UNITED STATES ECONOMIC ASSISTANCE TO THE PALESTINIAN PEOPLE

AND

THE ISRAELI CENTRIC US POLICY

By: Ziad Jaser Durra

18-May-2015

Supervision: Dr. Tariq Da'na

US AID to Palestine Page 2

United States Economic Assistance to The Palestinian People

and

The Israeli Centric US Policy

1. Introduction

Since the establishment of limited Palestinian self-rule in the West Bank and Gaza Strip in 1993,

the U.S. government has committed approximately $5 billion in bilateral assistance to the

Palestinians, who are among the world’s largest per capita recipients of international non-

military foreign aid. US assistance aims to ensure that the future state of Palestine will have the

capacity to govern, provide services, and ensure security and stability within its borders and for

its neighbors.1

The United States’ commitment to Israel’s security is a longstanding cornerstone of U.S.

policy in the Middle East.2 The U.S. Congress policy priorities of interest toward the Palestinian,

is “to prevent terrorism against Israel … and to foster stability, prosperity, and self-governance

in the West Bank” and to persuade Palestinians toward having peaceful coexistence with

Israel.3

US Aid to the Palestinian is subject to a host of vetting and oversight requirements and

legislative restrictions. Since 2011, The US Congress has taken several steps to restrict aid to the

Palestinian in response to initiatives aimed at increasing international recognition of Palestinian

statehood. In addition, the US Congress has expressed skepticism about providing U.S.

assistance to the Palestinian if the PA government was approved by Hamas.4

Aid to the Palestinian have always been tide-up to the political process, it increases or

decreases according to the political situation and progress in the peace negotiations. After the

Hamas Fatah split took place in June 2007 and the resumption of negotiation, the United States

boosted aid levels to the Palestinians in the West-Bank. Most of the assistance went in direct

support of the PA’s security, governance and reform programs. Since 2008, US aid to the

Palestinian (West Bank and Gaza Strip) has averaged around $400 million/year. The amount is

1 Jim Zanotti, “U.S. Foreign Aid to the Palestinians,” Congressional Research Service, (July, 2014),

https://www.fas.org/sgp/crs/mideast/RS22967.pdf. 2 US Department of State, “Congressional Budget Justification: Regional Perspectives,” Foreign Operations, P502-511, (2015),

http://www.state.gov/documents/organization/224070.pdf. 3 Zanotti, U.S. Foreign Aid.

4 Ibid.

US AID to Palestine Page 3

divided between U.S. Agency for International Development (USAID) and direct budgetary

assistance to the Palestinian Authority (PA). In addition since 2007 nonlethal assistance was

provided for PA security forces and the justice sector in the West Bank, which has averaged

around $100 Million/year.5

This research paper has examined the effectiveness of U.S. assistance to the Palestinian People and the economic impact it have on Palestinian lives. The research looked into US policy and the Zionist’s influence on the decision making process in Washington. The research showed that the “Israeli Centric” US policies were counterproductive. Israeli control over Palestinian lives, have reduced the effectiveness and hindered the impact of US Economic Aid to the Palestinian People.

The US and other Donors were not able to achieve their objectives of sustainable

economic growth, peace and security and the establishment of a viable Palestinian state. The unwillingness or inability of the US and International community to exert enough pressure on Israel to end its illegal occupation, have wasted great deal of Donor’s efforts and resources.

2. Geopolitical Overview

Over 750,000 Palestinians were displaced and disposed of their homes and land, after the

creation of the state of Israel in Palestine in 1948, with a further 400,000 Palestinians displaced

in 1967, creating the largest refugee population in the world.6 After the 1967 war, the Israeli

occupation forces issued several military orders to control Palestinian’s lives. The Israelis moved

gradually on annexing the Palestinian economy to the Israeli economy in a clear dependency

relationship where the Palestinians supply cheap unskilled labor to the Israeli labor market and

formed the main consumption market for Israeli goods.7

5 Ibid.

6 AMAN Coalition for Integrity and Accountability, “Palestine Reconstruction Survey,” AMAN, (2007),

http://www.integrityaction.org/sites/www.integrityaction.org/files/documents/files/Reconstruction%20Survey%20Palestine.pdf. 7 Ibid.

US AID to Palestine Page 4

The Palestinian struggle for self determination and liberation of their country was

intensified after the 1967 war. The United Nations General Assembly in 1974 recognized the

Palestinian Liberation Organization (PLO) as the representative of the Palestinian people.8 In

December 1987 the first Intifada erupted where Palestinians rebelled and began a collective

uprising against the Israeli occupation. Demonstrations, rock-throwing, strikes, a boycott of

Israeli goods and general unrest lasted for six years. The Israelis responded with harsher

measures. Travel restrictions were imposed, schools and universities were closed, mass arrests

took place and Israeli soldiers were shooting and arresting Palestinian all over the West-Bank

and Gaza.9

In 1993 an interim peace agreement between the Palestinians and the Israelis was

signed in Oslo, Norway. The main outcome of the Oslo agreements was the establishment of a

Palestinian National Authority (PNA) in some parts of the West Bank and Gaza. The Palestinian

efforts to establish an independent state, which was supposed to be declared in 1999 based on

the Oslo Accords, was never materialized.10

Geography and Population: The Palestinian Territories cover an area of 6249 square

kilometers. It is currently two separate entities (The West-Bank and Gaza Strip) without any

geographical connection. Movement between Gaza and West-Bank is firmly controlled by the

Israeli government, who may issue special permits to some Palestinian based on the political

situation and Israeli interests.

The Palestinian population reached up to 4.550 million inhabitants, 2.79 million live in

the West Bank and approximately 1.76 million live in the Gaza Strip (PCBS, 2014).11 Of these

inhabitants, 39.7% are less than 14 years old. The population growth rate is very high, reaching

up to 2.9% per year (PCBS, 2014).12 In addition to the Palestinian living in West-Bank and Gaza,

there are more than 3.5 million Palestinian refugees registered with the United Nations Relief

and Works Agency (UNRWA). Of these refugees, 33% live in 59 UNRWA refugee camps and 67%

are scattered throughout various countries.13

3. United States Policies Toward the Palestinian

America’s support for Israel is unique, for the past several decades, the centerpiece of U.S.

Middle East policy has been its relationship with Israel. The unwavering U.S. support for Israel

8 Ibid.

9 Ibid

10 Ibid

11 Palestinian Central Bureau of Statistics (PCBS), http://www.pcbs.gov.ps/site/lang__en/881/default.aspx#Population, Last

visited on 18-May-2015. 12

Ibid. 13

AMAN, Palestine Reconstruction Survey.

US AID to Palestine Page 5

has inflamed Arab and Islamic opinion and jeopardized U.S. security in the region. The United

States has “been willing to set aside its own security in order to advance the interests of

Israel.”14

3.1. US Support to the Israeli Occupation

The United State has given Israel broad latitude in dealing with the occupied Palestinian

territories, even when its actions were at conflicts with stated U.S. policy. Since 1982, the

United States has vetoed 32 United Nations Security Council resolutions that were critical of

Israeli actions toward the Palestinian. The number is greater than the combined total of vetoes

cast by all the other Security Council members.15

The United States helps Israel in wartimes to maintain its occupation. United States gives Israel

access to intelligence that it denies its NATO allies and has turned a blind eye towards Israel’s

acquisition of nuclear weapons.16 The US takes Israel side during peace negotiation. The United

States usually coordinate its positions closely with Israel and consistently backed the Israeli

approach to the negotiations, “far too often, we functioned . . . as Israel’s lawyer.”17

3.2. US Aid to Israel

The US supports maintaining Israel qualitative military edge (QME). U.S. assistance helps to

ensure that Israel maintains its QME over potential regional threats. The U.S. has committed

itself to ensuring that Israel is able to defend itself against any threats, thereby preventing a

shift in the region’s military balance that could endanger Israeli interests.18

Since the Arab-Israeli War in October 1973, The US has provided Israel with a high level

of support exceeding amounts provided to any other state. Israel has been the” largest annual

recipient of direct U.S. economic and military assistance since 1976 and the largest total

recipient since World War II.” Total direct U.S. aid to Israel amounts to well over $140 billion in

2003, according to US Congress.19

Israel receives about $3 billion in direct foreign assistance each year, which is roughly

one‐fifth of America’s foreign aid budget. In per capita terms, the United States gives each

Israeli a direct subsidy worth about $500 per year.20 According to Haaretz, the United States has

14

John J Mearsheimer and Stephen M. Walt, “The Israeli Lobby and US Foreign Policy,” London Review of Books Vol. 28, No. 6, (March, 2006), http://www.lrb.co.uk/v28/n06/john-mearsheimer/the-israel-lobby. 15

Ibid. 16

Ibid. 17

Ibid 18

US Department of State, Congressional Budget. 19

Mearsheimer and Walt, The Israeli Lobby. 20

Ibid

US AID to Palestine Page 6

provided Israel with $233.7 billion in aid since the creation of Israel in 1948 through the end of

2013. 21

Usually US aid recipients get their money in quarterly installments, but Israel earns extra

interest by receiving its entire appropriation at the beginning of each fiscal year. Israel is the

only recipient that does not have to account for how US aid is spent. This makes it virtually

impossible to avert the money from being used for unauthorized purposes that the US opposes

such building Israeli settlements in the occupied West Bank.22

3.3. No Legal or Moral Grounds for Supporting Israel

It is difficult to justify U.S. support for Israel on the grounds that it’s past conduct was morally

superior. Israel’s past and present conduct offers no moral basis for privileging it over the

Palestinians. Israel’s conduct towards Palestinian has often been brutal, contradicting any claim

to morally superior conduct by Israel. Early Zionists were far from compassionate towards the

Palestinian. Before establishment of Israel in 1948, the Zionists armed militias responded

vigorously with deadly force against the Palestinian resistance to the Zionists attempts to create

a Jewish state on Palestinian lands. The creation of Israel in 1947‐48 involved explicit acts of

ethnic cleansing by the Zionists militia, including executions, massacres, and rapes by Jews to

Palestinian women.23

During the First Intifada the Israeli forces distributed truncheons to its troops and

encouraged them to break the bones of Palestinian protestors. The Swedish “Save the

Children” organization estimated that “23,600 to 29,900 children required medical treatment

for their beating injuries in the first two years of the intifada,” with nearly one‐third sustaining

broken bones. Nearly one‐third of the beaten children were aged ten and under.24

Israel’s response to the Second Intifada (2000‐2005) has been even more brutal, The

Israeli Newspaper, Haaretz, declared that “the IDF … is turning into a killing machine whose

efficiency is awe‐inspiring, yet shocking.”25 The Israeli forces fired one million bullets in the first

days of the uprising. They have killed 3.4 Palestinians for every Israeli lost, and the majority of

Palestinian killed have been innocent bystanders.26

21

Ora Coren and Nadan Feldman, “U.S. aid to Israel totals $233.7b over six decades,” Haaretz, (March 2013),

http://www.haaretz.com/business/u-s-aid-to-israel-totals-233-7b-over-six-decades.premium-1.510592. 22

Mearsheimer and Walt, The Israeli Lobby. 23

Ibid. 24

Ibid. 25

Haaretz Opinion, “Unbridled force,” Haaretz, (March 2003), http://www.haaretz.com/print-edition/opinion/unbridled-force-1.16116 26

Mearsheimer and Walt, The Israeli Lobby.

US AID to Palestine Page 7

3.4. Zionists influence on US Decision Making Process and Policies

The United States has a divided government that offers many ways to influence the policy

process. As a result, interest groups can shape policy in many different ways, including lobbying

elected officials and members of the executive branch, making financial campaign

contributions, voting in elections and shaping public opinion. The Israel Lobby’s power flows

from its unmatched ability to play interest group politics. It is extraordinary effective in utilizing

Jews and their Christian allies to bend U.S. policy towards Israel.27

One reason for the Zionist Lobby’s success with Congress is the Pro‐Israel congressional

staffers, who constitute an integral part of the Zionist lobbying process. These staff who are in a

position to make the decision for senators are a source of many pro Israeli, anti Palestinian

decisions made in Congress. In addition, some key members of the US Congress are “Christian

Zionists” like Dick Armey, who said in September 2002 that “My No. 1 priority in foreign policy

is to protect Israel.”28 On the other hand, the Zionists’ Lobbying groups have ability to reward

legislators and congressional candidates who support their agenda and punish those who

challenge it. This has made the Zionist lobby very effective in pushing Israeli interests in US

policy.29

3.5. The US Inability or Unwillingness to Enforce Pro Palestinian Policies

The overall thrust of U.S. policy toward the Palestinian is due to U.S. domestic politics, and the

activities of the “Israel Lobby.” No lobby has managed to divert U.S. foreign policy from what

the American national interest, like the “Israel Lobby.” The Lobby was able to convince

Americans that U.S. and Israeli interests are essentially identical.30

During the second Intifada, the Mitchell Report (named after Chairman George J.

Mitchell, former member and Majority Leader for the US Senate), called for an immediate

cease fire and a freeze on Jewish settlements.31 In 2002, the UN Security Council passed the

U.S-drafted Resolution 1397. The resolution referred to a Palestinian state for the first time,

which was to exist side by side with Israel. US President George W. Bush said the root cause of

the conflict was Israel’s illegal occupation of Palestinian territories, and called on Israel to stop

all settlement activity in line with the Mitchell recommendations and international law and to

halt incursions into Palestinian areas.32

In a statement by Obama about the Palestinian people in 2011, the US president

declared “the United States of America was founded on the belief that people should govern

27

Ibid. 28

Ibid 29

Ibid 30

Ibid. 31

AMAN, Palestine Reconstruction Survey. 32

Ibid.

US AID to Palestine Page 8

themselves.”33 The American people should stand with the Palestinian aspiration for self

determination, “we cannot hesitate to stand squarely on the side of those who are reaching for

their rights.”34 On the other hand, the US House of Representatives approved a resolution that

warned the Palestinian not to declare a Palestinian state or the US would relinquish its financial

aid for the Palestinian People.35

4. US Assistance to the Palestinian People

The US supports issues that contribute to regional stability in Middle-East (ME) such as,

“equitable economic growth and job creation; a comprehensive Middle-East peace; human

rights-respecting and capable security institutions; and inclusive, accountable, and responsive

governance.”36 U.S. foreign assistance to the Palestinian people is part of the Middle-East peace

process, it links to resumed political negotiations with the Israelis.37 The United States is the

leading provider of bilateral development assistance to the Palestinians, having provided about

$5.0 billion since 1994. In addition, the United States is the largest single-state donor to the

U.N. Relief and Works Agency for Palestine Refugees (UNRWA). The US donations to UNRWA

since its initiation in 1950 have totaled more than $4.9 billion.38

33

The White House, Remarks by the President on the Middle East and North Africa,” Office of the Press Secretary, (May 2011), https://www.whitehouse.gov/the-press-office/2011/05/19/remarks-president-middle-east-and-north-africa. 34

Ibid. 35

AMAN, Palestine Reconstruction Survey. 36

US Department of State, Congressional Budget. 37

US ForeignAssistance.gov, “West-bank and Gaza,” http://www.foreignassistance.gov/web/OU.aspx?FY=2015&OUID=389&AgencyID=0&FromRGA=true&budTab=tab_Bud_Spent, Last visited May-18-2015. 38

Zanotti, U.S. Foreign Aid.

US AID to Palestine Page 9

Figure 1 Average US Aid to Palestinian in millions (1993-2014), according to Presidency39

Figure 2 Total US Aid to Palestinian in Million (1993-2014), according to US Presidency40

4.1. Targeted Sectors

39

Date Source, CRS Reports for Congress 2005-2014. 40

Data Source, Clyde Mark, CRS Reports for Congress 2005-2014

$92.7

$346.0

$62.8

$192.1

$432.8

$-

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

$350.0

$400.0

$450.0

$500.0

Arafat Abbass Clinton Bush Obama

Avg. US Aid /Year according to Presidency

Arafat

Abbass

Clinton

Bush

Obama

$439.8

$1,536.6 $2,596.5

Total US Aid per Presidency in Millions

Total Aid Clinton

Total Aid Bush

Total Aid Obama

US AID to Palestine Page 10

USAID development Aid programs to the Palestinian, include “democracy, governance and

human rights, education, youth and social services, health, economic development,

infrastructure and water, peace and security and humanitarian assistance.41

Democracy, Governance and Human Rights: USAID interventions in West-bank, totaled $157.8 M (2009- 2014), are designed to bolster confidence in the PA and contribute to continued stability in the region. USAID programs have improved the “governmental service delivery, civic engagement, rule of law, and democratic practices.” The US support PA objectives through its assistance programs to improve governance structures, strengthen the Palestinian judicial system, develop rule of law and human rights processes, encourage civil society participation in public decision-making, and ensure a more transparent dialogue between the government and the citizens of a future Palestinian state through support to independent Palestinian media.42

Economic Development, Water and Infrastructure: The development of a sustainable, private-sector driven economy is fundamental to the long-term viability of the Palestinians’ economy. USAID programs complement other donors’ efforts, mainly the United Kingdom’s Department for International Development, the World Bank, and the European Commission.43 USAID assistance that totaled $382.9 Million (2009-2014), has provided technical assistance and access to improved technologies and management skills. USAID implemented trade facilitation projects to improve the movement of people and cargo through crossing points. In addition, it worked on reducing regulatory constraints and developing partnerships between the private sector and the Palestinian Authority.44

USAID provides assistance to Palestinian enterprises to create jobs and help them pursue opportunities in domestic and regional markets. USAID have targeted sectors which have been identified as having the greatest potential to increase exports and scale up employment. U.S. funding in 2015, aims at improving private-sector firms in agriculture and agri-business, stone and marble production, information technology and tourism, by helping to update production processes to meet international market standards and increasing the availability of investment capital.45 In addition, the U.S. foreign assistance program supports the goals of the Initiative for the Palestinian Economy to transform the Palestinian economy through large-scale private sector investment in eight key sectors.46

USAID has been “one of the largest donors” in the infrastructure sector. USAID implemented “construction and rehabilitation of water systems and distribution networks, roads, sanitation systems, clinics, schools and other community facilities projects.”47 To support economic growth initiatives, USAID assist in the development of the Palestinian transportation infrastructure. Based on PA infrastructure priorities, USAID implemented road projects providing safer travel routes and connecting urban centers, economic zones, commercial

41

US Foreign Assistance. 42

US Department of State, Congressional Budget. 43

Ibid. 44

USAID West-bank and Gaza, “Our Work,” http://www.usaid.gov/west-bank-and-gaza/our-work, last visited May-18-2015. 45

US Department of State, Congressional Budget. 46

US Foreign Assistance. 47

USAID

US AID to Palestine Page 11

routes, and residential neighborhoods. U.S. assistance in 2015, will improve transportation infrastructure by renovating high priority road networks to ease the movement of goods and services throughout the West Bank, develop trade routes, and improve access to basic services.48

Education, Youth and Social Services: The US has spent $1,270.4 Million (2009-2014) in the developing the Palestinian education services and supporting youth. USAID programs aims at promoting equitable, effective, accountable, and sustainable formal and non-formal education systems. USAID supports the development of quality education services to the Palestinian, through programs that “improve teaching methodologies, introduce contemporary approaches to teaching and learning strategies and expand the impact of early childhood programming.” USAID supports Palestinian youth through “increased access to educational opportunities and community-based youth programs” to educate and train them.49

48

US Department of State, Congressional Budget. 49

USAID

US AID to Palestine Page 12

Health: The US has spent $312.7 million (2009-2014) to improve the Palestinian health system. Through expansion of basic health services, including family planning; strengthening national health systems, USAID programs contributes to the improvements of the Palestinian people health, especially women, children and other vulnerable populations in Palestine.50 The Palestinian Ministry of Health (MOH) has demonstrated a strong commitment to improving the health of Palestinians in the West Bank and Gaza. With the assistance from the international Donor community, the MOH is in the process of upgrading the health system to improve the scope, sustainability, and quality of the services available.

USAID supports the development of quality health services through efforts aims at

increasing the Palestinian health system capability to meet the health needs of Palestinian people. USAID works on strengthening the Palestinian health care systems, through the provision of medical equipment and expanding access to high-quality medical facilities.51 U.S. programs for 2015, will work on strengthening service delivery in Palestinian public and non-governmental organization health facilities, improve the prevention and treatment of priority public health problems. In addition, USAID plans to build the capacity of MOH to manage better the healthcare system.52 Peace and Security: USAID programs in peace building works on helping nations establish the

conditions and capacity for achieving peace, security, and stability; and for responding

effectively against arising threats to national or international security and stability.53 As part of

a congressionally mandated effort to support people-to-people reconciliation, USAID provides

fund that totaled $21.7 M (2009-2014), to support Conflict Management and Mitigation (CMM)

activities that bring together “individuals of different ethnic, religious or political backgrounds

from areas of conflict to address the root causes of tension and instability.”54

Humanitarian Assistance: The U.S. government provided assistance, which totaled $238.2 (2009-2014), to the most vulnerable populations in the West Bank and Gaza. While there are some humanitarian assistance needs in the West Bank, the majority of US humanitarian assistance went to Gaza, since a large number of the population there, remains in dire need of humanitarian and food assistance. U.S. programs help ensure that these critical humanitarian assistance needs are met and that nutritious food is provided to vulnerable Palestinian families. 55

50

US Foreign Assistance. 51

USAID 52

US Department of State, Congressional Budget. 53

US Foreign Assistance. 54

USAID 55

US Department of State, Congressional Budget 2015.

US AID to Palestine Page 13

Figure 3 US Aid in Millions pre Sector (2009-2014).56

4.2. US Aid to the Palestinian Authority

The US support for the Palestinian state-building initiative through U.S. foreign assistance.

USAID support Palestinian institution capacity building efforts to establish a future state that

have “the capacity to govern, provide services, and ensure security and stability within its

borders and also with its neighbors.”57 USAID’s developmental efforts aim at helping “to build a

more democratic, stable, and secure region, benefiting Palestinians, Israelis and Americans.”58

The U.S. government’s foreign assistance program supports the development of

Palestinian Authority (PA) institutional capacity to deliver quality services; improves security

conditions on the ground while reinforcing Palestinian respect for the rule of law; fosters the

conditions for a strong private-sector driven economy; aids the development of quality health

and education services; provides critical infrastructure programming to improve water,

sanitation, and road networks; meets humanitarian assistance needs; and provides direct

budget support to the PA to ensure its ongoing fiscal viability.59

56

Data Source: US Foreign Assistance 57

US Foreign Assistance. 58

USAID. 59

US Department of State, Congressional Budget 2015.

$27.4

$83.0 $81.6

$30.5 $40.3 $49.9

$-

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

$350.0

$400.0

$450.0

2009 2010 2011 2012 2013 2014

US AID 2009-2014 per Sector

Economic Development Health

Humanitarian Assistance Education & Social Services

US AID to Palestine Page 14

USAID worked to enhance the Palestinian Authority’s (PA) ability to serve effectively as a

governing body, to run a future Palestinian state and meet Palestinian needs. USAID supported

the development of Palestinian institutions to promote and strengthen democracy in

Palestine.60 In 2015, USAID plans to support family courts, the High Judicial Council, Ministry of

Justice, and the Palestinian Judicial Institute and some law schools. USAID assists the

Palestinian civil society organizations to “improve Palestinian society’s ability to monitor the

performance of the PA and to participate in public decision making processes.” In addition,

USAID will assist the Palestinian municipalities to improve their capacity and service delivery.61

4.2.1. Direct Budget Support to the Palestinian Authority ($226.1 million for 2015)

Assistance to the PA takes the form of in-kind assistance (training, technical assistance,

equipment, etc.) rather than cash. According to the US Congressional budget justification for

2015, U.S. governments provides direct budget support to the PA to ensure its ongoing fiscal

viability and contributes to the overall stability and security of the region.62 During the final

year of President George W. Bush, he issued waivers providing $300 million in direct assistance

to the PA. President Barack Obama has followed the precedent by authorizing a total of $898

million in direct budgetary assistance to the PA until 2014.63

The U.S. government anticipates a continuing need for direct budget assistance to the PA

for 2015. This support is expected to follow the existing model of paying down PA debt to

eligible and vetted creditors or suppliers of consumer commodities purchased by the PA. US

budget support to the PA is critical in stabilizing the PA fiscal environment. The PA leverages

additional financial support from other international donors and Arabic countries to support

budget deficits.64

4.2.2. US Aid to the PA Security Forces

In April 2003, to help the PA meet their Roadmap obligations and pave the way for a two-state

solution, the Secretary of State established the United States Security Coordinator (USSC)

office. The office of the USSC has a core staff of approximately 45 personnel as of March 2010.

Headquartered in Jerusalem, the USSC includes up to 16 U.S. military personnel and several U.S.

civilians. The head of the USSC, a lieutenant general in the U.S. Army, also serves as the deputy

60

USAID 61

US Department of State, Congressional Budget 2015. 62

US Foreign Assistance. 63

Zanotti, U.S. Foreign Aid. 64

US Department of State, Congressional Budget 2015.

US AID to Palestine Page 15

for security issues to the U.S. Special Envoy for Middle East Peace.65 The USSU office remained

without dedicated budget until 2007.66 Since 2007 to 2014 the US government, through USSC

and INL has allocated over $785.4 million to support the enhancement of Palestinian law

enforcement and security forces.67

Since the establishment of the PA in 1993, the United States provided some non-lethal

equipment and a small amount of funding for salaries to help the newly established PA security

forces improve their professionalism and combat terrorism.68 Since 2007, the Palestinian

Authority Security Forces (PASF) continues to successfully promote and maintain security in the

West Bank only, resulting “in a safer and more secure environment and improving the lives of

both Palestinians and Israelis.” The U.S. continues to focus on reforming the Palestinian

Authority (PA) security and justice sectors, and sustaining and maintaining the capabilities that

the security forces have developed through US assistance.69

Since 2007, the US provided training, technical assistance to PA Security forces to

improve its effectiveness. In 2015, the US plans to continue to “provide training, technical

assistance, non-lethal equipment, and infrastructure support to transform” the Palestinian

security forces and increase their professionalism. To ensure that the PASF are better equipped

and capable of maintaining public security, fighting serious crime and terrorism, the US will

continue to enhance the skills and capacity of the Palestinian National Security Force (NSF),

Palestinian Civil Police (PCP), Presidential Guard (PG), the Military Justice Commission, the

Preventive Security Organization (PSO), and the Palestinian Civil Defense (CD). In addition,

funds will be used to enhance PASF communications and information systems “interoperability

to improve pan-PASF mission command capability.”70

US financial resources will be used to sustain and improve the PA security forces’ tactical

and technical skills and to support specialized and advanced training and field exercises in

Jordan and the West-Bank. The US will help the PA Ministry of Interior and security forces to

transfer tactical training from Jordan to the West Bank. In addition, the US will help the PA to

assume responsibility of the training, by developing training curriculum, training aids,

instructors, and other training tools.71

65

United States Government Accountability Office, “Palestinian Authority,” (US House of Representatives, GAO-10-505, May, 2010), http://www.gao.gov/new.items/d10505.pdf. 66

US Department of State, Congressional Budget 2015. 67

US Foreign Assistance. 68

US GAO, Palestinian Authority. 69

US Department of State, Congressional Budget 2015. 70

Ibid. 71

Ibid.

US AID to Palestine Page 16

Figure 4 US AID to the Palestinian in Millions USD, according to sectors from 2009-2014.72

4.3. US Aid Restrictions and Vetting Requirements The work of USAID in the West Bank and Gaza is governed by many rules and regulations, usually authorized by the US congress. USAID’s programs are subject to a specialized vetting process73 and to yearly audits intended to ensure that funds are not diverted to organizations or individuals who are classified as terrorist by the U.S. government. Vetting process has become more rigorous since 2008, presumably in response to allegations by Israeli watch groups, which claimed that U.S. economic assistance was indirectly supporting Palestinian “terrorist.”74

Statement issued by USAID in 2009 stated that “USAID West Bank/Gaza program possess the most comprehensive vetting system for foreign assistance throughout the U.S. Government.” All NGOs applying for grants from USAID projects are required to certify, before award of the grant, that they will not provide material support to terrorists. Before awarding grants to local NGOs or paying a contract to Palestinian suppliers, USAID Mission checks the organization and its principal officers, directors and other key personnel through law

72

Date Source: Data Source: US Foreign Assistance and CRS report 2014. 73

US Public Law 113-76 74

Zanotti, U.S. Foreign Aid.

$1.8 $2.3 $2.1 $0.6 $8.7 $6.2

$34.5 $36.3 $30.9

$12.4 $20.9 $22.6

$-

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

$180.0

$200.0

2009 2010 2011 2012 2013 2014

US AID 2009-2014 per Sector

Peace & Security Democracy, Governance & Human Rights

Security Forces Program Management

US AID to Palestine Page 17

enforcement and intelligence community systems. In addition, all beneficiaries of USAID training of more than 5 days have to be vetted to be eligible to receive the training.75

USAID have certain preferences concerning purchasing equipment and employment of

experts, where in most cases, USAID requires purchasing American made equipment whenever possible, even if the cost is higher. The vetting process and purchasing restriction have resulted in delays and reducing programs’ efficiency and effectiveness. Cash Assistance to the PA: US law specifically prohibits cash assistance to the PA. USAID programs are prohibited to provide cash assistance to the Palestinian Authority (PA), including PA’s staff, officials, ministries and agencies.76

According to foreign operations appropriations laws, Congress approved funds for the Palestinian cannot be given directly to the PA unless the President submits a waiver to Congress stating that in doing so is in the interest of US national security. In addition, the Secretary of State should certifies that “… the Palestinian Authority is acting to counter incitement of violence against Israelis and is supporting activities aimed at promoting peace, coexistence, and security cooperation with Israel.”77

4.4. USAID Implementing Mechanisms USAID does not implement technical assistance projects directly; rather they do the implementation through USAID implementation partners. USAID utilize the following USAID managed mechanisms to achieve its strategic objectives: Contract Agreements: Contracts are made with implementing contractors to provide goods and services. Commercial for profit companies (businesses for acquisition and assistance); such as Chemonics International Inc., DAI Washington and TETRA TECH are selected in a competitive process to implement USAID programs. USAID signs with qualified Contractors, who are responsive to USAID desires, different type of contract agreements based on activities to be implemented. This type of mechanism is utilized when the nature of the program requires strong technical skills, substantial USAID involvement, high accountability and USAID design input.78 Cooperative Agreements: When USAID involvement is needed, they sign this type of agreements with selected NGOs such as CHF, Save the Children, CRS and Mercy Corps to support the recipient’s own program. This type of mechanism allow substantial involvement for USAID and may improve results and increase transfer of knowledge to NGO, leverages recipient funding for the project and supports NGO innovation while implementation.79

75

Ibid. 76

Ibid. 77

Ibid. 78

USAID. “Implementing Mechanisms,” (M/MPBP/POL, Sept 2008). http://www.usaid.gov/sites/default/files/documents/1868/200sbo.pdf. 79

Ibid.

US AID to Palestine Page 18

Grants Agreement: USAID award grants to NGOs for purpose is to support the grantee’s own program and whenever substantial USAID involvement is not needed. Through this mechanism USAID does not provide or need to oversee or manage the project implementation, which particularly useful when USAID lacks field presence.80 Program Management, Monitoring and Evaluation: USAID provide the general management support required to ensure achievements of U.S. foreign assistance objectives, by facilitating program management, monitoring and evaluation, and accounting and tracking for costs. USAID closely monitor programs implementation through their local and US government staff and technical teams. USAID staff provides oversight and monitoring of USAID-funded projects, to ensure effective project management and the achievement of project goals. USAID staff conduct projects field visits, meet on regular bases with implementing partners and require substantial degree of progress reports and performance data.81

USAID regularly perform programs’ midterm performance evaluations to determine the

progress made towards achieving expected results and objectives, to refine the implementation of existing projects and shape future programming. USAID M&E team assess the accuracy of project progress reports and performance data. They confirm the reliability and effectiveness of implementing partners and provide internal controls related to performance monitoring and reporting.82

4.5. Aid Effectiveness

Even vaster amounts of international funding continue to be disbursed to the Palestinians, their

living conditions and lives under Israeli occupation continue to deteriorate. The prospect of

seeing the emergence of a viable independent state is also becoming unreachable. 83

It is difficult to evaluate how effective the technical assistance provided to the

Palestinian people is. USAID mission for Palestine provides needed oversight to make sure that

all programs achieve their intended results. I believe to a certain degree, USAID programs have

achieved their intermediate results of institution building, and alleviation of the suffering of the

Palestinian people. Based on USAID requirements, implementing organizations have to involve

Palestinian stakeholder in the programs’ design, development and implementation, which have

positively impacted the program’s outcomes and increased its outreach. How much the direct

beneficiaries from the technical assistance have benefited is very dependable on the activity,

targeted beneficiaries and the USAID implementing partners.84

80

Ibid. 81

Ibid. 82

Ibid. 83

Anne Le More, “Preface: International Assistance to the Palestinian after Oslo: Political guilt, wasted money,” (London: Routledge, 2008). 84

Based on my experience working on USAID Programs (1999-2013).

US AID to Palestine Page 19

Figure 5- US AID yearly expenditures in Million (2009-2014) and political events.85

Aid have subsidized Israeli occupation and colonization of the Palestinian land, where

Aid provided to Palestinian freed Israel from the burden and responsibility for the occupation

and destruction of Palestinian livelihood, economy and infrastructure. Israel continues to enjoy

a “deluxe occupation,” whereby it exerts total military domination over the Palestinians under

its control without taking any responsibility for meeting their basic human needs. Rather than

holding Israel accountable for its actions and abuses of human rights and international law,

donors have generally been willing to accommodate those abuses. The role that aid has played

in propping up Israel’s occupation were questioned by critics who accused donors of belonging

occupation by reducing any sense of urgency for a political resolution to the Palestinian

dilemma.86

Taghdisi-Rad reports that a great deal of aid to Palestinians contributes to the Israeli

economy.87 Some International organization working to help the Palestinian people have

tailored some of their aid programs to benefit Israel. Pro Israeli International staff has

channeled some of the projects money to Israeli institutions, companies, individuals and even

85

Data Source: CRS report 86

Samer Abdelnour, “Unmasking Aid After the Palestine Papers,” Shabaka, (March 2011), http://al-shabaka.org/commentaries/unmasking-aid-after-the-palestine-papers/. 87

Mandy Turner and Omar Shweiki, “Decolonizing Palestinian Political Economy: De-development and Beyond,” (London: Palgrave Macmillan, 2014), p13-32, https://books.google.co.il/books?id=dmqpBQAAQBAJ&pg=PA29&lpg=PA29&dq=decolonizing+the+palestinian+economy&source=bl&ots=4h54Zro454&sig=es_ui5QZ2GA9QWnvaIwMY9BbD8I&hl=en&sa=X&ei=nE9YVajPFMblUcrVgZgI#v=onepage&q=decolonizing%20the%20palestinian%20economy&f=false

$222.0

$527.0

$472.6

$546.0

$179.0

$536.3

$242.0

$-

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

2008 Hamas seizes control

of Gaza

2009 President

Obama

2010 Negations continues

2011 Fatah and Hamas

sign a reconciliation

accord

2012 Israel biggest attacks

on Gaza

2013 Israeli and

Palestinian negotiators

agree to new peace talks

2014 Palestinian

new reconciliation

agreement

US Aid (West Bank and Gaza) All Agencies

US AID to Palestine Page 20

settlers who were contracted to implement projects activities on the Israeli side. Large amounts

of money, in comparison to what was paid to Palestinian for services, were paid for Israelis for

their services. In addition to contracting pro Israeli Jews, International organization has

contracted an Israeli American to work on a USAID funded project to help the people in Gaza.88

Aid to the Palestinian people has functioned not as a catalyst for freedom and liberty

but as a substitute for political resolution. Financial aid became an excuse for the absence of a

political process to resolve the underlying causes of conflict and remove the need for aid.

Supporting the ‘peace process’ had become the dominant immovable paradigm of aid provided

to the Palestinian. This meant an ever-greater focus on providing short-term emergency aid to

alleviate Palestinian suffering, without removing the causes for the long-lasting hardship they

live under.89

International aid has not brought peace, development, or security for the Palestinian

people.90 Nothing tangible has been done by the US or international donors to influence a

change in Israeli policies.91 Palestinians must move away from the current context of donor

driven development process, toward a paradigm that understands development as a mean to

gaining freedom, control and self-determination. There must be a Palestinian economic vision

and strategy that aims at supporting the Palestinian struggle for liberation from the Israeli

occupation.92

5. AID Impact on Palestinian Economy

The Palestinian economy is quite small with GDP around $12.5 Billion and per capita GDP $2.99 Billion in 2013.93 Over the years the economy suffered from slowdown in growth, falling incomes, low productivity and low investment. There is high unemployment, particularly in Gaza and among youth, college graduates and women. There is considerable poverty and people suffer from food insecurity. The industrial and agriculture productive sectors had been stagnating for a long time. The donor funded public sector boom had proved short-lived. Many Palestinians had no choice but to seek jobs inside Israel, abroad or even in Israeli settlements in the West-Bank.94

88

Based on observations and documents (2007-2011). 89

More, International Assistance to the Palestinian. 90

Ali Abunimah, “How aid hurt Palestine,” The Electronic Intifada, (October 2009), http://electronicintifada.net/content/book-review-how-aid-hurt-palestine/3562. 91

More, International Assistance to the Palestinian. 92

Alaa Tartir, Sam Bahour and Samer Abdelnour, “Defeating Dependency, Creating a Resistance Economy,” Shabaka, (February 2012), http://al-shabaka.org/wp-content/uploads/2012/02/defeating-dependency-creating-resistance-economy.pdf. 93

PCBS, http://www.pcbs.gov.ps/Portals/_Rainbow/Documents/e-napcapitacurr-1994-2013.htm, last visited 18-May-2015. 94

United Nations, “Seminar on Assistance to the Palestinian People,” Division for Palestinian Rights, ( July 2014), http://unispal.un.org/unispal.nsf/361eea1cc08301c485256cf600606959/d6a17e0116af905485257d540051ddfc?OpenDocument, last visited 18-May-2015.

US AID to Palestine Page 21

A quarter of the Palestinian population lives in poverty, with the rate in Gaza twice as high as that in the West Bank. In the West Bank, the Israeli military activities have a damaging effect on economic activities.95 The PA, burdened with severe budget shortages and a lack of sufficient donor funding, is unable to provide for the needs of vulnerable families. Many Palestinian families are dependent for their survival on the support of international organizations. These poor families, with hardly any income have limited educational and economic opportunities.96

The unemployment rate for the West Bank and Gaza has risen dramatically from 12 percent in 1999 to 25 percent in 2015 (38 percent in Gaza). PA tax revenue has increased due to improved collection and administrative reforms, but is still below budget targets. Palestinian enterprises, Micro and small-sized, which account for more than 90 percent of existing Palestinian businesses, face common challenges in competing with regional markets.97

Gaps in health services provided to the Palestinian, threaten the socioeconomic

development. These service gaps, particularly the health system’s capacity to manage the

chronic diseases have caused great deal of hardships. Thousands of Palestinian patients

continue to go to health care facilities in Israel, Jordan, and Egypt to receive the care they need.

This make the treatment needed less accessible for patients and extremely expensive for the

PA budget.98

Obstacles to Economic Growth The 1994 Paris Protocol signed with the Israeli government under International pressure, have limited the Palestinian Authority’s ability to revive the economy. The Protocol detailing economic relations between Israel and Palestine have provided the PA with a policy space less than what is available to local authorities in many countries. The protocol has made the Palestinian markets captive to Israeli products, resulting in an exposed and vulnerable Palestinian economy. Palestinian policymakers do not have power over the basic macroeconomic tools to manage the Palestinian economy.99

The Israeli blockade of Gaza, the closure of tunnels through which legal and illegal goods flow, successive wars and reductions in international donor support to Gaza, have resulted in the deterioration of the humanitarian situation in Gaza. In addition, the overall declines in economic activity, high unemployment and increases in the consumer price index have impacted the humanitarian situation in Gaza. Recent data shows 19 percent of the people in the West Bank and 57 percent of the people in Gaza suffer from food insecurity.100

95

World Bank, “Palestine Economic Monitoring Report,” http://www.worldbank.org/content/dam/Worldbank/Feature%20Story/mena/WBandGaza/wbg-docs/wbg-ahlc-report-2014-eng.pdf. 96

US Department of State, Congressional Budget 2015. 97

Ibid. 98

Ibid. 99

United Nations, Assistance to the Palestinian People. 100

US Department of State, Congressional Budget 2015.

US AID to Palestine Page 22

Humanitarian access to deliver aid to Gaza was hampered by the Israeli blockade imposed on Gaza.

The in Gaza economy has been struggling for years due to recurring wars and ongoing Israeli

blockade on exports and imports. Wars waged by Israel in 2008, 2012 and 2014 on Gaza, have had a severe impact on Gaza’s economy as it paralyzed economic activity and left severe infrastructure damage.101 Employment in the manufacturing sector fell to 5 percent as Gaza main markets, Israel and the West-Bank are not accessible.102

The closures of the smuggling tunnels with Egypt affected Gaza harshly since the tunnels were Gaza’s main trade channel. The economic decline has resulted in growing unemployment. According to the PCBS, unemployment jumped to 45 percent in Gaza during Q2 2014. Youth unemployment is of particular concern in Gaza where 63 percent of those in the labor force are unemployed.103 The economic, political and environmental situation in Gaza is unlivable and unsustainable especially the water and energy sectors. Gaza people have been kept alive by foreign aid.104 This dire situation in Gaza, may fuel a new wave of violence.105

Private investment in the Palestinian territories remains law and insufficient to generate

adequate rates of economic growth and to create enough jobs.106 The lack of a comprehensive peace agreement leads to a vicious cycle of economic decline and conflict. The impact of the political instability on the investment climate has been severe, resulting in uncertainty, increased costs for businesses and investors, and the fragmentation of Palestinian economic breathing space and available markets.107

Restrictions on movement and access adversely impact all Palestinian firms. In 2012,

Palestinian exports amounted to only 7.6 percent of GDP while trade between the West Bank and Gaza has dropped drastically since 2007. Firms experience difficulties in navigating through Israeli restrictions on access within and around the West Bank (checkpoints, the Separation Wall, the crossing points into Israel and, procedural restrictions such as the permit system).108 In the West Bank, restrictions on Palestinian development in Area C had cost the economy $3 billion, out of the total of $7 billion in economic losses resulting from the Israeli occupation measures.109

Positive indications There are positive aspects in the Palestinian investment climate, such as a stable financial sector and low incidence of bribery and potentially competitive productivity levels. Few Palestinian firms reported petty corruption in the form of informal payments to officials in their

101

World Bank, Palestine Economic Monitoring Report. 102

Ibid. 103

Ibid. 104

United Nations, Assistance to the Palestinian People 105

World Bank, Palestine Economic Monitoring Report. 106

Ibid. 107

Ibid. 108

Ibid. 109

United Nations, Assistance to the Palestinian People

US AID to Palestine Page 23

business operations.110 Palestinian firms’ labor productivity is similar to comparative countries, while unit labor costs remain competitive within the region. There is a potential opportunity to bring labor productivity up if Palestinian firms would invest more, and if resources shifted towards higher productivity sub-sectors in manufacturing and services.111

The Palestinian financial sector continues to be stable and liquid. The emergence of a venture capital fund and a few private equity funds are all important steps toward the development of equity financing in Palestine. A number of equity investors, including private equity funds and conglomerates, have attracted foreign direct investment and launched new investments.112These positive aspects means that the Palestinian private sector could respond effectively once Israeli restrictions on movement and access are lifted and the occupation come to an end.113

6. Conclusion

The Israeli government continued to control of all aspects of the Palestinian lives, including

their borders and economy. Israel continuing oppression of the Palestinian people, its refusal to

implement the interim agreements and to reach a final peace agreement 114 have resulted in

damaging the enabling environment needed for economic aid to reach its goals. The necessity

for the large and continuing aid to the Palestinian is caused by the lack of control by the

Palestinian over their resources, borders or livelihoods.115

The effectiveness of U.S. assistance to the Palestinians in furthering U.S. policy

objectives of establishing a Palestinian state and improve the lives of the Palestinian people is

challenged, logistically and strategically by the conflicting interests of Israel.116 USAID

development efforts to revive the Palestinian economy have produced minimum impact.

According to the World-Bank, since 2012 economic growth in the Palestinian territories have

been slowing down. It has fallen down 2% in 2013, and entered into recession in 2014. A recent

study concludes that the USAID funding has contributed only to the basic Human development

requirements for Palestinian communities.117 The Palestinian economy is unable to flourish due

to political uncertainty and Israeli measures against the Palestinian people.118

Even though the Palestinians received among the highest amounts of aid in the world

per capita, Palestinian refugees, and people in Gaza have been kept alive by foreign aid.119

110

World Bank, Palestine Economic Monitoring Report. 111

Ibid. 112

Ibid. 113

Ibid. 114

AMAN, Palestine Reconstruction Survey. 115

Turner and Shweiki, Decolonizing Palestinian Political Economy. 116

Zanotti, U.S. Foreign Aid. 117

http://library.iugaza.edu.ps/thesis/87128.pdf 118

World Bank, Palestine Economic Monitoring Report. 119

United Nations, Assistance to the Palestinian People.

US AID to Palestine Page 24

International aid efforts had been unable to improve the Palestinian economy or raise living

standards. The donor community including the US needs to examine whether they will continue

to subsidize the Israeli occupation of the Palestinian land, or would they take meaningful

political measures to end the occupation.120 Only freeing the Palestinian from the Israeli

oppression, will create the enabling environment needed for the Palestinian economy to

flourish.121

120

United Nations, Assistance to the Palestinian People 121

Ibid.

US AID to Palestine Page 25

7. List of References

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Abunimah, Ali. “How aid hurt Palestine,” The Electronic Intifada, (October, 2009), http://electronicintifada.net/content/book-review-how-aid-hurt-palestine/3562

AMAN Coalition for Integrity and Accountability, “Palestine Reconstruction Survey,” AMAN, (2007), http://www.integrityaction.org/sites/www.integrityaction.org/files/documents/files/Reconstruction%20Survey%20Palestine.pdf

Coren, Ora and Feldman, Nadan. “U.S. aid to Israel totals $233.7b over six decades,” Haaretz, (March 2013), http://www.haaretz.com/business/u-s-aid-to-israel-totals-233-7b-over-six-decades.premium-1.510592.

Haaretz Opinion, “Unbridled force,” Haaretz, (March 2003), http://www.haaretz.com/print-edition/opinion/unbridled-force-1.16116

Mearsheimer, John J and Stephen Walt. “The Israeli Lobby and US Foreign Policy,” London Review of Books, Vol. 28, No. 6, (March, 2006), http://www.lrb.co.uk/v28/n06/john-mearsheimer/the-israel-lobby

More, Anne Le. “International Assistance to the Palestinian after Oslo: Political guilt, wasted money,”, (London: Routledge, 2008), Preface.

Palestinian Central Bureau of Statistics (PCBS), http://www.pcbs.gov.ps/site/lang__en/881/default.aspx#Population, Last visited on 18-May-2015.

PCBS, http://www.pcbs.gov.ps/Portals/_Rainbow/Documents/e-napcapitacurr-1994-2013.htm, last visited 18-May-2015.

Qita, Abeer Ahmad “The Effect of USAID Funding in Developing the Palestinian Community,” Islamic University of Gaza, (July 2009), http://library.iugaza.edu.ps/thesis/87128.pdf.

Tartir, Alaa, Sam Bahour and Samer Abdelnour. “Defeating Dependency, Creating a Resistance Economy,” Shabaka, (February 2012), http://al-shabaka.org/wp-content/uploads/2012/02/defeating-dependency-creating-resistance-economy.pdf

The White House. “Remarks by the President on the Middle East and North Africa,” Office of the Press Secretary , (May 2011), https://www.whitehouse.gov/the-press-office/2011/05/19/remarks-president-middle-east-and-north-africa.

Turner, Mandy and Omar Shweiki. “Decolonizing Palestinian Political Economy: De-development and Beyond,” (London: Palgrave Macmillan, 2014), p13-32, https://books.google.co.il/books?id=dmqpBQAAQBAJ&pg=PA29&lpg=PA29&dq=decolonizing+the+palestinian+economy&source=bl&ots=4h54Zro454&sig=es_ui5QZ2GA9QWnvaIwMY9BbD8I&hl=en&sa=X&ei=nE9YVajPFMblUcrVgZgI#v=onepage&q=decolonizing%20the%20palestinian%20economy&f=false

United Nations. “Seminar on Assistance to the Palestinian People,” Division for Palestinian Rights, (July 2014), http://unispal.un.org/unispal.nsf/361eea1cc08301c485256cf600606959/d6a17e0116af905485

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257d540051ddfc?OpenDocument.

United States Government Accountability Office, “Palestinian Authority,” (US House of Representatives, GAO-10-505, May, 2010), http://www.gao.gov/new.items/d10505.pdf.

US Department of State, “Congressional Budget Justification: Regional Perspectives,” Foreign Operations, P502-511, (2015), http://www.state.gov/documents/organization/224070.pdf

US ForeignAssistance.gov. “West-bank and Gaza,” http://www.foreignassistance.gov/web/OU.aspx?FY=2015&OUID=389&AgencyID=0&FromRGA=true&budTab=tab_Bud_Spent, Last visited May-18-2015

USAID West-bank and Gaza. “Our Work,” http://www.usaid.gov/west-bank-and-gaza/our-work, last visited May-18-2015.

USAID. “Implementing Mechanisms,” (M/MPBP/POL, Sept 2008). http://www.usaid.gov/sites/default/files/documents/1868/200sbo.pdf.

World Bank. “Palestine Economic Monitoring Report,” http://www.worldbank.org/content/dam/Worldbank/Feature%20Story/mena/WBandGaza/wbg-docs/wbg-ahlc-report-2014-eng.pdf.

Zanotti, Jim. “U.S. Foreign Aid to the Palestinians.” Congressional Research Service, (July, 2014), https://www.fas.org/sgp/crs/mideast/RS22967.pdf.