web analytics
December 18, 2014 / 26 Kislev, 5775
 
At a Glance
News & Views
Sponsored Post
8000 meals Celebrate Eight Days of Chanukah – With 8,000 Free Meals Daily to Israel’s Poor

Join Meir Panim’s campaign to “light up” Chanukah for families in need.



Palestinian Economy in Downfall Born by ‘Reluctance’ to Accept Israel

Palestinians in line to receive their salary in one of the banks in Ramallah.

Palestinians in line to receive their salary in one of the banks in Ramallah.
Photo Credit: Issam Rimawi/FLASH90

A cash crunch due to a severe drop in foreign aid since 2011 may be ushering in business failures and layoffs in the area under Palestinian Authority rule, leading to the worst crisis in the PA’s 18-year existence, according to AP.

It appears that the Palestinian Authority will not survive this crisis without a major infusion of cash.

In recent months, the PA has been unable to meet all its obligations, most notably the salaries paid out to some 150,000 civil servants and security personnel, which account for about half of the Palestinian government’s $4 billion budget.

For comparison, Israel’s annual government expenditures in 2011 were estimated at $74.8 billion, with estimated revenues at $66.68 billion, for a population roughly three times that of the PA.

Arab citizens constitute close to 25% of “green line” Israel.

One of the reasons this coming crisis may last longer and hurt worse is the fact that the PA can no longer borrow money to fill its gaping deficits. Economist Samir Abdullah told the AP that the PA owes more than $2 billion to local banks, private companies and the public pension fund.

“If there is no reversal in the current trend, the Palestinian Authority will not survive this year,” said Abdullah, who used to serve as a PA government minister.

And the PA has received only half the needed foreign aid to close its 2012 budget deficit of $1.2 billion, according to its Finance Ministry.

Palestinian officials blame the U.S. for withholding aid as a means of applying political pressure. The PA was counting on $200 million from the U.S. in budget support in June, but the payment was held up by Rep. Ileana Ros-Lehtinen, R-Fla., chair of the House Foreign Affairs Committee.

The U.S. 2011 payment was delayed by a congressional hold, in response to Palestinian President Mahmoud Abbas’ appeal to the UN to recognize a Palestinian state in the disputed territories.

The United Arab Emirates cut aid from $174 million in 2009 to $42.5 million since the beginning of 2011.

Qatar refuses to send money as long as there’s no reconciliation between Abbas and the Hamas.

Israel has been blamed for the inability of the Palestinian economy to be self-sustaining, because of the security-related restrictions it places on movement of goods, and the 5-year blockade on Gaza.

According to the AP, Palestinian officials, the World Bank and the International Monetary Fund, say the PA government can only become self-sufficient if Israel removes a network of restrictions on trade and access to resources that discourage investment, drive up costs and limit business opportunities.

But despite some loosening of restrictions, the Israeli government is reluctant to open up new opportunities for Palestinian terrorists to squeeze through the protective fences it has erected over the past ten years.

And so it appears the Palestinians are trapped by their own reluctance to accept Israel’s right to exist, coupled with their continued efforts to inflict terrorist attacks on Israel, and this time no one out there seems eager to spare them a dime.

About the Author: Yori Yanover has been a working journalist since age 17, before he enlisted and worked for Ba'Machane Nachal. Since then he has worked for Israel Shelanu, the US supplement of Yedioth, JCN18.com, USAJewish.com, Lubavitch News Service, Arutz 7 (as DJ on the high seas), and the Grand Street News. He has published Dancing and Crying, a colorful and intimate portrait of the last two years in the life of the late Lubavitch Rebbe, (in Hebrew), and two fun books in English: The Cabalist's Daughter: A Novel of Practical Messianic Redemption, and How Would God REALLY Vote.


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

One Response to “Palestinian Economy in Downfall Born by ‘Reluctance’ to Accept Israel”

  1. Shi Yuehan says:

    For 70 years I have watch the Palestinians stew in poverty, while the Jews have turned that arid wasteland into a prosperous oasis. And I can tell you, first hand, the Jewish people were more than happy to lend a helping hand to lift their brothers out of the gutter towards a better way of life. But, no the PA has only been interested in one thing , destruction of the Jewish people. Cut off their nose to spite their face I think is the expression.

Comments are closed.

SocialTwist Tell-a-Friend

Current Top Story
Sydney has banned the  Chabad menorah from being lit this year because of the murders in the Lindt cafe.
Sydney Darkens Hanukkah by Banning Chabad Menorah Lighting
Latest News Stories
Aerial view of Herodian.

Excavations also turned up hidden tunnels dug by Jewish rebels in the period of the Bar Kokhba Revolt.

Sydney has banned the  Chabad menorah from being lit this year because of the murders in the Lindt cafe.

Is Sydney also going to turn out the lights on Christmas trees?

Eli Yishai, member of the Shas party today, but tomorrow is another day.

25-year-old man threatened former Shas party head with violence.

Are machine gun shots all night long and the death from a “work accident” not enough evidence for the EU court?

“It was crucial to my survival knowing that I was not forgotten.“

Feiglin decided he and the Likud party are better off if he fights on only one front, not two or three.

Join Meir Panim’s campaign to “light up” Chanukah for families in need.

I’m sorry, but Naftali Bennett decided to dress up as an aging Tel Aviv Hipster and… apologize…

The New York premier of Sony’s new film, “The Interview” has been scrapped due to a terror threat.

Harvard boycotts SodaStream to avoid offense to Palestinian Arab students.

FM Avigdor Liberman refuses meeting in Jerusalem with Swedish counterpart over PA recognition.

The State Dept. re-defines “unilateral” and won’t veto a resolution that does not explicitly ”prejudge” outcome of peace talks.

Two-thirds of the Palestinian Authority fears criticizing leader Mahmoud Abbas, according to the latest poll. Does he still represent the PA people?

More Articles from Yori Yanover
rain ATM

A Jerusalem woman is trying to hold on to her umbrella while withdrawing some cash at a Meah Shearim ATM, Sunday, March 9, 2014. The rain appeared out of the blue (which is how rain should), after a warm week that started to feel like summer. Well, it don’t feel like summer no more. Last […]

Rabbi Meir Mazuz (seen visiting a synagogue in Crown Heights, Brooklyn) declared in a public Internet psak that it is legal for a Jew to go up to temple Mount.

Needless to say, Shas, the Haredi Sefardi party, is not happy.

“The only difference between this world and the time of Meshiach is our bondage to the gentile kingdoms.”

Here’s the Israeli Navy boat INS Hanit arriving in Eilat on Saturday, March 8, 2014, after capturing the Klos C, which was carrying dozens of advanced Iranian-supplied weapons made in Syria and intended for Palestinian guerrillas in the Gaza Strip. Here’s Israeli Navy Commander Vice Admiral Ram Rotberg speaking with the INS Hanit soldiers in […]

Pat Condell has a new video out, so, sit back, have fun. By the way, Message to Offended Muslims should not be confused with Message to Off Handed Muslims. Also, I’d love to hear what he has to say about Haredim.

The description that came with this picture says: Israeli Prime Minister Benjamin Netanyahu speaks with American actor Bette Midler during an event at the house of Hollywood producer Arnon Milchan in Hollywood on March 6, 2014. But Bette Midler is not really an actor, she’s a singer who made movies for the LGBT community and […]

We will shut them up in the campuses, we will shut them up in the high schools, we will shut them up at the 92nd St. Y.

An Israeli female soldier (because they’re better at removing babies from their homes) evacuates a baby from a settlement in Judea and Samaria some time in the recent past. I’m thinking, if the baby was angry enough, couldn’t he evacuate in return, right there in her arms? Imagine the same picture, except with a settler […]

Printed from: http://www.jewishpress.com/news/breaking-news/palestinian-economy-in-downfall-born-by-reluctance-to-accept-israel/2012/08/18/

Scan this QR code to visit this page online: