DfID-Palestinian Territories Partnership

Suffering from decades of territorial conflict with Israel, the Palestinians continue to strive for formal statehood. The World Bank considers the Palestinian territories — one of the areas which host Palestinian refugees and receive exclusive assistance from the U.N. Relief and Works Agency — among the poorest regions across the Middle East and North Africa. The Palestinian territories are crippled by economic restrictions on the movement of people and goods within and outside the borders. Palestinians’ access to natural resources, international trade and even basic utilities, such as water and electricity, are limited. In 2012, the U.N. Development Program recorded a 22.8 percent unemployment rate in the territories, which is expected to further increase as peace talks with Israel are stalled. While the Palestinian National Authority has been governing the area since 1994, the body performs only administrative functions. A resolution of the Israeli-Palestinian conflict is the long-standing objective of U.K. aid in the Palestinian territories. The Department for International Development remains committed to bilateral negotiations and a two-state solution with an independent Palestinian state sharing Jerusalem as capital city with Israel. According to DfID, the transformation of the Palestinian territories into an effective and viable democratic and trade partner with Israel requires heavy investment in educating the refugee-dominant Palestinian society, strengthening the PNA as a governing political body, and ensuring immediate humanitarian relief efforts in the most desperate areas. Funding levels From fiscal years 2010-11 to 2014-15, the Palestinian territories are set to receive 417.17 million pounds ($659 million) from the United Kingdom. DfID’s annual spending averages 83.4 million pounds. U.K. aid is delivered mainly through multilateral donors like the U.N. agencies with special coordination with UNRWA because of its unique mandate to assist Palestinian refugees. DfID, which has governance initiatives that are aligned with the priorities of the 2011-2013 Palestinian National Plan, also provides budget support to PNA via the World Bank Trust Fund. DfID also utilizes the Palestinian private sector and technical experts for critical initiatives, including the strengthening of PNA’s public financial management system. Funding priorities DfID’s engagement in the Palestinian territories targets five key areas: (1) wealth creation, (2) governance and security, (3) education, (4) health, (5) and poverty, hunger and vulnerability. DfID’s two largest operational projects in the Palestinian territories are the State-building and Service Delivery Grant to the Palestinian Authority in the Occupied Palestinian Territories ($193.1 million) and the Support to the UNRWA ($169.1 million). Along with the World Bank and the Palestinian Ministry of National Economy, DfID funded the project Facility for New Market Development which has provided grants to over 600 export-oriented Palestinian enterprises in the West Bank and Gaza. Devex analysis A close inspection of U.K. aid strategy and spending reveals that DfID’s aid to the Palestinian territories is slated to gain a 4.5 percent average annual rise from 2011 to 2015 – the seventh-lowest increase in British bilateral aid assistance to its 27 priority countries. Despite the marginal increase, the significance of resolving the Israeli-Palestinian conflict is highlighted in The Coalition — a 2011 document jointly authored by two opposing British political parties, that puts forward the broader local and international agenda of the U.K. government. For many analysts, the document reflects the Cameron government’s serious commitment to the welfare of the Palestinians and gives an indication of the U.K. aid package for years to come. Unsurprisingly, however, the poor security conditions in the Palestinian territories are a source of constant aid delivery challenges for donors and implementing partners. And Israel’s refusal to stop its settlement activities in the territories and its withholding of tax revenues collected on behalf of the PNA have diminished the possibility of resuming bilateral talks which were halted in 2010. The United Nations’ recent approval of Palestine as nonmember observer state will unquestionably provide PNA increased access to other international bodies and therefore boost its leverage against Israel. Positioning itself as strongly against a multilateral approach to resolving the conflict, the United Kingdom was one of the few that abstained in voting in favor of the upgraded PNA status. DfID Palestinian Program Tel: (44-845) 300-4100 or (44-1355) 843-132 Email: enquiry@dfid.gov.uk, pressoffice@dfid.gov.uk Join the Devex community and gain access to more in-depth analysis, breaking news and business advice — and a host of other services — on international development, humanitarian aid and global health.