Let’s start with a contradiction:

1. It seems that the Arab countries are no longer prepared to bail out their friends in Gaza and in Ramallah. Donor funding has dropped by over 80% since 2008 to under US$200 million a year.
2. Albeit from a low base, economic growth in 2021 will hit 6% and that is despite the Gaza rocket shelling during May.

Now, let’s bring in a dichotomy. We talk of “the Palestinian economy” , but this is increasingly one term for two different arenas. The tired and corrupt regime of the elderly President Abbas still nominally controls much of the West Bank. Meanwhile, Hamas rules Gaza through terror and corruption.

Is there another route? Can the Palestinians obtain a higher standard of living, even if this does not meet all of their political aspirations?

The Abraham Accords have shown how trade doors are being wrenched open for Dubai , Bahrain and Abu Dhabi, now that they have actively recognised Israel’s right to exist. And just this week, Israel signed a new cooperation agreement so that Jordan can produce 600 megwatts in renewable energy for Israel. The government in Jerusalem will examine desalinating 200 million cubic meters of water for Jordan.

So the opportunity is clearly there.

Meanwhile? A significant number of Palestinians, particularly in Gaza are dependent on handouts. For example, the UK government announced this week.

In Financial Year 2021/22 the United Kingdom (UK) has provided £11m to United Nations Relief and Works Agency’s (UNRWA) core programme budget to help UNRWA provide basic education to more than 533,000 children a year (half of which are girls), access to health services for 3.5 million Palestinian refugees and social safety net assistance for around 255,000 of the most vulnerable across the region. The UK also provided £3.2m to the UNRWA’s emergency appeal in May 2021 to help provide basic services, such as healthcare and clean water following the Gaza conflict.

James Cleverly – Foreign, Commonwealth and Development Office

Doubts continue to persist if all of the sums reach the intended targets. And this poverty promotes the interests of Hamas and others not interested in a peaceful solution.

Not looking good.