zionist Pinhas Rutenberg in British Palestine, in conjunction with the Histadrut and the Jewish Agency. [12] [13] [14] In 1937 the airline was taken over by British Government's Air Ministry, with the intention of it eventually being transferred back into private hands. [15]
It operated from July 1937 until August 1940, under the aegis of the British corporation Imperial Airways. [16] [17]
Until the beginning of the 20th century, Acre served as the main port for the region. However, the port eventually became clogged with silt, and was unable to accommodate large ships. The first person to comprehend the tremendous possibilities of a port in Haifa was Theodor Herzl, the father of Political Zionism, who in 1902 wrote a prophetic description of the town in his book AltNeuland. Construction of the port began in 1922, and it was officially opened on October 31, 1933 by Lieut. Gen. Sir Arthur Wauchope, the British High Commissioner for Palestine. [18] The port allowed Haifa to blossom, and in 1936, the city had over 100,000 inhabitants. The port was a gateway for thousands of immigrants after the Second World War. [19] The port had been the scene of the Patria disaster in 1940, which killed 267 people.
The 1948 Arab–Israeli War, also known as the First Arab–Israeli War, followed the civil war in Mandatory Palestine as the second and final stage of the 1948 Palestine war. It formally began following the end of the British Mandate for Palestine at midnight on 14 May 1948; the Israeli Declaration of Independence had been issued earlier that day, and a military coalition of Arab states entered the territory of Mandatory Palestine in the morning of 15 May.
Haifa is the third-largest city in Israel—after Jerusalem and Tel Aviv—with a population of 282,832 in 2021. The city of Haifa forms part of the Haifa metropolitan area, the third-most populous metropolitan area in Israel. It is home to the Baháʼí Faith's Baháʼí World Centre, and is a UNESCO World Heritage Site and a destination for Baháʼí pilgrimage.
The Battle of Haifa, called by the Jewish forces Operation Bi'ur Hametz, was a Haganah operation carried out on 21–22 April 1948 and a major event in the final stages of the civil war in Palestine, leading up to the 1948 Arab-Israeli War. The objective of the operation was the capture of the Arab neighborhoods of Haifa. By mid-May 1948 only 4,000 from the pre-conflict population estimate of 65,000 Palestinian Arabs remained in the city.
Pinhas Rutenberg was a Russian businessman, hydraulic engineer and political activist. He played an active role in two Russian revolutions, in 1905 and 1917. During World War I, he was among the founders of the Jewish Legion and of the American Jewish Congress. Later, he immigrated to Mandatory Palestine, and through his connections managed to obtain a concession for production and distribution of electric power and founded the Palestine Electric Corporation, currently the Israel Electric Corporation. A vocal and committed Zionist, Rutenberg also participated in establishing the Haganah, the main Jewish militia in pre-war Palestine, and founded Palestine Airways. He subsequently served as a president of the Jewish National Council.
Israel Electric Corporation is the largest supplier of electrical power in Israel and the Palestinian territories. The IEC builds, maintains, and operates power generation stations, sub-stations, as well as transmission and distribution networks in Israel.
Reading Power Station is a natural gas fueled thermal power station supplying electrical power to the Tel Aviv District in central Israel. It is in the northwestern part of the city at the mouth of the Yarkon River.
Yoav Gelber is a professor of history at the University of Haifa, and was formerly a visiting professor at the University of Texas at Austin.
The Palestinian people are an ethnonational group with family origins in the region of Palestine. Since 1964, they have been referred to as Palestinians, but before that they were usually referred to as Palestinian Arabs. During the period of the British Mandate, the term Palestinian was also used to describe the Jewish community living in Palestine.
Naharayim, historically the Jisr Majami area, where the Yarmouk River flows into the Jordan River, was named by the Palestine Electric Company in a letter dated 27 February 1929 to Palestine Railways giving "proper names" to the "different quarters of our Jordan Works" one of these being the "works as a whole including the labour camp" to be called "Naharaim" and another being the site of the "Power House and the adjoining staff quarters, offices" to be called Tel Or. Most of the plant was situated in the Emirate of Transjordan and stretched from the northern canal near the Ashdot Ya'akov in Northern Mandatory Palestine to the Jisr el-Majami in the south.
Abu Shusha was a Palestinian Arab village in the Haifa Subdistrict. It was depopulated during the 1947–48 Civil War in Mandatory Palestine on 9 April 1948 during the Battle of Mishmar HaEmek. The village was inhabited by Turkmens.
Abu Kabir was a satellite village of Jaffa founded by Egypt following Ibrahim Pasha's 1832 defeat of Turkish forces in Ottoman era Palestine. During the 1948 Palestine war, it was mostly abandoned and later destroyed. After Israel's establishment in 1948, the area became part of south Tel Aviv. Officially part of Giv'at Herzl, the adjacent Jewish neighborhood, the name Abu Kabir continued to be used. Part or all of Abu Kabir was officially renamed Tabitha by the Tel Aviv municipality in 2011.
The Cement Incident took place in the port of Jaffa in Palestine on 16 October 1935. While Arab dockers were unloading a consignment of 537 drums of White-Star cement from the Belgian cargo ship Leopold II, which were destined for a Jewish merchant called J. Katan in Tel Aviv, one drum accidentally broke open spilling out guns and ammunition. Further investigation by British Mandate officials revealed a large cache of smuggled weapons, comprising 25 machine guns, 800 rifles and 400,000 rounds of ammunition contained in 359 of the 537 drums, but because the merchant was not identified and the final destination was not uncovered, no arrests were made.
Events in the year 1942 in the British Mandate of Palestine.
Events in the year 1935 in the British Mandate of Palestine.
Jaffa, also called Japho or Joppa in English, is an ancient Levantine port city founded by the Canaanites that is now part of southern Tel Aviv, Israel. Sitting atop a naturally elevated outcrop on the Mediterranean coastline, it was a strategic location that exchanged hands repeatedly in ancient Near East history, and was also contested during the Crusades, when it presided over the County of Jaffa and Ascalon.
Harry Sacher was a British businessman, journalist, and Zionist leader. He was appointed director of Marks & Spencer in 1932.
Mandatory Palestine was a geopolitical entity that existed between 1920 and 1948 in the region of Palestine under the terms of the League of Nations Mandate for Palestine.
The Arab Palestine Sport Federation was a governing body of sport activities for Palestinian Arabs in Mandatory Palestine. The federation was active between 1931 and 1937 and between 1944 and 1948. It organized a variant of activities in various sports, mostly in football, boxing, and weightlifting.
Palestine Airways was an airline founded by Zionist Pinhas Rutenberg in British Palestine, in conjunction with the Histadrut and the Jewish Agency. In 1937 the airline was taken over by British Government's Air Ministry, with the intention of it eventually being transferred back into private hands.
The First Jordan Hydro-Electric Power House, also known as the Rutenberg Power Station or the Naharayim Power Plant or the Tel Or Power Plant, was a conventional dammed hydroelectric power station on the Jordan river, which operated between 1932 and 1948. It was situated in the Emirate of Transjordan, but built to supply power to Mandatory Palestine. The plant was built in an area known as Jisr el-Majami, later renamed by the Palestine Electric Corporation as Naharayim, and following the Israel–Jordan peace treaty it is today part of the Jordanian area of Baqoura.