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Palestinians seen slowly weaning from aid

Donor panel says Palestinian aid dependence declining, urges Israel to ease trade blockages

DANIEL WOOLLS
AP News

Apr 13, 2010 12:12 EDT

The Palestinians' dependence on aid is slowly easing but Israel must lift restrictions blocking their territories' economic development, an international panel that coordinates assistance said Tuesday.

The Ad Hoc Liaison Committee said that this year the Palestinian Authority is seeking $1.2 billion from donors, down from $1.8 billion in 2008 and a bit less last year.

The committee, chaired by Norway and co-sponsored by the United States and the European Union, met in Madrid to discuss aid priorities for 2010 as the Palestinians work to create government institutions that would be the foundation of a future state.

Donor countries have given billions of dollars to the Palestinians since 1993 to prop up an economy battered by conflict with Israel and severe Israeli restrictions on Palestinian trade and movement.

Palestinian exports from the West Bank, for instance, are hampered by slow movement of goods through Israeli-controlled crossings into Israel or Jordan.

Palestinian Prime Minister Salam Fayyad, who was here for the meeting, said that if Israel were to lift its blockade of the Gaza Strip, the Palestinians' need for aid would drop by $500 million a year.

http://wire.antiwar.com/2010/04/13/palestinians-seen-slowly-weaning-from-aid/