 |
|
|
|
|
|
|
 |
| USAID Information:
External Links:
|
|
|
|
|
West Bank and Gaza
The Development Challenge: This past year held moments of anticipation and despair for the Palestinian people. Hopeful signs included the establishment of the post of Palestinian Authority (PA) Prime Minister, the implementation of significant PA financial management reforms and the agreement by the Israelis and Palestinians to accept the Road Map. These developments provided a sense of optimism that President Bush's June 24, 2002 vision of a democratic Palestinian state living side-by-side, in peace and security with Israel might soon be realized. Indeed, following the June 4 Aqaba Summit, the U.S. Government (USG) dispatched a senior diplomat to establish the U.S. Coordination and Monitoring Mission to coordinate with the parties on the ground as they fulfilled their Road Map obligations. For a time, both sides undertook limited actions consistent with the Road Map: Israel removed several illegal outposts and withdrew from Northern Gaza; and the PA took measures to exert security control over areas of the West Bank and Gaza (WBG), including negotiating a "hudna", or temporary ceasefire, with Palestinian militants.
 |
|
Please note: All documents are in pdf format |
The hudna was broken in mid-August and through the end of the reporting period the situation spiraled downhill, with a resumption of suicide bombings, the collapse of Prime Minister Abbas' government, and the stagnation of the PA reform process and consequent impediments to roadmap implementation. The realities of the past 12 months reflect a continued low-intensity conflict, which include a cycle of suicide bombings and Israeli incursions into populated Palestinian areas, followed by periods of perceived calm. The consequences of this on-going conflict are loss of life, severe damage to the economy, restrictions on the movement of Palestinians, and a difficult environment for USAID project implementation.
After several years of steep decline, the gross domestic product (GDP) is estimated to have risen between 3-5 percent in CY 2003. Unemployment remains at close to 30 percent of the workforce. More than 60 percent of Palestinians are living at or below the poverty line of two dollars a day. Some 40 percent of WBG inhabitants are food insecure and an additional 30 percent are on the verge of becoming so.
The Mission faces competing challenges. On the one hand, the immediate needs of the population are quite enormous, with the large amounts of donor emergency assistance viewed as a major reason that a humanitarian catastrophe has been averted in the West Bank and Gaza. On the other hand, the U.S. and others have emphasized the importance of PA political and economic reform that will contribute to the formation of a democratic, market-oriented, independent Palestinian state in the near future. Consequently, during the past three years, the Mission has reallocated more than $200 million to emergency response programs, while maintaining longer-term programs that promote the development of institution building, infrastructure and human capital.
The political uncertainty and accompanying instability increase the planning and implementation challenges facing the Mission. Within this context, the Mission has developed innovative approaches to ensure that adequate oversight is provided and that U.S. taxpayer dollars are serving the intended purposes and not being provided to terrorist organizations or their affiliates. Per a congressional mandate, the Inspector General is now supervising audits of all on-going projects. USAID engineering staff based in the West Bank and Gaza regularly visit project sites to review progress and identify problems. All local organizations that receive USAID funds, and their key officials, are vetted for terrorist affiliations. The Mission conducts regular project evaluations and funds research analysis to ensure that effective programming tools are utilized and that critical development needs are addressed.
The USAID Program: The goal of the USAID program is to promote stability in the West Bank and Gaza and in the region and to support the development of moderate Palestinian groups. To do this, the Mission implements six programs: Expanded Private Sector Economic Opportunities; Greater Access to and More Effective Use of Scarce Water Resources; Maintaining and Strengthening Key Institutions of a Modern, Inclusive Palestinian Democracy; Increased Access to Higher Education and Training; Improved and Sustained Performance in the Health Sector; and Improved Community Services.
Within the framework of these programs, USAID will use FY 2004 and FY 2005 resources to fund projects within four thematic areas, which respond both to emergency and longer term development needs. First, the Mission will continue to address the basic needs of the Palestinian population through activities that improve and sustain performance in the health care system, create jobs and long term employment on an emergency basis, and provide assistance to rebuild damaged infrastructure and roads. Second, the Mission will fund political and economic policy reforms, including the strengthening of key PA ministries and regulatory agencies, the legislature and the judiciary, and support for Palestinian NGOs that promote democratic values and moderation. The third thematic area is directed at revitalizing the private sector, which includes the repair of damaged small and medium businesses, work with small and medium enterprises on improved management processes, financial restructuring, and the development of appropriate private sector and investment laws and regulations. The fourth area is building essential water infrastructure, including the much-needed Gaza water carrier and desalination plant, and improving human capital through scholarships for study in the United States and the region, and short term training.
Other Program Elements: None.
Other Donors: Following a drastic decline in revenue collections (from $973 million in 2000 to around $280 million in 2001 and 2002), the PA has become heavily reliant on the donors for budgetary support. Approximately $1.2 billion ($532 million in 2001, $467 million in 2002 and $216 million in 2003) has been received in budgetary support during the past three years. USAID's principal donor partners are the European Union (EU), the United Nations family (UNRWA, UNDP, WFP, UNICEF, etc.), the World Bank, Germany, Japan, Italy, Norway, and the United Kingdom (UK). For 2004, the PA is seeking $1.2 billion in total donor contributions, of which $650 million is requested for budget support.
Donor coordination is highly developed, with several layers of mechanisms. The Ad Hoc Liaison Committee (AHLC) brings together capital level decision makers from key donor organizations. A Local Aid Coordinating Committee (LACC) includes all donors active in the Palestinian Territories. Several Task Forces operate under LACC auspices, including: a) Task Force on Project Implementation, which includes representatives from USAID, the EU, the United Nations and the World Bank and which works closely with Israeli Government officials to facilitate project implementation and field access for the delivery of all forms of assistance; and b) the Humanitarian and Emergency Policy Group (HEPG), which monitors the humanitarian crisis in the WBG and proposes policy approaches to the LACC. A host of sectoral working groups and emergency operation centers share information and facilitate the coordination of assistance on the ground. In 2002 principal donors established the Task Force on Palestinian Reform (TFPR) to monitor and promote progress on Palestinian institutional reform efforts and identify obstacles to reform. Operating in parallel with the AHLC and LACC, the TFPR has both capital-level and local level bodies, with the local level TFPR operating through seven Reform Support Groups.
Back to Top ^
|
