The last thing the Pals want is economic independence...since it would come with economic responsibility and enormous risk: you can't keep skimming off money and lining your pockets if you have to make the money yourself.

And lefties in the US say we should cut off aid to Israel? Hmmm. They might wanna consider using their brains for once. The PA is unsustainable. What makes people think anything would change if there became a 'palestinian state'? Not a thing would differ; it'd still rely on donations and never attempt to build a nation...much like gaza whove spent all their energy on attainig weapons rather than farming, etc. Its a giant joke.

is, and always has been, based on a social welfare system. In this region, at least (Gush Etzyon), the Arabs who reside in neighbouring villages do not pay taxes based on housing nor land nor do they pay for electricity or water. Their living requirements, given that they reside in villages outside cities and towns, are quite simple. Those who work on construction projects in Jerusalem or in neighbouring Jewish villages earn enough to enable them to live quite comfortably yet they earn much less than what a Jewish labourer would be forced to charge in order to earn a sufficient living to support his family. Other than that little tidbit, it's obvious that several generations of Palestinian Arabs have grown up with a social welfare or semi-social welfare mentality which, in the end, has sapped their initiative and kept them dependent on donations from foreign sources. In contrast, next door to them, the state of Israel is one in which initiative and achievement are prime factors in the growth of the nation. While Mr. Faayad has set himself the task of changing the economic conditions amongst the Palestinian people who exist east of Israel, it will continue to be a very difficult matter, perhaps an impossible one, given what's become of the mentality of the people (almost inbred) and their dependence on outside sources. Add to these conditions the long history of corruption amongst the Palestinian leaders (see Yasser Arafat) and the task of changing the economy by altering the mentality of the people may well be overwhelming. It appears to be to the benefit of the Arab nations which donate to the Palestinian regime because these very contributions keep the Palestinians from becoming independent. Arab regimes can then always point towards the Israeli "enemy" as the cause of problems in the mideast, thereby fending off any internal detractors of their own regimes. Now that we see a revolution of some kind or another in Tunisia, it may be that such tactics (blame Israel by diverting attention to "Palestine") will not continue to work so effectively. I am not sure what the results of such a sea change in the mideast would mean, if it comes about, however.

Why is the West financing a war against us? That question is at the heart of things.

"setlers hurt my crops" scams, they know that money is much more avelible there than the money they actually need to work for. they will demand it if it others won't give them any.

Without all kinds of aid and donation from the west and especially from the US, which has been going on since 1948, Israel would not have a chance of surviving. Every body knows that.

Well,well who needs a Palelestinian state when the money is pouring in from the USA,EU ant the world bank not to mention the money from secret donations---Iran and the rest

Terry, that's because the OPEC has made the destruction of Israel the condition to keep oil prices at acceptable (to the West) level. IMHO

...the architects of UN Security Council Resolution, 242, is that an independent state in the disputed territories, even under the best of circumstances, has never been possible for purely pragmatic reasons. Therefore, the way out is for Egypt, to take over Gaza and for Jordan much of the West Bank. Note: UN Security Council Resolution, 242, does not call at all for the setting up of an additional state in the region and does not make use at all of phrases such as "Palestinians" or "Palestine". UN Security Council Resolution, 242, thus, should be applied, AS IS, and the international community should support this approach, having voted unanimously for this resolution, one that has been accepted by ALL relevant parties to the conflict.

thank you for your Analytical Efforts, waiting for a new study about the impact of the occupation, settlements, checkpoints,and Apartheid Wall on the Palestinian economy . But above all, what is needed from the "Israelis" in particular is a comprehensive plan to fully end the occupation, then let us be with our corrupt ( Your friends ) and clean leaders face to face......Palestinian economy will be run like any other economy it will do without aid. Ynet , I hope this posting will not be censored again, taking into account it was revised ; )

With all the money already donated , where is the basic infrastructure in place ( welfare, education, medical, industry) to manage a State? A sovereign State does not live off international aid, it must exist on it's own merits, poor, comfortable or rich depends on it's own laurels alone. Things do not look good, western countries will not donate forever.

This is true since 1948 when UNRWA was set-up. All these people do is sit around and take money.

No, Haider, Israel has one of the stronger economies in the west and we do not need any foreign aid. The American military aid we do get is of course welcome in the face of existential threats we face, but most of the aid money goes to pay American defense companies to keep the U.S. military-industrial complex happy. Next time do some research before you talk back, and get your facts correct.

Egypt is not occupied but around 25% of it go by USD 1.5 per day. Syria doesn't have any economy to speak of, neither does Jordan, while Lebanon only fares better due to tourism and Iran's money and some foreign capital, but still - no economy( ever heard of anything outstanding to be manufactured in these countries?) Please explain what your people can offer to create and produce and how you can build a vibrant economy? Do you seriously mean you will become a Singapore of the MidEast if there's no Israel to bother you? Are you sure? You happen to be better off only due to proximity of Israel's economy and the fact that luckily for you - your enemy is Israel, and not let's say Egypt or Jordan which ruled you till 1967( otherwise no-one would have noticed you), without Israel you'll come crashing down. Your pseudo-patriotic slogans will not make your people work. Finally clean leaders in your society simply don't exist - look at Tunisia, Lybia, Syria, S. Arabia, Egypt - do I need to go on? Bribery, corruption, laziness, stagnation is a mark of that part of the world, how are you guys any better?

your Talkback with the phrase "Be fair", I'd ask you you do some surface research on the state of the Israeli economy. You might be surprised to learn how strong it is. Then, if you were to "Be fair", you might wish to reflect on your opinion about Israel's dependence on the USA.

and often breed them at their home ground too.

aid is around 2% of Israeli GDP and 60% of PA GDP. Exactly the same thing.

along since the Oslo process failed (experiments can fail we must realize) that we must go back to square one which was probably the most pragmatic one: applying United Nations Security Council resolution, 242, without any changes, just as it appears in the resolution, black on white.

of their terror charity work

The author conveniently pushes the occupation (in all its forms, including total control over crossings, tariffs, foreign transactions, import/export, etc) under the carpet then blows a draft of dusty air into our eyes, with the hope that we will come to the false conclusion that Palestinians living in the West Bank are somewhat and inherently unproductive. This couldn't be further away from the truth, as Palestinian ingenuity and productivity in the greater Arab world speaks for itself. Given conducive conditions, the Palestinian nation's productivity could sky rocket. All is required is freedom, territory, and sovereignty. The PA itself was supposed to be a transitional entity, not an "entrenched" pseudo "government" running the affairs of a virtual state with no sovereignty, not even the freedom of its central bank governor to travel around and in/out of the country unhindered. We all know that corruption is still major problem in the PA, and some would argue it has become less severe than in the occupation administration, but to claim that the West Bank economy is a free economy is worthless propaganda. Another pitfall (deliberate, apparently) is the author's absurd statement below: "In fact, the Palestinian people receive the largest amount of donations worldwide." Is the author aware that only 15% of the total Palestinian population worldwide actually reside in the West Bank? What is aid per capita in the refugee camps in neighboring states? In any case, it's time for the world to midwife a Palestinian state and permanently expel the occupation, and if this does not occur there will be choice but to disolve the Palestinian "Authority" and transfer back to the occupying power all administrative and economic responsibility, as pre-Oslo. Enough with lies and make-believe. A one-state is already here, plus a bantustan called the PA. Throw back the burden of occupation.

Rothschild had the answer when he was providing funding for the pre state zionists. He financed the creation of businesses to allow the zionists to earn their own money rather than throwing cash at them every year. I know everybody wants to compete on how much money they can give to the palestinians but it does nothing to make them ready for the state all these countries claim they want to see. Its like the third world all competing with each other on who can be the next one to recognise a palestinian state before the arabs themselves recognise it exists. Recognising a non existent state won't make magic it into existence. Since becoming president Obama and his Democrat led Congress who just ribber stamped anything he proposed when it came to money he gave the palestinians around an extra $1 billion not already budgeted for. Non of this money is being used for useful projects just glamerous ones like a new town which only richer palestinians will ever be able to buy homes in. No matter how much we give them Abbas never seems to have enough money to pay his people so he comes asking for more money to pay them. If they want to help palestinians create a state don't take out the checkbook whenever Abbas says he needs some money finance and oversee the construction of ordinary non glamerous projects that are needed for a state. Instead of all working in the settlements which the PA criticise then they will be creating their own jobs and getting something useful out of it. Time for the west lo learn to say NO to palestinians when they ask for money.

The difference between us nd the palis is that the money goes to line the pockets of pali officials. Just about nothing has gone into building or improving any infrastructure. Israel, on the other hand, has built, developed, grown. We absorbed hundreds of thousands of imiigrants from backward countries (north Africa, Yemen), built up the agriculture, indusstry, housing. That's the difference. The Palis could have had it all. We left them thriving greenhouses in Gaza, when we were forcibly evicted from there. the first thing the Palis did was to go on the rampage smashing and burnign those greenhouses. It was shown on television. Then they whined about how poor they were andyou and the rest of the world fell for their sob story.

Salma, if Israel were to completely disappear and cede to you all our thriving agriculture and industry, the Palestinian still wouldn't have an economy. Most wouldn't know how to deal with it, but anyway, msot of their bully brethren would run amok - as they did when we left Gaza - smashing, burning, looting and generally turnign a thriving, green country into a barren desert. Then who woul dyou blame. you just don't get it, do you? You show absolutely no inclination to help yourselves. you sit around whining and taking international aid and still you don't have an economy. You never will. Get used to it.

surely the countries that should be paying aare those that attacked the newly formed state in 1948. i.e. syria, palestine (jordan) lebanon, saudia arabias and iraq. all the donating countries never gave a penny to the near 1 million jewish refugees from arab/moslem lands. i object to my hard earned taxes being given to murderers and their cohorts

and last time i checked even the wildest claims for refugees was 9million and 3.5 million is not 15% of 9million. Glad those UNWRA are doing their job well.....

This is a stupid artocle and research. I do not need a research to tel me that Pal. is Dependant on Donations. It is an occupied country and only 3.96 Bil. Israel takes about 10 billion in guarantees a year and 3.5 in Direct aid from the us. So who is Dependant . Israel has no shame using its past to shack down countries. grow-up.

..AND THEY FAILED MISERABLY - YOU GIVEN ISRAEL BY HADRIAN OF ROME - IT WAS CALLED SYRIA PALESTINA - YOU FAILED - THE LAND WAS DESOLATE - THE PALIS ARE A FAILURE AS A PEOPLE, CULTURE, RACE ETC...