World Bank: PA must undertake reforms
Organization announces USD 42 million grant to Palestinian Authority; Bank’s Director for West Bank and Gaza says, ‘it remains a critical priority for the PA to undertake comprehensive reforms to bring down the deficit to sustainable levels’
The World Bank announced a USD 42 million grant to the Palestinian Authority, which was plunged into a financial crisis by a drop in revenues after the Islamic terrorist group Hamas won Palestinian parliament elections in January.
A World Bank statement said the money was to help the authority meet immediate financing needs and to "avoid suspension of vital basic services to the Palestinian population."
With Hamas — listed as a terrorist organization by the United States, Israel and the European Union — poised to form the next Palestinian government, Israel has frozen the transfer of about USD 50 million a month in customs and tax receipts collected on behalf of the Palestinian administration.
The U.S. has demanded the return of about USD 46 million in unspent direct donations to the outgoing government.
Israel has said it will not give money to the Palestinian government for fear it would be used for terror attacks, but Israeli leaders have said they want to prevent a humanitarian crisis among the Palestinians.
The EU gave the Palestinians USD 143 million in emergency aid last month, noting it would reconsider its contributions when a Hamas Cabinet takes office.
'One out of four Palestinians unemployed'
David Craig, World Bank Country Director for the West Bank and Gaza, said that the money will allow the PA to maintain stability in the short term by covering urgent payments for salaries of civil servants, for example, but added that “it remains a critical priority for the PA to undertake comprehensive reforms to bring down the deficit to sustainable levels."
The World Bank said in a statement that West Bank and Gaza continue to suffer from a debilitating economic recession brought on by restriction on movement of goods and people since the September 2000 intifada.
“Today, more than 40 percent of the Palestinian population lives below the poverty line of USD 2 a day, while one out of four Palestinians are unemployed,” it said.
“Since the outbreak of the intifada, the World Bank has focused on responding to short-term emergency needs as well as providing medium-term development assistance. In addition to administering the Reform Fund, the World Bank is currently financing 12 projects totaling USD 154 million in the West Bank and Gaza, aimed at delivering a range of services such as health, education, and basic municipal services as well as creating jobs for the Palestinian people."
Associated Press contributed to the report
