Top development aid donors to West Bank and Gaza

Providing humanitarian and reconstruction assistance to Gaza is a daunting task that, according to an initial estimate from Palestinian officials, could cost as much as $6 billion. The most recent escalation of conflict between Israel and Hamas-administered Gaza has resulted in massive destruction and the loss of nearly 2,000 lives — many of them civilians and children — during a monthslong war that, with a contested casualty count and a still-uncertain resolution, could only yield a Pyrrhic victory for either Israel or Hamas. While relatively shielded from the tensions that escalated into a full-blown war, the West Bank also suffered casualties as violence spilled over to the territory. Donors to the Palestinian territories could help with the recovery. A closer look at available forward spending figures and planned budgets for the Palestinian territories shows that traditional donors remain the largest providers of development assistance to West Bank and Gaza. Norway, Canada and the United Arab Emirates — among the largest donors to the Palestinian territories based on their 2011-2012 averages — do not publish their aid targets for specific regions or sectors, but an overview of their past spending shows that at least Norway and UAE could continue to be important partners for West Bank and Gaza. Norway emphasized education, energy and health in its program assistance as it spent more than $100 million on West Bank and Gaza in 2013. UAE, which recently became a member of the Development Assistance Committee of the Organization for Economic Cooperation and Development, spent an average $67 million on the Palestinian territories from 2011-2012 and gave $50 million in budget support to the Palestinian Authority last year. Meanwhile, Canada’s foreign aid budget for 2014-2015 is expected to be reduced by 319 million Canadian dollars ($292 million). The bulk of the aid cuts will affect Canada’s multilateral programming, health spending and assistance for conflict-affected territories, including West Bank and Gaza. The dominance of traditional donors doesn't mean that Arab governments have played a minor role. Aid from Arab countries peaked at $1.8 billion in 2008, but fell to $600 million in 2012, when Gulf states slashed their assistance because of both higher domestic spending during the Arab Spring and the global economic crisis. A few Arab states have also been providing budget support to the Palestinian Authority. Saudi Arabia, the third-largest donor to the U.N. Relief and Works Agency for Palestine Refugees in the Near East in 2013, is set to spend more than $80 million on budget support this year. Qatar and Algeria, meanwhile, will give nearly $100 million and $26 million, respectively, for Palestinian budget support. Below, Devex ranks the top aid donors to West Bank and Gaza for 2014 and takes a closer look at their programs and priorities. United States ($440 million) The United States has committed more than $5 billion in bilateral assistance since the Palestinian territories were given limited authority in the mid-1990s, according to a recent Congressional Research Service report on U.S. foreign aid to Palestinians. Straddling a delicate — and difficult — position in the Middle East, the United States is the largest donor to Israel and the Palestinian territories. While military aid has made up the bulk of U.S. assistance to Israel, funding for humanitarian and economic recovery needs has been the focus of U.S. aid to West Bank and Gaza. U.S. assistance to the Palestinian territories is also subject to various vetting requirements to prevent funds from being diverted to Hamas, which the United States considers a terrorist organization. European Union ($370 million) The European Union provides aid to the Palestinian territories to strengthen the rule of law, the private sector, and water and sanitation — areas that are integral to the formation of a democratic and thriving state. Through the PEGASE mechanism, the main channel in which the EU can direct funds straight from its budget, the EU helps the Palestinian Authority pay the salaries of public workers, support public service delivery and extend social assistance. The EU’s total humanitarian assistance for the Palestinian territories this year is currently at 31.6 million euros ($42.3 million). Two-thirds of this amount, according to the EU, is allocated for emergency response and food assistance in Gaza. UNRWA ($310 million) A UNRWA-run school, supposedly a safe haven from the shelling in Gaza, wasn’t spared as a strike that hit right beside it ended up killing at least 15 people — an incident that moved UNRWA spokesman Chris Gunness to tears during a live interview with Al-Jazeera Arabic and inadvertently shone a spotlight on the civilian casualties during the conflict. Largely responsible for food, health care and education needs, UNRWA is seen as a stabilizing force in the Palestinian territories by both U.S. and Israeli officials, according to the CRS report. But its stature as a beacon of the rights of Palestinian refugees has attracted the ire of Israel, which has accused the organization of engaging in “one-sided political advocacy.” Some members of Congress, meanwhile, are concerned that U.S. contributions to UNRWA — the United States, after all, is UNRWA’s largest donor — could inadvertently fund payments to Hamas. A 2009 report from the Government Accountability Office found that while this worry was unwarranted, “weaknesses remain” in UNRWA’s screening procedure. Despite these doubts, UNRWA has continued to provide basic services to Palestinian refugees in the Middle East. In Gaza, it has started to target its assistance toward the most vulnerable of the poor. United Kingdom ($136 million) The resignation of Senior Minister for Foreign and Commonwealth Affairs Sayeeda Warsi over what she has called Britain’s “morally indefensible” approach toward the conflict in Gaza and her subsequent call for an arms embargo against Israel have stoked debate over the British government’s relationship with both Israel and Palestine. Despite believing that Israel has a “legitimate right to self-defense,” the United Kingdom is currently reviewing 8 billion pounds ($13.5 billion) in arms sales to Israel to check whether the military equipment licenses are appropriate in the context of the conflict. Support from the United Kingdom for West Bank and Gaza, meanwhile, continues to be significant. This year, the United Kingdom will give $19 million in budget support to the Palestinian Authority. Through the Department for International Development, much of British assistance will be used to alleviate poverty, hunger and vulnerability as well as improve education in the Palestinian territories. Japan ($76 million) Japan is quite vocal about its staunch support for West Bank and Gaza. In June, the Japanese government said that it “deplores” Israel’s decision to publish tenders for 1,500 housing units in East Jerusalem and the West Bank — a violation of international law and a move that veers away from the elusive two-state solution for Israel and Palestine. A month later, the Asian donor country said it also “deeply deplores” the Israeli shelling of a United Nations-run school in Rafah — an incident that U.N. Secretary-General Ban Ki-moon has lambasted as a “moral outrage and a criminal act.” Last month, Japan pledged $5.5 million in humanitarian aid — an amount that will cover food and medicine distribution as well as technical assistance in water and sanitation — for Gaza. Much of Japan’s 2014 bilateral aid spending, meanwhile, will go toward improving water infrastructure in Jericho city and bolstering public services in Jordan Valley, both in the West Bank. Germany ($55 million) Germany’s agency for international cooperation, GIZ, on behalf of the German Federal Ministry for Economic Cooperation and Development, prioritizes sustainable water infrastructure, security, environment, governance and economic development in its programs in West Bank and Gaza. Like Japan, Germany considers water an important part of its assistance to the Palestinian territories. More than bolstering the capacity of institutions to provide and regulate water services, Germany works with the Palestinian Ministry of Women’s Affairs to encourage women to take up management posts in the water sector. Germany also has a regional social and cultural fund for Palestinian refugees and the Gaza population. The fund services the needs of refugee communities in the West Bank and strengthens psychosocial support in schools in Gaza. France ($40 million) The first to announce that it would back Palestine’s bid to become a nonmember observer state of the United Nations in 2012, France has been supporting West Bank and Gaza through the French Development Agency’s water and energy infrastructure investments. Last year, it provided $25.7 million in budget support to the Palestinian Authority. In late July, President François Hollande announced 11 million euros in assistance for Gaza. And in what could be construed as a sign of support for the unity government, France will give 8 million euros to the Palestinian Authority, and the rest to Gaza-based nongovernmental organizations. Check out more insights and analysis provided to hundreds of Executive Members worldwide, and subscribe to the Development Insider to receive the latest news, trends and policies that influence your organization.