Palestinian Statehood: Economy Not Stable Enough, Israeli Government Report Finds

Members of the Palestinian community in Colombia demonstrate against Colombia's position of not to vote the recognition of a Palestine statehood by the UN, at Bolivar Square in Bogota on October 11, 2011. (CAICEDO/AFP/Getty Images)

JERUSALEM -- An Israeli government report says the Palestinian Authority is not economically stable enough for statehood.

The report is set to be presented this week to donors to the Palestinian Authority. They include the U.S., the EU, the World Bank and the International Monetary Fund.

The report says Palestinian "financial stability is now challenged." It cited a shortfall of foreign aid and lack of development in the private sector.

Last year the IMF said Palestinian financial institutions were ready for statehood.

Palestinian spokesman Ghassan Khatib rejected the Israeli report, citing statements by the IMF and others. "As Palestinians we are ready for statehood," he said. "Our institutions are ready."

Donors have given billions of dollars to the Palestinians since 1993.

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Comments

[hellothereandhere]

01:55 PM on 03/22/2012

huh, so which economy around the world is stable enough for Statehood ? Specifically when sanctions and boycotts can be used ad libitum on most of the states around the world...

[geezach]

03:37 PM on 03/20/2012

Who believes anything the Israeli's have to say about anything, least of all Palestinian readiness for statehood.

[BcemXAHA]

09:09 PM on 03/19/2012

WASHINGTON, March 17, 2012 (AFP) – The International Monetary Fund urged donor countries Saturday to honor their promises to the Palestinian Authority, whose economy is entering a “difficult phase” and could further deteriorate.

The Palestinian economy is experiencing a serious drop in liquid assets that has worsened since last year due to a reduction in aid from Western and Gulf countries, as well as trade and movement restrictions imposed by Israel, an IMF report said.

The report, prepared for a meeting of donor countries in Brussels next week, estimated a financing gap of about $500 million.

It said only $800 million of donor aid was disbursed to finance the 2011 recurrent budget, compared to $1 billion anticipated. And development budgetary aid stood at just $169 million, compared to a budgeted $500 million.

It said there was a “high risk” that the gap would trigger cuts in wages, social transfers and other essential spending. The IMF called for “concerted efforts” from the Palestinian Authority, the Israeli government and donor countries to bridge the financing gap.

“It will be very difficult for the PA to cover the 2012 financing gap through austerity alone, without the prompt pledging and disbursement of additional aid,” the report added.

http://vancouverdesi.com/business/more-aid-needed-to-avoid-palestinian-cuts-imf/

[JDOK]

09:12 AM on 03/19/2012

Over the years, Israel has done everything it could possibly do to limit the economic gains and independence of Palestine. Keeping the Palestinians dependent and in a constant state of generational poverty has given the Israelis time to gradually create enclaves and settlements on Palestinian land. Israel continues to do in the Middle East what they do in the US, namely, block all real dialog, create fake issues as diversions, monitor all public conversations regarding Israel and immediately attack anyone or any organization that dares to voice opinions opposing the Israeli agenda and ,under all circumstances, keep our politicians in line by funding pro-Israel candidates. Israel has power in the US completely out of proportion to the Jewish population in this country......why? When is the last time we even debated the $4 billion dollars we send to them every year? Why do our politicians make pilgrimages to every AIPAC meeting?

[Rosin the Bow]

08:20 AM on 03/19/2012

Of course the Palestinian economy isn't ready for statehood, just like the fascist Palestinian governments and their anti-Semitic society.

[Yo Mismo]

04:02 AM on 03/19/2012

How can anyone expect a territory occupied by a brutal foreign military regime that even hinders people and merchandise movement within that very territory (let alone exporting) be anything close to economically viable. Only freedom can bring true prosperity. Occupation has to end.

[Gui Montag]

09:26 AM on 03/19/2012

Somehow the Jews were able to build a prosperous economy while occupied by the British.

[Rosin the Bow]

09:50 AM on 03/19/2012

Somehow the Germans were able to build a prosperous economy while being occupied by the Americans.

[Sonic hedgehog]

01:52 PM on 03/19/2012

When were the Jews occupied by the British?

[Fireslayer]

02:53 AM on 03/19/2012

Right wing Israel should know. They have done everything in their power to destabilize Palestinian efforts to build an economy. What with the refusal to allow and destruction of their infra-structure, the denial of building, water resource garnering and basic human rights- yes they would know.

[Britback]

05:56 AM on 03/19/2012

Ultra right wing Islamist all over Palestine call for the annihilation of all Jews. 66% of all Palestinains call for a one state solution and the end of all Israel- despite it having 1.3 million Arab citizens having full and equal rights under the law. Yet in Palestine Jews have no rights whatsoever

Still u support this supremist gender apartheid entity. Ever think you've been duped?

Happy now?

[Britback]

03:51 PM on 03/19/2012

EVERY Palestinian leader has done everything to deny palestinians a state

[monzambano]

01:56 AM on 03/19/2012

Did the report point out that many of the infrastructure investments Palestine built with the billions of donor funds where subsequently destroyed by Israel or otherwise rendered inoperable, like the Gaza water supply and airport? That Israel specifically targeted Palestine's economic administrative infrastructure, e.g. by making sure all information storage in the office of statistics was destroyed? That Israeli check-points all over the West Bank make travel and hence commerce effectively impossible for Palestinians - in what's supposed to be their own country?

[Taxim]

01:48 AM on 03/19/2012

Is this an Onion piece?

[Vlady]

02:38 PM on 03/19/2012

Yeah. You can get one for free.

[BcemXAHA]

10:52 AM on 03/20/2012

It's an erdolt piece.

[cwaged1002]

12:40 AM on 03/19/2012

Maybe if Israel would stop bombing them back to the stone age and building settlements on their land they might have a chance to build a stable economy.

[Florence Mattar]

10:36 PM on 03/18/2012

It is amazing that people living under a brutal occupation and denial of basic human rights are able to survive and have any economy. I would think if they could have a normal life without all the tension, they would flourish, they will all flourish in Israel/Palestine.

[Vlady]

11:55 PM on 03/18/2012

>>It is amazing that people living under a brutal occupation and denial of basic human rights are able to survive and have any economy.

To make it a bit more credible I've changed couple words:

It is amazing that people living under unstoppable rocket attacks and surrounded by hostile states with brutal dictatorships and with denial of basic human rights are able to survive and have any economy.

[BcemXAHA]

11:14 AM on 03/20/2012

What occupation? nevermind brutal.

[KorySatter]

10:27 PM on 03/18/2012

What the hell was that video at the bottom? "Palestine: Global Conflict?" That's crazy... I don't even know what to think of it, except it seemed pretty pro-Israel and one-sided to me.

[Vlady]

12:12 AM on 03/19/2012

>>it seemed pretty pro-Israel and one-sided to me

Oh sure. It would be politically correct only if it had depicted Israelis as monsters with horns

[Bob Metcalfe]

10:10 PM on 03/18/2012

For god's sake, never mind Israel, there are islands in the Pacific that have representatives in the United Nations whose economies are in far worse shape. Basically they're bankrupt and had to sell themselves to the Chinese or the Taiwanese, who seem to be competing in the area :-).

[fullofmitt]

09:51 PM on 03/18/2012

Arafat stole millions of the money ear-marked for his "people" How do you think his wife can afford a villa in...not Ramallah...but Paris??

[TheBaffler]

08:08 PM on 03/18/2012

Israel, who has been undermining Palestine's economy for decades, says Palestine's economy is unfit to support statehood. Ain't that rich?

[Judane]

09:50 PM on 03/18/2012

LOL "undermining Palestine's economy,"

They have done that all by themselves.
Funny thing, but when you send suicide bombers to and launch rockets at your biggest trading partner, they aren't too interested in rescuing your economy.

[Vlady]

12:00 AM on 03/19/2012

Well said

[Gui Montag]

09:27 AM on 03/19/2012

F&F.