July 27, 2007
BRIEFING PAPER No.32, 27 July 2007, AFP
Introduction
Palestinian dependency on humanitarian aid and relief efforts has been forced on the people by Israel's punitive occupation. This dependence has escalated since economic sanctions were imposed last year leaving the Palestinians internationally isolated and facing an economic and humanitarian crisis. Distressingly for the Palestinians, emergency humanitarian assistance - undertaken to keep them from starving - has exacerbated their economic problems. They are in the invidious position of having to buy Israeli imports instead of cheaper goods from Jordan or Egypt. Not only is this aid contributing to Israel's economy, it has obscured Israel's responsibility for destroying the Palestinian economy and is actually funding Israel's occupation. Palestinian reliance on aid only ever became necessary because Israel stopped Palestinian economic development in its tracks. International aid, which had contributed to the development of a self-sustaining Palestinian economy hardly managed to get off the ground as Israel's suffocating restrictions disallowed any and every initiative to achieve that. Also, Israel's frequent incursions and aerial attacks destroyed much of the equipment supplied by international donors. When sanctions were imposed by the international community to punish the Hamas Party for winning government, Israel increased its restrictions and made the delivery of aid as difficult as possible. Only the imminent starvation of a whole population has seen Israel relax the restrictions to allow some aid to go through, but the interference in the delivery of aid continues. So great is this interference that UN agents have complained "we don't know of another conflict area in the world where we've had these problems". This emergency aid no longer contributes to developmental projects and is merely a means to stave off the hunger of an entire population. While it might assuage the consciences of international donors, such aid is causing a situation for the Palestinians that is heading dangerously towards a refugee and humanitarian crisis yet again. No one is suggesting that aid should be stopped, but the situation that makes aid necessary must be urgently addressed. It is the occupation and Israel's closure policies and control of resources that absolutely need to be challenged and ended. And, only the application of international law can deal with the problems arising out of this crisis. Failing that, donors will find themselves colluding in the destruction of Palestinian society.
How foreign aid funds Israel's occupation
Prevented from producing and competing with Israel's economy, Israel's punitive occupation has forced the Palestinians to become consumers and this is perpetuated by foreign aid. Effectively international donors foot the bill while Israeli companies reap the profits out of the desperate need of an entire population under Israel's occupation.
- Palestinians have to use foreign assistance money to import goods, 74% of which are imported from Israel.
- Palestinians are dependent on Israeli-controlled utilities (water -a resource actually stolen from the Palestinians, electricity and phone services) for which they have to pay higher usage rates than the Israelis. In 2004, Israel confiscated some $US15.8 million in aid money for utility bills owed by Palestinian municipalities.
- When buying from international companies, Palestinians have to pay customs to the Israeli Government as a consequence of the "Paris Economic Protocols" appended to the Oslo agreements, despite Israel not fulfilling its promise to allow Palestinian workers the freedom to seek work in Israel. This has added to the massive unemployment statistics.
The fallout of foreign aid
A culture of dependence is expanding, not because the Palestinians want to be aid recipients, but because their situation is so impossibly desperate. In 2005, 16 per cent of European aid was classified as humanitarian; in 2006, this number had increased to 56 per cent. Palestinians are now one of the most aid-dependent populations in the world. The UN special envoy Alvaro de Soto said before concluding his service in May 2007, ". . . by not engaging with government bodies that actually run Palestinian affairs, the international community has undercut its ability to promote the reform goals it advocates, to ensure that the Palestinian administration runs efficiently. . . This has grave political consequences since these institutions are meant to be the foundation on which, one day, a Palestinian state will be built."
Temporary International Mechanism
This disastrous policy intended to by-pass the Palestinian Authority has been called "an aid fiasco" by the international agency Oxfam. More than a million euros of European Union aid is being paid to the HSBC Bank each month in bank charges for transferring allowances to over 140,000 Palestinian low-income workers through individual bank accounts. The Temporary International Mechanism was deliberately set up to by-pass the democratically-elected Hamas Government, but the net result has been the undermining of basic services which has further damaged the already highly fragile economy and undermined the Palestinian institutions that are absolutely necessary for the establishment of a sovereign Palestinian state. Despite the current moves to install a new Palestinian government and to formulate a peace treaty, the temporary international mechanism will not be lifted until September this year.
Breaches and obligations
- The Palestinian National Authority (PNA) has an obligation to ensure the security and welfare of its people in Gaza.
- As an Occupying Power, Israel must provide for the welfare of all Palestinians under International Humanitarian Law. International aid has allowed Israel to side-step this responsibility.
- While Israel claims it no longer occupies Gaza it is directly responsible for the humanitarian crisis through the closures and prison it has created. The people of Gaza are still under occupation and their welfare should be Israel's responsibility.
- Under the Movement and Access Agreement of November 2005, Israel is required to open the main crossing points in the Gaza Strip. By not doing so, it violates two of the most basic tenets of international law - the principle of proportionality and the principle of distinction.
- The sanctions imposed on the Palestinian people by the world community is collective punishment for their democratic vote.
Australian action
- DEMAND THAT THE "TEMPORARY INTERNATIONAL MECHANISM" BE SCRAPPED IMMEDIATELY AND THAT AID BE GIVEN TO THE PALESTINIAN AUTHORITY SO THAT IT CAN DELIVER ESSENTIAL SERVICES THROUGH NATIONAL AND LOCAL AGENCIES IN THE WEST BANK AND GAZA
- DEMAND THAT ISRAEL END ITS CLOSURE POLICIES, CONTROL OF RESOURCES AND BRING TO AN END THE OCCUPATION o DEMAND THAT INTERNATIONAL LAW BE APPLIED TO RESOLVE THE CRISIS
References:
House of Commons International Development Committee "Development Assistance and the Occupied Palestinian Territories", Fourth Report of Session 2006-07
"The Economic Impact of the Conflict of Israelis and Palestinians" paper presented by AIC economist Shir Hever at the United Nations Seminar on Assistance to the Palestinian People, held in Doha on 5-6 February 2007
Keating, Michael et al, "Aid, Diplomacy and Facts on the Ground: The Case of Palestine", Chatham House Publishers, 2006
Australians for Palestine,
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Submitted to this site by Sonja Karkar