Confused Strategy: How the PA Sold Out Palestinian Unity (Ramzy Baroud)

Ramzy Baroud -- World News Trust

July 13, 2011 -- If you happen to be a Palestinian government employee, chances are you will receive only half your usual salary this month. The other half will only be available when international donors find it in their hearts to make up for the huge shortage of funds currently facing the Palestinian Authority (PA).

With a deficit standing at around $640 million, the PA government of Prime Minister Salaam Fayyad is experiencing one of its worst ever financial crises. However, the Palestinian economy is not a real economy by universally recognized standards. It survives largely on handouts by donor countries. These funds have spared Israel much of its financial responsibility as an occupying power under the stipulations of the Fourth Geneva Convention. They have also propped up a Palestinian leadership that tries to secure its own survival by serving the interests of major donors.

The funds, however, are now drying up. This could be due to a political attempt to dissuade PA President Mahmoud Abbas from seeking recognition of a Palestinian state at the UN next September. PA officials have been greatly angered by the shift, blaming donor countries -- including Arab countries -- for failing to honor their financial commitments.

Yasser Abed Rabbo, Secretary-General of the PLO, spoke of an ‘unprecedented’ crisis to Voice of Palestine Radio. “The situation has become very complicated for the Palestinian Authority because of the failure of the Arab countries to fulfill their financial promises.”

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