Foreign aid and development in Palestine

Abstract

Foreign aid is a multi-level process the effectiveness of which should be dealt with given the political and administrative backgrounds of the country in question. This study is an attempt to give a preliminary assessment of the international aid to the Palestinian National Authority (PNA). In this sense and because the study represents the views of analysts in an aid-recipient country this study is unique. Although it is still too early for a full assessment of the impact and long-run consequences of donor assistance being provided to the PNA, there are some preliminary conclusions that can be drawn at this stage. A close examination of the data confirms that one of the most pressing immediate goals of foreign aid to Palestine is that of political survival. The study highlights the need to reconsider issues of sectoral priority, project selection and the choice of development strategy by both local and international policy-makers involved in the nation-building process ongoing in the West Bank and Gaza Strip_ These issues have become more complicated due to the prolonged border closure of the Palestinian Territories (PTO by Israel most stringently since February 1996 on one hand. On the other hand, the failure of the PNA to follow a truly free market-oriented development strategy and to implement programs and projects of clear-cut priorities has added to this complication. All in all the commitment for peace is becoming intertwined with the commitment for development.