The Palestinian Authority’s growth has been fueled by handouts, but the World Bank reports that dry financial wells may cause an “acute fiscal crisis.”
The latest report, which contradicts previous glowing accounts of how the Palestinian Authority (PA) can maintain itself as stable country, warns of an economic slowdown in the PA, primarily due to the lack of donor countries fulfilling their pledges to fork over billions of dollars to Ramallah.
The World Bank also cited Israel’s security checkpoints as a reason for the PA’s financial problems, but unlike previous reports, the security measures were mentioned as a secondary problem.
Foreign donors, particularly the European Union, have pumped hundreds of millions of dollars to pay Arabs to take over land that had been under Israeli control until the mid-90s. Thousands of Arabs living in Judea and Samaria have received new vehicles to help them criss-cross the country, often skirting Israeli checkpoints that are designed to halt illegal smuggling of poultry, eggs and vegetables as well as to stop terrorists.
The World Bank noted that contributions to the PA from Arab countries in the first half of this year were only one-third of the amount in 2010 and slightly more than 15 percent of the $62 million donated in 2009.
The World Bank does not mention the new financial crisis that is spreading over Europe, threatening to bankrupt Greece and other countries.
Slow growth and the possibility of a recession in Europe could further hamper the ability of the European Union to financial the PA, which has been reliant on it for paying salaries to its inflated work force.
A fiscal crisis could undermine the “promise of…institution-building measures,” according to the World Bank.
“Ultimately, in order for the Palestinian Authority to sustain the reform momentum and its achievements in institution-building, remaining Israeli restrictions must be lifted,” the report said. However, the major roadblock is the PA itself, by virtue of the four-year-old split between Ramallah, headed by Fatah leader and PA Chairman Mahmoud Abbas, and Gaza, ruled by its de facto Prime Minister Ismail Haniyeh of Hamas.
Well Ted, I rest my case. September 7th, 2011, I gave specific numbers and reasons why it would fold. Your thoughts?
The PA will not long be on any breadline if and when the US pulls its money backing for their gang. They will get a bailout from Saudia Inc.
If you want to keep Shomron and Yehuda, you must plant many more Jewish cities, villages, farms, industrial parks and Zahal outposts there. Financial tricks are nothing. Permanent control of the land by your own population is everything.
Remember — and never forget — that at the end of all this, it either is going to be Israel or Palestine. Your enemies are not willing to negotiate even a square kilometer of what they think is their national homeland. If you are prepared to negotiate away any part of the Jewish national homeland, then in the end you or your descendants will be swept right off the face of whatever is left and the State of Israel will become a fleeting memory more or less like the Christian crusader statelets of the 12th century.
Arnold Harris
Mount Horeb WI
Israel is getting intimately involved in the European debt crisis, with its alliance with Greece and Cyprus against Turkey’s imperialist ambitions. NATO will have to decide which side they want to go with. Curiously, Turkey is not an EU member, whereas Greece and Cyprus are; on the other hand, the EU might decide whether or not it might be better off without the Greeks. I just hope the Israelis show more good faith with the Greeks, than they did with their Christian brothers in Lebanon. If Israel repents of its past sins, this could be the opportunity to forge a powerful friendship; but that would assume Israel acting in it’s long-term best interests — something the Jews have yet to consistently do, when Christians are involved.
So, the PA is in trouble! Well, well, they can take their place at the bread line behind many others; and I don’t think the Turks (or the Egyptians, for that matter) will help them one yud.