January 29, 2008

January 29, 2008

Building a viable economic structure

The European Union's (EU) decision on Monday to adjust its aid programme for the Palestinians to target the economic reforms and other specific aims of the government of Prime Minister Salam Fayyad is a highly positive move. It is one of the most concrete moves to support and implement the plans drawn up by Fayyad, who is known to be a no-nonsense economist with a vision.
By announcing the decision, the EU implicitly sent a message that there would be no room for any mismanagement of funds by certain groups within the Palestinian movement. Inefficiency and corruption had become a feature of the Palestinian administration and that was part of the reasons for the defeat that the mainstream Fatah suffered in the last general elections that were won by Hamas.
Indeed, the reality remains that uncertainty is the key feature of Hamas-ruled Gaza. An all-embracing compromise has to be found to end the rift within the Palestinian community. Stop-gap measures are not enough and the various parties involved have the responsibility towards their people to ensure that the fragmented Palestinian liberation movement does not suffer any more and is put back into shape with the common objective of setting up an independent Palestinian state.
The talks that Hamas leader Khaled Meshaal held with Saudi officials in Riyadh on Monday would hopefully advance a compromise that would see the Gaza Strip being returned to PNA control. Short of that, all other proposals and plans would not make sense. And the process is likely to face snags because of what Hamas considers as its victory in breaching the Israeli lockdown on the Gaza Strip.
In the meantime, EU officials have said World Bank-monitored aid for fuel and hardship humanitarian cases in Gaza will continue because the EU is not making a distinction between Gaza and West Bank Palestinians. However, the Fatah-Hamas rift has to be sealed in order for any assistance to have the optimum effect through institutionalised channels.
The international community has signalled its support for the Palestinians by pledging $7.7 billion in aid for them in the next three years. It is definitely upto the Palestinians themselves to put their act together and get on with the process of regaining their land from Israel and set up an independent state there. Striking a just and fair deal with Israel is the toughest task that the Palestinians face. Parallel to that is the mission of building an infrastructure focusing on social and economic development of the Palestinian people. The EU decision is clearly based on that approach.