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WEST BANK/GAZA
>> Regional Overview >> West Bank/Gaza Overview Introduction
The U.S. Government committed to provide $375 million over a 5-year period (FY 1994-FY 1998) through USAID for a program of assistance to the Palestinian people following the September 1993 signing of the "Declaration of Principles on Interim Self-Governing Arrangements" by the Palestinian Liberation Organization (PLO) and the Government of Israel. USAID's $75 million annual budget was maintained through FY 1999 and increased in FY 2000 to $85 million. To date, USAID assistance has coincided with an interim, transitional period of expanding Palestinian self-governance while the Israeli-Palestinian peace process continued. As a result of the progress achieved in the September 1998 Wye River Memorandum, the U.S. Government pledged $400 million in assistance to the Palestinians over a three-year period (FY 2000-2002) in addition to our ongoing annual assistance. Prime Minister Barak's election in May 1999 reinvigorated the peace process, by implementing commitments in the Wye River Memorandum and promoting final status negotiations. The USAID assistance program, which demonstrates the U.S. commitment to economic development in the West Bank and Gaza, is an essential element of the U.S. Government strategy for long-term peace built on a foundation of regional stability, economic prosperity and adherence to democratic principles.The Development Challenge
The USAID West Bank and Gaza program is designed to promote long-term, sustainable development for the Palestinian population. Some of the basic constraints to development in the West Bank and Gaza include: nascent institutions of governance; limited modern infrastructure; limited natural resources (especially water); geographic separation of the West Bank and Gaza; and a rapidly expanding population. In response to these challenges, since FY 1996 USAID resources have been concentrated in three strategic areas related to private sector growth, water resources, and democracy/governance. In addition, in FY 1999 USAID added activities in two areas: maternal/child health and community services. Wye Supplemental funds will permit USAID to expand these existing programs to more underserved segments of the population and to address important components of a growing economy, including access to higher education and improved road infrastructure. The plans for use of the Wye funds are discussed in each Activity Data Sheet and summarized under "Possible Adjustments to Plans."Mission Strategic Objective #1: Expanded Economic Opportunities. According to analyses conducted by the United Nations, real per capita gross national product (GNP) in the West Bank and Gaza fell from approximately $2,500 in 1992 to approximately $1,600 in 1998. Unemployment is currently 14% and poverty around 20% (both are higher in Gaza). Although distressing, these figures are improvements over the situation in 1995. The favorable developments are the result of increasing numbers of Palestinians crossing into Israel for work and increased growth in the private sector. Although border and mobility restrictions have lessened as a result of improvements in the peace process, such restrictions still reduce commercial activity by delaying movement of goods and increasing handling costs. USAID programs address constraints to private sector growth that are particularly important in this environment, specifically by increasing access to credit, by expanding export market access and local market share of Palestinian firms, and by supporting the development of a transparent and comprehensive regulatory framework conducive to investment. The notable results expected include an expansion in the number of commercial banks and microenterprise loans, increasing sales for assisted firms, including firms in the Gaza Industrial Estate, a stronger regulatory environment to promote business and commerce, organization of several new industrial zones in the West Bank and Gaza, entry of additional graduate business education participants and progress in a major inter-urban road system.
Mission Strategic Objective #2: Increased Access to and More Efficient Use of Scarce Water Resources. A grossly inadequate supply of water for household consumption, agricultural production and industrial development is a major obstacle to long-term sustainable development in the West Bank and Gaza. Per capita water consumption in many parts of the West Bank and Gaza is less than 50 liters per day. By contrast, the World Health Organization (WHO) has established a minimum per capita standard of 100 liters per day for small rural households. The difficulty of bridging the gap between potential demand and available supply of water for Palestinians in the West Bank and Gaza will be further exacerbated by anticipated high rates of population growth. Article 40 of the Interim Agreement negotiated between the Palestinians and Israel in 1995 established an operational framework for addressing the acute basic water requirements of Palestinians living in the West Bank and Gaza. Since 1996, USAID-funded activities have directly supported implementation of the water aspects of the Interim Agreement. USAID has recently completed several major water and wastewater infrastructure projects which double the daily consumption of water in the Hebron-Bethlehem region, significantly improve the control of wastewater and its effective reuse in Gaza, and increase the access to water in 11 villages near Jenin. Activities planned over the next several years under this SO are aimed at developing and implementing a long-term sustainable solution to the problem.
Mission Strategic Objective #3: More Responsive and Accountable Governance. Following the initial establishment of the Palestinian Authority (PA) and the 1996 elections, USAID has assisted the Palestinians to focus on further transition towards self-rule, through the establishment of a governmental system based on democratic checks and balances, and the development of accountable and transparent governance. USAID assistance has already had a widespread influence on the evolution of a more balanced division of political power. Civil society organizations are increasing access to decision-making, the Palestinian legislature is consulting with its constituents and voters are receiving training in democratic political concepts. In addition, a new program to strengthen the rule of law by support to the judiciary was initiated in FY 1999. The USAID program aims to help develop a vibrant civil society with an active role in the decision-making process and to assist the Palestinian Authority, including the executive, legislative, and judicial branches, develop technical proficiency and institutional stability. Additional resources in FY 2000 and FY 2001 will be invested in improving the still nascent Palestinian institutions.
Mission Special Objective 2: Selected Development Needs Addressed. Between 1996 and 1999, USAID responded to important political initiatives through this Special Objective. For example, as a result of the Hebron Protocol, in FY 1997, USAID funded the renovation of Shuhada Road, a main Palestinian thoroughfare in Hebron. In the fourth quarter of FY 1999, USAID initiated assistance in the areas of community services and health under this SpO. In FY 2000 and FY 2001, up to $100 million may be provided under this Special Objective to facilitate implementation of the Wye River Memorandum. Assistance may include: support for people-to-people programming, funding for facilities and equipment for the seaport, airport and border checkpoints to encourage the movement of goods.
Mission Strategic Objective #7: Maternal-Child Health Care Improvements Demonstrated. The most serious health problems facing mothers and children in the West Bank and Gaza derive from high fertility with short birth intervals, along with weaknesses in clinical and outreach services. Rapid population growth is a major impediment to economic growth and social stability. A new pilot activity was initiated in FY 1999 which will test methodologies for delivering effective health services to woman and children, as well as to examine conditions and services in other areas of the health sector which impact on maternal-child health. USAID will expand its maternal-child health activity in FY 2000 and FY 2001, which will increase delivery of family planning services and health care for mothers and babies.
Mission Strategic Objective #8: Community Services. Inadequate access to basic services -- along with high unemployment and low income levels -- are factors which lead to despair and frustration at the community level, and which can undermine popular support for peace initiatives. USAID support will revitalize community-level infrastructure, improve basic services, and reach disadvantaged groups. U.S. private voluntary organizations (PVOs) will implement much of the program through grassroots-based activities designed to meet needs identified by communities themselves. Initiated in FY 1999, the community services program will be expanded in FY 2000 and FY 2001 to encompass more villages and a larger portion of the lower income Palestinian population in the West Bank and Gaza.
Other Donors
At the October 1993 Conference to Support the Middle East Peace Process, donors pledged $2.4 billion in assistance to the Palestinian people. For the 1994-1998 period, total pledges reached $4.2 billion and total disbursements equaled $2.5 billion. An additional $3 billion was pledged by the international community at the start of FY 1999.Given the combination of political and financial resources dedicated to the Palestinian-Israeli peace process, the U.S. Government, Germany, Japan, the European Union, Norway, the World Bank and the IMF are considered the lead donors in the West Bank and Gaza. In coordination with other donors, the World Bank and the International Monetary Fund (IMF) have taken lead roles in the economic restructuring of the Palestinian economy. Donor programs are coordinated in local area working groups and have assisted the PA to strengthen key institutions, adopt a modern legal framework, develop road and water infrastructure, and provide social services for the disadvantaged.
Country Background Information Resources CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
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Last Updated on: November 17, 2000 |
