Monday, March 19, 2012

Pal. Financial Stability Challenged

The news in September was

A shortfall in donor aid, tough Israeli trade restrictions and diplomatic paralysis are jeopardizing Palestinian efforts to build a viable economy and strong institutions, the IMF and United Nations said in separate reports...

which resulted in this most recent report of the International Monetary Fund

...if donor countries continued to withhold promised aid, and if last year’s budget deficit of $1.1 billion were to recur this year, the PA would find itself with a budget shortfall of $500 million...[and] Palestinian officials foresee a $950 million total deficit and $330 million financial gap, still a vast sum which is generating deep concern.

The report says Palestinian “financial stability is now challenged.” It cited a shortfall of foreign aid and lack of development in the private sector.

Consider this previous report in last October:

Based on the track record of reforms and institution-building in the public finance and financial areas IMF staff considers that the PA is now able to conduct the sound economic policies expected of a future well-functioning Palestinian state.

The Palestinian economy, however, is facing increased risks, and growth in the West Bank has slowed down. This slowdown is due to continued fiscal retrenchment, declining aid, a consequent liquidity crisis, as well as slower easing of Israeli restrictions since mid-2010. Concerted actions by the PA, the Government of Israel, and donors are essential to stem the risks. The PA should maintain its solid record of accomplishment by accelerating key structural reforms. These reforms include implementing civil service reform, restoring the viability of the public pension system, continued improvement of the social safety net, full phasing out of electricity subsidies, and improving the legal and regulatory framework for businesses.

So, if you combine terror with unfaithful negotiations and an unsupported national economy you get..."Palestine", a "country" which really cannot exist except in the minds of inventitive nationalism theory and in the minds of European and progressive ideological forces which drive an anti-Israel message in the face of reality.


1 comment:

Anonymous said...

Israel is a democracy. give the Palestinians the vote.