Palestinian hardships rise

Palestinians have experienced extreme difficulties as a result of the Israeli military re-occupation of Palestinian areas. Several months of intensive violence, closures and restrictions on the movement of goods and labour force have decimated practically all sectors of the economy.

Indeed, the Palestinian economy is suffering from a severe recession according to a World Bank report issued last month. Unemployment has tripled to almost one-third of the workforce. Real incomes have fallen by almost 30 per cent and the proportion of the poor has doubled to almost half of the population of the West Bank and Gaza Strip.

The Israeli military actions have also targeted the infrastructure and buildings financed by the international donors in the framework of the development programme of the Palestinian territories.

The current situation outlines the absence of an autonomous and independent Palestinian economy. The Oslo agreement, together with its economic protocol has failed to deliver the prosperity of the Palestinian territories as promised. The Palestinian Authority is now surviving only on international aid. Therefore any disruption in the flow of this aid will have direct consequences on its capacity to meet its financial obligations.

Assistance

International assistance was essentially political money donated for the purpose of supporting the Palestinian Authority and consequently the peace process during the transitional period.

This policy was initiated at the donors' conference in Washington in October 1993 after the signing of the Oslo accords.

It was well understood that peace would only be implemented if there were sustained improvements in the living conditions for the Palestinians in the West Bank and Gaza Strip.