Where will Palestinian aid go? Case of international mechanism
Posted By Amina Anderson
December 19, 2007
International donors at a conference in Paris have begun pledging aid for the struggling Palestinian economy. But it's unclear how they would make sure that the money reaches those who need it most.
The European Union is currently providing support for essential services in the Palestinian territories through the Temporary International Mechanism (Tim), which has been set up in June 2006 to stop money going to Hamas following its election victory at the beginning of last year.
The Tim, which will end in March, channels direct financial assistance to needy families and to help hospitals and schools cover their running costs.
The EU, which like the U.S. and Israel considers Hamas a "terrorist group", now wants to replace the Tim with a new and more sustainable mechanism.
According to an article on the BBC, international donors would use a massive aid injection to bolster the peace process launched in Annapolis last month.
But how will the money be spent?
Palestinian Prime Minister Salam Fayyad is seeking $5.6bn to fund a three-year plan to reform and rebuild Palestinian institutions - including the security forces.
The money will also be used to develop projects being promoted by Tony Blair, the former UK premier and now the special envoy of the so-called Quartet: the United Nations, European Union, United States and Russia.
Blair has announced plans for a sewage treatment plant in Gaza, which is now controlled by Hamas, as well as a number of projects in the occupied West Bank, the stronghold of President Mahmoud Abbas' Fatah party.
But Fayyad, who is working under very difficult circumstances, has urgent short-term needs. He must pay the salaries of government employees because Israel's payments of the tax revenues collected on behalf of the Palestinian Authority will soon dry up.
Another obstacle to the recovery of the Palestinian economy is Israel's restrictions on the movement of people and goods.
Moreover, Fayyad is only operating in the West Bank, where the PA is based, while Hamas is in charge of Gaza. This of course hampers the Palestinian political progress; which is closely linked to the recovery of the economy. That's probably why international donors are afraid they will be providing humanitarian aid for years to come.
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