Friday, August 20, 2010

Arab states cut aid to Palestinian Authority (While Iran funds HAMAS)

UPDATE BELOW

Map showing the West Bank and Gaza Strip in re...

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UN: Authority having trouble paying salaries; PA spokesman Ghassan Al-Khatib said workers will find money in the bank at the end of the month.

Arab states have cut financial aid to the Palestinian Authority so far this year and the United Nations has warned of a looming Palestinian cash crisis.

"The Arabs are not paying. We urge them to meet their financial pledges," said Saleh Rafat, a member of the Palestine Liberation Organization's executive committee and one of the few Palestinian officials willing to speak out on the matter.

Arab government officials declined to comment on the issue.

The failure of some wealthy Arab states to pay up is frustrating Western governments, which are big contributors to the Palestinian territories. The situation is also leaving officials in the West Bank with a budget headache.

Some Palestinian officials speculate that Arab states might be withholding the cash to try to persuade the Palestinian factions Fatah (which controls the West Bank ) and Hamas (which controls Gaza ) toward reconciliation.

The Ma'an news agency quoted a PA official who denied reports indicating the authority is facing a major cash crisis. PA spokesman Ghassan Al-Khatib said workers will find money in the bank at the end of the month, but conceded that the government was facing a "very severe financial crisis, but one that is being managed," Ma'an reported.

Palestinian Finance Ministry figures showed the PA had so far received $583.5 million in budget support in 2010. Only 22% came from Arab donors, the rest came from international donors including the European Union and the United States.

In the last three years, the most Arab states have paid in any one year was $525.9 million, contributed in 2008, the figures show. Gulf oil exporters Saudi Arabia and the United Arab Emirates have been the main Arab contributors to the PA since 2007. But this year, both have fallen well short of previous support.

This year Saudi Arabia had reportedly paid $30.6 million by August, compared to $241.1 million in 2009. The UAE, which contributed $173.9 million in 2009, has yet to contribute anything.

A UN report this week said the Palestinian Authority "will face a serious liquidity crisis in September and will have difficulty paying August salaries" due to the aid shortfall. PA officials, however, said August wages were secured.

Aid is crucial in helping pay the wages of 148,000 PA employees, including 67,000 in the Gaza Strip, whose salaries help support the Gazan economy that has withered since Hamas rose to power there in 2007.

Palestinian policymakers say donor support has been one of the main engines of strong economic growth in the West Bank, a figure estimated as having reached 8% this year.

Palestinian Prime Minister Salam Fayyad, midway through a two-year plan to build the institutions of a future Palestinian state, warned recently of "serious financial difficulty" and said the PA faced "a significant shortfall in external assistance."

Ma'an also reported that the EU-denied aid to the Palestinians is linked to negotiations with Israel, quoting the head of operations at the Office of the EU Representative in Jerusalem, Roy Dickenson. However he categorically rejected accusations that donor countries were withholding assistance as the international community pushes for a return to direct peace talks.


I mean, what is there to say? The arab's just don't giver a shit about their brother's in the end. Not enough to make a difference when things get tight. Instead it is the WEST which suffering from the worst economic conditions since the 1930's which keeps it's commitments instead of oil, a commodity whose value will continue to increase as supplies peak and then dwindle amid increasing demand in the world.

And meanwhile HAMAS continues with Iranian financial and diplomatic support, weapons, advice and military guidance, as does Hizballah.

And Obama presses Israel to make concessions to the very entity being squeezed out by the arabs themselves.

UPDATE:

Obama invites Israeli, Palestinian leaders to direct talks...



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2 comments:

Unknown said...

Hi Guys.
Again i see the handy work of Obama in all of this talks on Sep2 one day after Turkey takes the presidency of the UN Security Council.Petraeus(Obama's) plan to put UN troops in the streets of Israel suddenly looks a lot closer just as i always said what Obama's plan was.If they don't agree i will "Impose" a peaceplan he said!Is it getting clearer now?

Epaminondas said...

"UN troops in the streets of Israel"

NO CHANCE

""Impose" a peaceplan" ... only if he wants to see Israel vaporize as an ally. As to those who think the Israelis have no choice, put yourself in their place.

No nation ever yet placed on the face of the earth has stood by the jews over any period of time. What lesson would they take from Obama 'imposing' a peace plan? Truman's staunch stance couldn't have lasted forever, eh?

He can't. All Bibi has to do is say NO and look inward for weapons, and then when American Patriot missiles are wanting that software upgrade? The ones standing guard over our troops in Afghanistan and Iraq AND KOREA? What then? When China wants to buy the Phalcon AEW system and Obama has cut off Israel what then? When Russia wants more Hermes 450 and other more advanced drones. A russia ready to sell their mothers for hard cash ... can anyone say BARTER

Obama simply does not have a whip hand. Only his arrogance tells him he does.

Of course it won't be the first alliance he has damaged either. But in the middle east, this one will hurt US just as badly as it is likely to discomfit the Israelis.

Imagine what this would do to the political situation here.