Palestinians' low salaries also linked to Israeli social struggle

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Does the current crisis mean the end of the effort to reduce to zero donor budget support?

"The idea that reliance on donor support must be reduced as a matter of principle - despite the conditions of occupation, with no Palestinian sovereignty or national rights on the horizon - is a bit of a diversion and is in fact unfair to an economy that has been deprived of its capacity to produce, trade, grow and develop for over 40 years. Before donor aid can be effectively and usefully removed, the economy needs to be equipped with the productive means, the infrastructure and the freedom to build and grow, which have been denied in various ways in Gaza and the West Bank. And as long as Israel sits on Palestinian trade routes and captures up to half of the potential import taxes that should be destined for the PA and its strained public revenues - then there is no alternative to sustained donor aid. The PA should neither be ashamed to be dependent on aid, nor should it aim to reduce it; rather it can consider more effective ways of using the aid."

Why does the West appear more committed to contribute than the Arab countries?

"Even two generations after 1948, no Western donor, especially European and American, can be oblivious to their historic responsibility, and to the immediate security and political interests that the continuation of this conflict implies. Hence anything needed to keep a lid on things is to be expected, and indeed comes without asking the cost. As for Arab donors, they do not feel at all the historic responsibility for this situation: Their support for Palestine is more a matter of showing solidarity with their Palestinian brethren - a solidarity that grows and wanes with the Palestinians' domestic situation, with the pliability of the regimes in question when pressured by the West to play their role in this or that peace process, etc. So it is naturally neither predictable, nor seen as a matter of national security or political interest as it is for Western donors. Thus, for the West aid is an obligation they cannot escape; for Arabs it is a duty they must fulfill."

http://www.haaretz.com/print-edition/features/palestinians-low-salaries-also-linked-to-israeli-social-struggle-1.376283