APPENDIX
NON-EUROPEAN FUNDING TO THE PA
US AND WESTERN
NATIONS
According to USAID, the official arm of US development
and assistance programs overseas, America is the largest single-nation
bilateral donor in the West Bank and Gaza, having given some $1.5
billion (approx. 1.25 billion) in the period 1993-2004.
[52]
Many other non-EU nations, as diverse as Norway,
Japan, Canada and New Zealand have consistently paid out generous
aid allocations to the PA in excess of their existing commitments
to UNWRA. Japan, for instance, a nation with little perceived
strategic interest in the fate of Israel and the Palestinian territories,
gave $767 million (640 million) in the 10 years following
1993. [53]
WORLD BANK
The World Bank, meanwhile counts itself the
"fifth largest donor in the West Bank and Gaza," having
disbursed some $260 million (216 million) to the PA since
the start of the intifada in September 2000, "including
over $100 million on behalf of other donors." [54]
In recent months the organisation has increased
its role mediating potential solutions for the economic recovery
of the Gaza Strip post-disengagement soliciting substantial increases
in international aid commitments for large-scale structural projects,
such as the proposed Gaza seaport and airport.
ARAB LEAGUE
Harder to trace are the donations of Arab League
members, which have been estimated at anywhere between $1 billion[55]
and $2 billion: [56]vast
quantities of which have been funnelled through private accounts
of pan-Arab financial institutions. In February 2004 an IDF raid
on Ramallah Branch of The Arab Bank uncovered a raft of documentation
that, according to Israeli authorities, proved the Bank's instrumental
role in the systematic laundering of funds for both terrorist
activities and graft. [57]
ISRAEL
Partly due to the fungible nature of much of
the aid from the Arab world, Israel, by the end of 2000, began
withholding substantial sums of VAT revenue and excise owed to
the PA for fear it would be used to fund terrorist attacks against
its citizens. Under growing US pressure, however, Jerusalem was
forced to abandon this policy following the 2002 appointment of
Salaam Fayad to head up the PA Finance Ministry. Fayad, an internationally
respected US-trained IMF official, began instituting major reforms
in the handling of PA funds, introducing the direct payment of
PA salaries through banks rather than by cash and even confronting
PA Chairman Yasser Arafat's personal control of the vast PA Presidential
budget.
Between January and August 2003 Israel had paid
out NIS 1.15 billion (232 million) of the NIS 2 billion
(404 million) held back in tax revenue during 2001 and 2002.
[58]The
remaining NIS 850 million (172 million) was used, by order
of the Israeli courts to pay outstanding Palestinian Authority
debts to Israeli hospitals, public authorities and utility companies.
[59]
November 2005
52 USAID West Bank and Gaza Program Budget: http://www.usaid.aov/wba/budget.htm Back
53
Ministry of Foreign Affairs, Japan: http://www.mofa.uo.jolregion/middle
elpalestine/summarv.html Back
54
World Bank press notice 2004/333/MNA: "World Bank Launches
Multi-Donor Trust Fund To Support Reform Program," 27 April,
2004. Back
55
For a discussion of the disbursement of the openly pledged $1
billion in funds from Arab League members since 2000 see ECI Issue
Brief "European Funding of Palestinian Institutions,"
January 2004, p 14. Back
56
"Managing European Taxpayers' Money" cites a now expired
link on Saudi Arabia's UK Embassy website indicating that the
Kingdom alone has given close to $2 billion in aid to the "Palestinian
cause" (Appendix A, p 36). Back
57
For a more detailed discussion of Israeli allegations that the
Arab Bank has played a leading role in laundering funds for terror
see: http://www.intelliaence.org.il/eng/finance/bank.htm Back
58
Figures Based on the Representative Shekel (NIS)-Euro ()
exchange rate of 4.95 on 1 August 2003. Back
59
"Israel Completes Hand-Over of Tax Levied for PA,"
Ha'aretz, 5 August 2003. Back
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