Donor Intervention And Palestinian Economic Development Economics Essay

The aim of this research is to place the much debated subject of assistance effectivity to the Palestinian surroundings and to analyze the part of donor intercession to the development of the Palestinian economic system since the sign language of the Oslo agreements. The reaching of the Palestinian Authority to the districts began a new chapter in donor-recipient dealingss with heightened optimism and outlook from both sides. Consequently, the research dissects the post-Oslo epoch into three historically typical stages and inspects the giver intercession in each stage:

Phase I ( 1994-2000 ) : From the reaching of the PA until the eruption of the 2nd uprising Intifada.

Phase II ( 2001-2006 ) : From the 2nd Intifada until the Palestinian Legislative Council ( PLC ) elections.

Phase III ( 2006-2010 ) : From the PLC elections until the present twenty-four hours.

After briefly foregrounding the nature and magnitude of donor intercession in each of these stages, the research will show the cardinal research question and inside informations the research methodological analysis used. As a qualitative research, the primary information will be collected from several structured interviews with international and local development experts in Palestine.

Problem Statement:

The subject of assistance effectivity is one that is continuously rehearsed in the universes of academe and development. Because of its immature age, there is no consensus as to whether foreign assistance is an effectual tool in battling the sufferings of the underdeveloped universe. Many of those who challenge its effectivity claim that it is an overrated tool that is merely non working. Those who support it brandish success narratives from around the universe and argue that if so it does n’t work so at least it does n’t harm. And so there are those who insist that, like all others tools, foreign assistance can merely be effectual if used in the right fortunes and aid-friendly environments. These three statements have been the fliting streamers of the three schools of ideas that have emerged since the construct of foreign assistance foremost surfaced in the post-World War II ( WWII ) period.

Since the research will be concentrating on the effectivity of foreign assistance in the development of economic in Palestine, so I will be concentrating in the literature reappraisal on the economic background in Palestine. Therefore, before reexamining the giver intercession in Palestine, it is important to show a glance of the Palestinian economic system since Oslo. Consequently, the literature reappraisal will supply a mention to the province of the Palestinian economic system during each of the first two stages mentioned above.

I exactly chose this subject for the intent of analyzing closely the assistance effectivity and giver intercession in Palestine in the post-Oslo period. However, the research will assist me happen if the features of Palestine and the nature of the development procedure under business are a decisive factor in measuring the success or defect of donor intercession in its attempts to construct a self-sufficing economic system. However, in my perceptual experience, the instance of Palestine is alone to any other comparable struggle or development environment due to the complexness of the Palestinian-Israeli struggle, the figure of unmanageable factors that influence the economic system and the political relations of the chief histrions involved in the development procedure. The issue of political stableness and its relation to assistance effectivity is non as of import a factor as is the freedom of motion of people and goods.


The Palestinian economic system had non been subjected in the development and growing over decennaries since the British colonisation of Palestine in 1917 and until the constitution of the Palestinian National Authority ( PNA ) . The economic rate of growing was determined harmonizing to the national economic aims. On the contrary, the growing rate has been subjected to devastation and deformation doing deep structural instabilities which impeded its development and growing and veered it towards the accomplishment of the economic aims of Israeli.

As a consequence of these policies, the PNA since its constitution in 1994, inherited fragile and an affiliate economic system which is enduring from a non-existent substructure or weak and limited in the capacity of the Palestinian labour, and a big break of Gross National Product ( GNP ) and Gross Domestic Product ( GDP ) , in add-on to the chronic shortage in the trade balance. Consequently, the big fiscal load faced by the PNA because of this economic bequest it endured, the Palestinian economic system suffered from another instability that is added to the bing instabilities, that is the chronic shortage in the budget of the Authority. This shortage refers to any instability between the sum of gross from narrow resources, and the big size of public expense required to get by with the many economic jobs, and the reform of the big instabilities and build assorted substructure.

In malice of the restrictions imposed by the political and economic understandings with Israel in the interim period, but the chance was released for the Palestinian people and their national authorization to explicate a national economic policy of which the Palestinian economic system individuality and its paths development will be identified to get the better of the structural instabilities that we have inherited from the business and set the economic system on the way of sustainable development. The National Authority managed to accomplish a set of achievements at the degree of the traditional maps such as defence, the care of security, enact Torahs and statute law, guarantee the regulation of jurisprudence and make an enabling environment to promote private investing in assorted productive and service sectors during the period between 1994-2000, which contributed to better the public presentation of the Palestinian economic system and high rates of growing, particularly in the old ages 1998 and1999. The GDP for the twelvemonth 1999 reached about $ 4,750 million and GNP about $ 5,850 million, which increased the per capita GDP to make $ 1,575 ( an addition of 1.7 % for the twelvemonth 1998 ) , and raised the per capita Gross national product to $ 1,940 dollars ( an addition of 2.6 % for the twelvemonth 1998 ) . The information indicates the high rates of public ingestion by 22 % every bit good as an addition in the private ingestion by 7.4 % during 1999.

The entire ingestion during 1999 was about $ 6 billion, which represents 105 % of the GDP. This rise occurred due to an addition in the public expenses on staffing and operating disbursals. In contrast, the volume of investing decreased compared with twelvemonth 1998 with a per centum of 6 % . In 1999, the investing reached about $ 1.6 billion, which accounts for 34 % of GDP, compared with 39 % in 1998 ( Ministry of National Economy, 2005 ) .

Research Questions:

In order to avoid the hazard of diverting off the subject, I will be concentrating on a cardinal research inquiry that will to be spelled out into several theory inquiries.

Harmonizing to my research subject, the Central Research Question ( CRQ ) will be:

How effectual is the part of foreign assistance in constructing a sustainable economic system of a conflict-ridden state?

In order to reply the CRQ inquiry, theory inquiries will be asked as follow:

Q1: What is the impact of giver intercession in a state of struggle, viz. Palestine?

Q2: What are the effects of Israeli military steps on the economic development of Palestine?

Q3: What are the opportunities of sustainable economic growing in Palestine given the bing world?

Q4: Did foreign assistance aid stop corruptness and expedite establishment edifice in Palestine since the reaching of the Palestinian Authority ( PA ) ?

Q5: What function does the PA and Palestinian non-governmental organisations play in puting the precedences of where foreign assistance should be directed?

Each of the five theory inquiries pertains to a subject that is relevant to the issue of foreign assistance effectivity. Although the primary purpose of this research is to look into donor intercession in Palestine post-Oslo, nevertheless, it is important to near the affair from a holistic point of view. It is non sufficient to merely oppugn the impact of giver intercession, but besides to cast some visible radiation on the influence of Israeli military policies, the administration in the PA, the overall opportunities of economic sustainability in Palestine and the function of the PA in puting its precedences. Respectively, the subjects that have been corresponded to each theory inquiries are as follows:

Subject 1: Donor Intervention – Question 1: What has been the impact of giver intercession in Palestine station Oslo?

Subject 2: Military Policy – Question 2: What are the effects of Israeli military steps on the economic development of Palestine?

Subject 3: Sustainable Growth – Question 3: What are the opportunities of sustainable economic growing in Palestine given the bing world?

Subject 4: Governance – Question 4: Did foreign assistance aid stop corruptness and expedite establishment edifice in a struggle state?

Subject 5: Inclusivity – Question 5: What function do the PA, PNGO and donees play in puting the precedences of foreign assistance allotment?

Through the primary and secondary informations, I will be able to reply these inquiries and to happen the decision of the overall function of the foreign assistance in the sustainability of economic development in Palestine.

Theoretical Model:

The research worker will measure secondary resources such as studies and paperss related to the economic state of affairs in Palestine and foreign assistance to Palestine from the Ministry of National Economy, Center for Palestine Research and Studies, Ministry of Planing and International Cooperation, World Bank, and other resources every bit good.

Research Methodology:

Due to the nature of my research, I will merely be concentrating on one of the research methodological analysiss, which is the qualitative method. The pick of a qualitative survey is preferred due to the shortness of the period being examined and in an effort to paint a more dynamic image of the development environment in Palestine. Unlike quantitative methods where the empirical information is inactive and is at the nucleus of any statement, the qualitative method purposes to invigorate up the overall context and to pull decisions based on the testimonies of experts who have been informants to the events of the past epoch. This methodological analysis will assist see the other finding factors of assistance effectivity which are otherwise overlooked in the more mainstream methods of analysis.

Qualitative tool: in this method, I will be carry oning semi-structure interviews with the International organisations working in the field of economic development in Palestine. In add-on, I will be carry oning interviews with representatives of the Palestinian Authority and with a representative of the Palestinian NGOs. I will be guaranting that all my interviews will be conducted with of import determination shapers in their Fieldss and who are considered focal in puting the development policies and allotment precedences of giver financess. Through my interviews, I will be able to reply the cardinal inquiries and the theory inquiries every bit good.


The followers are the research hypotheses:

The International givers played an tremendous function in the sustainability of economic development in Palestine.

The Palestinian-Israeli struggle affected the procedure of economic development in Palestine?

The Palestinian Authority and Palestinian non-governmental organisations play a sufficient function in puting the precedences of foreign assistance allotment?

Thesis Findingss:

After roll uping the primary informations from assorted beginnings and the secondary informations from official sides through the interviews, I will be able to analyse all the information in order to near a decision of whether foreign assistance assisted in prolonging an economic development in a conflict-ridden state such as Palestine.

Time Agenda:

Activity/ Month 2011






1. Datas aggregation

2. Behavior interviews

3. Interview information analysis and decision

4. Finalization and entry of thesis