Select Committee on International Development Fourth Report


6  Development assistance under conditions of occupation

The role of donors

130. The previous International Development Committee's report on the OPTs commented on the difficult and limited role which international development assistance can play under conditions of occupation. The case made then, which remains valid today, is that while increasing levels of international assistance helps to stave off humanitarian catastrophe, donors are effectively subsidising Israel's occupation and relieving Israel of its duty to maintain basic services for the occupied population.[200] Most donors are acutely aware of this but are understandably unwilling to disengage, believing that Israel would not in fact step in and fill the gap left by donors.[201] We agree that under the current circumstances donors should not disengage from the OPTs.

131. However, it is worrying that three years after the previous International Development Committee reported the same conclusions can be made. As DFID notes in its evidence, "decades of occupation and conflict with Israel have severely constrained Palestinian development."[202] Looking back to the evidence they submitted in 2003, Christian Aid told us:

"under tighter Israeli occupation, aid has become a lifeline—but it is a lifeline that does not provide a long-term solution….. No amount of aid will resolve the political conflict over the Israeli occupation or bring about the peace which Israelis and Palestinians so desperately need. The solution to Palestinian poverty is an end to occupation and an agreement which recognises the right of Israelis and Palestinians alike to live in peace and security. The situation today is far worse, so we need to repeat these comments again today with even greater urgency."[203]

Indeed much of the evidence we received points towards the need for an end to occupation—for a political solution, as a precondition for development.[204] The question of what can be done in the absence of a political solution or how leverage can be exerted, is often avoided.

132. The DFID programme seeks to enhance the prospects for peace, to make Palestinian institutions more effective and accountable, and to deliver humanitarian and development assistance more effectively.[205] These are important objectives but the current situation makes the first two in particular largely unachievable. We agree that there is an urgent need for a political solution, and an end to occupation, but consider that there are interim actions which can and should be taken by the international community to work towards one. For example DFID has contributed to the building up of the Palestinian Authority and other institutions, and has supported the Negotiations Support Unit, with a view to eventual self-government. Such initiatives provide opportunities for increased levels of independence and Palestinian-led development. These are welcome initiatives. Unfortunately, as we have noted, the current policy of not funding PA institutions threatens to undo much of the progress which DFID has helped achieve and increases the risk of collapse of the PA as anticipated by DFID in their Country Assistance Plan of 2004.

133. The Quartet conditions and the withdrawal of direct funding have placed the Hamas-led PA under severe pressure. We heard different views as to whether the withholding of revenues and the effect this had on public servants, as well as the services they deliver, was likely to undermine Hamas or to entrench them. The GoI has adopted similar measures by withholding tax revenues and has also increased military pressure and 'closure'. It has been reported that the Government of Israel has released $100 million of the withheld revenues to the Palestinian president.[206] This is a welcome development. However there is no legitimacy to the withholding of any of the revenues and the decision to release only a small part of these will have limited effect on the crisis facing the Palestinian economy. Pressure must be placed on the GoI by the UK and the Quartet to release the full amount due as soon as possible.

134. We have said that we do not think that donors should disengage from the OPTs under the current circumstances, but this does not mean that donors should not place pressure on Israel to abide by those international laws which govern military occupation. Again, this was an issue which was raised by the previous International Development Committee. The UK Government response at the time was that it agreed that Israel should respect the Geneva Conventions and that it raised specific breaches with the Israeli Government at the highest levels.[207] The Government also said it regularly urges the Israelis (and the Palestinians) to do more to fulfil their Roadmap obligations. The UK Government position then was that 'constructive engagement with Israel is the best approach to exert influence on it to take the steps called for by the EU and in the Roadmap.'[208]

135. The effect of this constructive engagement has thus far been very limited. Many of the obstacles identified in 2004 continue to cause problems for the Palestinians and 2006 has seen a worsening socio-economic and humanitarian situation. Christian Aid evidence states:

"Occupation is the main obstacle that Palestinians face on a daily basis and that undermines the viability of a Palestinian state. The apparatus that supports and perpetuates occupation—the settlements, the separation barrier and the closures—prevent Palestinians from going about their daily business and denies them their rights and access to their cultural and historical legacies."[209]

136. The way in which donors engage with Israel is as important as development assistance to the OPTs. David Shearer discussed with us the probability that the international community was allowing a failed state to be constructed on Israel's borders at the very moment it was trying to prevent such states emerging elsewhere.[210] Our report highlights the lack of progress in development since the previous Committee's report on the OPTs in 2004. This lack of progress sits uneasily with the large amount of donor funding going into the OPTs and raises questions about donors' policy towards Israel.

137. The existence of the settlements and the requirement to protect and secure them has created a complex system of separation under which Palestinians must live. The current system of closure if taken to its logical conclusion will make a future Palestinian state unviable. This must not be allowed to happen. The future of the West Bank and East Jerusalem settlements should be a matter of priority for the international community. The constructive engagement approach has not placed it sufficiently high on the agenda. The UK and the international community need to reconsider their approach towards the Government of Israel.

Looking forward: the current ceasefire

138. One effect of the ceasefire between Israel and the Palestinians has been to reduce significantly the number of fatalities in Gaza resulting from IDF actions.[211] The ceasefire has also opened up the possibility of talks between the GoI and the Office of the President. Discussions between Prime Minister Ehud Olmert and President Abbas on 24 December 2006 offered the promise of some revenues being released and future peace talks. However these discussions took place amidst growing unrest between supporters of Fatah and those of Hamas in the West Bank and Gaza. There have been accusations of outside interference by both factions. What is clear is that if internal Palestinian violence continues, or if any party feels it is being pushed out of office illegitimately, the prospects for peace in the region could be seriously undermined.[212]

139. As the elected government, Hamas should be consulted in any negotiations, but Hamas has not demonstrated willingness to engage in talks under the current circumstances. The Office of the President should be working alongside the Hamas-led government to help them adjust to the realities of government and to create a climate in which negotiations and engagement with the international community are possible. Efforts in this regard have not yet yielded results.[213]

140. The international community must also consider whether isolation is the best way of effecting change. International Crisis Group argues that, whilst international isolation may cause the Hamas government to fall, the chaos and violence which would result would undermine any benefits.[214] There are many examples of conflicts where extreme positions have only been modified after dialogue, initially rejected by one or both sides, is eventually entered into. At present there is a stand-off between a Palestinian government that will not recognise Israel and the international community which insists on this as a precondition for even exploratory dialogue on humanitarian affairs, let alone formal peace talks. Ways must be found to foster a dialogue—incentives should be offered as well as penalties threatened or imposed if progress is to be made on the peace settlement.

141. Even if, as many hope, a government of national unity is formed in the OPTs, the international community will probably continue to play a significant role in providing humanitarian assistance to the territories for some time to come. The increase in humanitarian assistance has come about as Israel has tightened its closure policy with severe socio-economic consequences for the Palestinian economy. But humanitarian assistance is not an instrument for ending conflict, nor does it offer prospects for poverty alleviation and long-term development. Humanitarian assistance must be integrated with long-term development planning which seeks to relieve developmental constraints. To this end the UK must work with the Palestinian Authority and other relevant bodies to consider how to rebuild Palestinian institutions and how to restore lost livelihoods which have resulted from events in 2006 and, importantly, how to re-establish confidence in the democratic process out of which Hamas was elected.

142. The way Palestinian political parties conduct themselves is vital to achieving this and there needs to be change in the approaches of both Hamas and Fatah. Vital too is the extent to which the international community demonstrates consistency and even-handedness. The international community must show more clearly that it respects the democratic decisions of the Palestinians, just as much as that of any other people, to elect the government of their choice. In other situations, ways have been found of UK representatives talking to those with whom we have profound and justifiable disagreements because we talk to them in their capacity as elected representatives, not in their capacity as representatives of a particular party or faction. Finding ways of achieving this in this case need not mean a dilution of the international community's insistence that Israel has the unqualified right to recognition and security within legitimate borders any more than our talking to the Government of Israel means endorsing its continued occupation of East Jerusalem, the West Bank and Gaza.

143. Although we are clear that practical action needs to be taken now to relieve the immediate crisis in the Occupied Territories, we are also clear that the Palestinians have as equal a right to self-determination in a viable and contiguous state as the Israelis have to peace and security in their own internationally recognised state. Neither the international community nor the Government of Israel should underestimate the strength of commitment amongst Palestinians to such a state. That message came out strongly during our visit.

144. Palestinian resistance to occupation has taken many forms over the years. Whilst rejecting violence as a means of achieving their aims we support the creation of an independent Palestinian state alongside Israel. The commitment to a two-state solution is set out in UN Resolutions and in the performance-based Roadmap drawn up in 2003. The Roadmap was endorsed by the Quartet and the partners in the Quartet should work more proactively to achieve it, through talks between the parties involved and through measurable and internationally monitored steps to achieve it.


200   International Development Committee, Occupied Palestinian Territories, HC 230-1, (Session 2003-04), para 153. Back

201   Q 28 [DFID] Back

202   Ev 74 [DFID] Back

203   Ev 93 [Christian Aid] Back

204   See also Qs 260, 286 [Hilary Benn] Back

205   DFID, Country Assistance Plan.  Back

206   Associated Press Report Israel unfreezes $100 m before summit, 19 January 2007. Back

207   Government response, HC 487, p 2.  Back

208   Government response, HC 487, p 10. Back

209   Ev 97 [Christian Aid] Back

210   Q 258 [Mr Shearer] Back

211   OCHA Situation Report Gaza, December 2006. Back

212   International Crisis Group, Palestinians, Israel and the Quartet: Pulling back from the brink, June 2006.  Back

213   Qs 283, 288, 291 [Hilary Benn] Back

214   International Crisis Group, Pulling back from the brink, p 2. Back


 
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Prepared 31 January 2007