Financing for Development in Palestine

Types of Aid:
Budget Support
Humanitarian Aid
Development Aid
Relevant points:
Aid trends' changes (e.g.
 Development down
from 1/3 to 10%, while
Humanitarian and
Budget Support
increased, for example,
that of Budget Support
(via TIM, ESSP, and
support from Arab
countries) increased
from 1/3 to 70%
 First obstacle – aid in
Palestine is POLITICAL
and is NOT solely based
on Palestinian needs!
The PRDP is a comprehensive plan and budget for
Palestinian reform and development. The PRDP
initiative represents a major reform in its own right.
Indeed it is one of the most significant institutional
reforms ever implemented by the PNA. It is a vitally
important step towards building effective policymaking, planning and budgeting grounded in the
local context. Most importantly, it reflects the PNA’s
commitment to Palestinian ownership of, and
accountability for, the reform and development
 Economic
 Governance
 Infrastructure
 Social
In reality:
Programs under
each sector
Second obstacle:
Donor assistance
pledged for the
recurrent budget
falls short of the
PRDP’s needs
Aid Coordination Structure in the oPt
Status April 2008
Governance Strategy Group (GSG)
Economic Strategy Group (ESG)
Co-Chairs: Ministry of Planning / EC
Co-Chairs: Ministry of Finance / World Bank
Palestinian Authority: MoP, MNE, MoA, PMA, OoP
Donors: EC, France, Germany, IMF, Netherlands, Norway,
OQR*, Spain, UK, USA
Palestinian Authority: PMO, MoF, MoI, MoJ
Donors: Canada, Germany, Italy, Japan, OQR*,
Netherlands, Norway, UK, USA, World Bank
Private Sector
Dev. & Trade
Local Development
Forum (LDF)
EC, World Bank, USAID, UNSCO
Secretariat: LACS
Public Administration
& Civil Service
Local Aid Coordination
Secretariat (LACS)
Infrastructure Strategy Group (ISG)
Co-Chairs: Ministry of Public Works & Housing / USAID
Palestinian Authority: MoP*, MoLG, MoT, MoTIT, PWA, EQA, PEA
Donors: Belgium, Denmark, EC, France, Germany, Italy, Japan, Norway,
Spain, Sweden, UNDP, World Bank
Sector Working
Groups (SWG)
Ministry of Planning, Norway,
World Bank, UNSCO
Task Force on Project
Implementation (TFPI)1
Water & Sanitation
Municipal Dev.
& Local Gov.
Social Development & Humanitarian
Assistance Strategy Group (SHSG)
Co-Chairs: Ministry of Social Affairs / UNSCO
Palestinian Authority: MoP, MoEHE, MoH, MoL, MoF
Donors: Canada, EC, France, Italy, Japan, Norway, Sweden,
Switzerland, USA, OCHA, UNDP, UNRWA, World Bank
NGO Representatives: AIDA, PNGO
Education Social Protection
Delays in implementation of projects
Lack of security in the WB and Gaza strip
The political situation in the oPt affects the ability of the
PNA to coordinate effectively between the national
and the local level, esp. in infrastructure-related
Hesitation on the part of some donors to engage in
large-scale projects
Israel has tightened restrictions on movement and
access based on security concerns, and settlements in
the West Bank have expanded, with attendant risks to
economic growth and reforms
Unemployment and poverty remain high, especially in
Gaza, along with a rise in inflation
Continuous communication with Line Ministries
and pertinent organisations about their
emerging needs via the use of an efficient Aid
coordination Structure
Emphasis on the definition of a “Pledge” vs.
Clear distinction between “disbursements” &
Large portions of “commitments” go to
Technical Assistance, and donor expenditure