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Canada to help with Palestinian rebuilding costs
National Post ^ | 4/9/02 | Steven Edwards

Posted on 04/09/2002 1:01:34 PM PDT by truthandlife

Canada and other countries that have given millions of dollars to build roads, water systems and other infrastructure for Palestinians in the West Bank and Gaza Strip are being asked for millions more to help rebuild a shattered Palestinian economy.

The Canadian International Development Agency, which channels the bulk of Canada's overseas aid, is attending international donor meetings in the region aimed at raising at least US$1.7-billion in emergency funds this year for the territories.

The World Bank produced the figure to cover the "worst-case-scenario" of a military incursion into cities ceded to the Palestinian Authority under the Oslo Peace Accords begun in 1993.

But with an Israeli military operation well into its second week, the amount may yet be raised.

"We need to take a look at that again in the light of how long this phase lasts," Nigel Roberts, head of the World Bank's Gaza and West Bank programs, said in an interview from Jerusalem. "It depends on how much more damage is done over the coming days and weeks."

The World Bank has pegged physical damage in the territories at US$300-million from September, 2000, when the recent intifada began, to the end of 2001.

Mr. Roberts estimated an additional US$100-million in damage to Palestinian Authority buildings and other infrastructure since Israel launched Operation Defensive Shield following increasingly frequent suicide attacks on Israeli targets. "You can' tell right now because nobody has access to the areas," he said.

If the peace process had resumed this year amid relative calm, the World Bank call for emergency aid would have been US$1-billion -- considerably less than is being sought, Mr. Roberts explained.

The Palestinian economy has been in sharp decline since the renewed intifada began. To contain violence, Israel stepped up border closures or checkpoint searches in and around the territories.

The measures, tightened or relaxed in response to security concerns, delayed or prevented many of the 3.4 million Palestinians in the territories from reaching workplaces, and slowed the shipment of goods.

"Any significant recovery of the Palestinian economy requires ... checkpoints [to] be dismantled and border restrictions eased," says World Bank report released last month. It estimates the economy has lost US$3-billion in the last 18 months.

North American, Western European and Arab countries have provided most of the US$4.5-billion in aid since 1993.

Although the immediate concern is to see violence reduced and to respond to a looming humanitarian disaster for Palestinians, Mr. Roberts said "donor frustration" at having to re-finance projects is expected to grow.

"Before last week, the European Union estimated the amount of damage done to its projects such as roads, the port and airport in Gaza, and water and electrical systems," said Mr. Roberts. "They have written to the Minister of Foreign Affairs in Israel expressing their concern."

But he remained optimistic new aid would arrive. "As long as there is a prospect of a resolution and of a Palestinian state at the end of the day, my belief is that donors will remain engaged."

Canada has given US$140-million since 1993 for peace and development projects in the territories, and also for humanitarian needs of the four million Palestinians throughout the region listed with the UN as refugees.

"We expect in the next few weeks to announce new aid in response to new appeals," said Dominique Hétu, a spokeswoman for CIDA.

Mr. Roberts and Terje Roed-Larsen, UN Middle East envoy, appealed last week for Israel to spare the Palestinian Authority, saying it had "provided basic essential services under very adverse conditions" during the last 18 months.

Destroying it would deny international donors their "main channel of assistance to the Palestinian people" said their joint statement.

In Canada, a Department of Foreign Affairs directive forbids handing Canadian funds directly to the Palestinian Authority, which has been accused over the years of corruption.

Canadian aid is channelled principally through approved non-governmental organizations, UN agencies, or local authorities.

Grants have included US$3-million to help Gaza Municipality provide water and sanitation; US$2-million for the Palestinian Housing and Mortgage Corporation; and US$2.6-million for job training for Palestinian women.

Following a withdrawal of Israeli forces, Mr. Roberts said emergency funds and US$500-million core development aid "would enable things like budget support for the Palestinian Authority, a fund for delivering services, repair of infrastructure, support for the private sector and a basket of funding for unemployment and welfare programs."

Even before the military offensive, the World Bank estimated checkpoints had tripled journey times, and prevented up to four-fifths of Palestinians with jobs in Israel from reaching work.

"These are very pressing problems that ... are intensified as a result of what has happened over the last week," said Mr. Roberts.

Up to half of the Palestinians in the territories live on US$2 a day, the World Bank report says.

Over the last 18 months, the standard of living of many Palestinians has contrasted ever more sharply with that attained by most of the 200,000 Jewish settlers in the territories, adding to resentment. The settler economy along with that of Israel is also under pressure, and settlers must travel under heavy guard.


TOPICS: Business/Economy; Canada; Extended News; Foreign Affairs; Israel
KEYWORDS: canada; palestians

1 posted on 04/09/2002 1:01:34 PM PDT by truthandlife
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To: truthandlife
Talk about throwing money down a rathole....
2 posted on 04/09/2002 1:03:18 PM PDT by Catspaw
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To: truthandlife
AAAAHHHHHHH...its enough to make me renounce my Canadian citizenship!
3 posted on 04/09/2002 1:07:43 PM PDT by art vandelay
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To: Catspaw
I suppose that none of that money will go into Arafat's pocket?
4 posted on 04/09/2002 1:07:52 PM PDT by ozdragon
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To: Catspaw
Well it's their money.

I suppose it does some good in supporting the extremely tenuous sense of self-esteem the Canadians feel in international circles.

5 posted on 04/09/2002 1:09:05 PM PDT by billorites
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To: ozdragon
I suppose that none of that money will go into Arafat's pocket?

Oh, of course not. Isn't there a "skim tax" on non-Moslem money coming into Arafat's pockets...er...the Palestinian Authority coffers?

6 posted on 04/09/2002 1:12:58 PM PDT by Catspaw
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To: truthandlife
Why not, Canada is oh-so good even-handed. CIDA bankrolls another AL_Qaida ally, Albanian KLA and their front for heroin smuggling(bakeries etc.)so why not "Palestinian" terrorists.
7 posted on 04/09/2002 1:18:21 PM PDT by DTA
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To: truthandlife
North American, Western European and Arab countries have provided most of the US$4.5-billion in aid since 1993.

Up to half of the Palestinians in the territories live on US$2 a day, the World Bank report says.

There are only about 3 million Palestinians in the territories. With a median income of $2 a day, $4.5 billion seems really high.

I think the Palestinians need to open their books and show the world how the money is spent before they ask for any more.

8 posted on 04/09/2002 1:22:51 PM PDT by Tai_Chung
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To: billorites
AS USUAL I am totally DISGUSTED AND EMBARASSED by the French Freak that dictates over this Country. I am APPALLED as always. Being from British Columbia, I feel it would be a good idea if the Ontario and Quebec Conservatives (if there are any), come out west and then we can just blow those two Provinces off the map. Would improve the Country immensely.!! Lynn
9 posted on 04/09/2002 1:30:44 PM PDT by Canadian Outrage
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To: truthandlife
What the...

How about letting all those loudmouth middle-east leaders help out? This is shameful!

10 posted on 04/09/2002 1:43:23 PM PDT by DoughtyOne
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To: Tai_Chung
"I think the Palestinians need to open their books and show the world how the money is spent before they ask for any more."

And all the lefties will start whining "who are you to ask for them to show you their books?!!"

11 posted on 04/09/2002 1:44:15 PM PDT by Corporate Law
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To: truthandlife
The measures, tightened or relaxed in response to security concerns, delayed or prevented many of the 3.4 million Palestinians in the territories from reaching workplaces, and slowed the shipment of goods.

"Workplaces" in Israel ... Israel provides the jobs for the Palestinians. Let them find work elsewhere. Israel produces goods ... the Pals just suck off the generosity of the "producing" world's populace.

What do the Palestinians produce besides terrorism and more mouths to feed?

12 posted on 04/09/2002 2:03:19 PM PDT by ~Peter
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To: truthandlife
Gee, is Canada going to replenish the Pali stocks of explosives and detonators too? At $150 (US) a "pop" it adds up fast.
13 posted on 04/09/2002 2:06:32 PM PDT by colorado tanker
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Comment #14 Removed by Moderator

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