How Most Aid to the Palestinians Ends up in Israel’s Coffers

Diplomats may have a reputation for greyness, obfuscation, even hypocrisy, but few have found themselves compared to a serial killer, let alone one who devours human flesh.

That honour befell Laars Faaborg-Andersen, the European Union’s ambassador to Israel, last week when Jewish settlers launched a social media campaign casting him as Hannibal Lecter, the terrifying character from the film Silence of the Lambs.

An image of the Danish diplomat wearing Lecter’s prison face-mask was supposed to suggest that Europe needs similar muzzling.

The settlers’ grievance relates to European aid, which has provided temporary shelter to Palestinian Bedouin families after the Israeli army demolished their homes in the occupied territories near Jerusalem. The emergency housing has helped them remain on land coveted by Israel and the settlers.

European officials, outraged by the Lecter comparison, have reminded Tel Aviv that, were it to abide by international law, Israel – not the EU – would be taking responsibility for these families’ welfare.

While Europe may think of itself as part of an enlightened West, using aid to defend Palestinians’ rights, the reality is less reassuring. The aid may actually be making things significantly worse.

Shir Hever, an Israeli economist who has spent years piecing together the murky economics of the occupation, recently published a report that makes shocking reading.



Like others, he believes international aid has allowed Israel to avoid footing the bill for its decades-old occuption. But he goes further.



His astonishing conclusion – one that may surprise Israel’s settlers – is that at least 78 per cent of humanitarian aid intended for Palestinians ends up in Israel’s coffers.

The sums involved are huge. The Palestinians under occupation are among the most aid-dependent in the world, receiving more than $2bn from the international community a year. According to Hever, donors could be directly subsidising up to a third of the occupation’s costs.

Other forms of Israeli profiteering have been identified in previous studies.

In 2013 the World Bank very conservatively estimated that the Palestinians lose at least $3.4bn a year in resources plundered by Israel.

Further, Israel’s refusal to make peace with the Palestinians, and as a consequence the rest of the region, is used to justify Washington’s annual $3bn in military aid.

Israel also uses the occupied territories as laboratories for testing weapons and surveillance systems on Palestinians – and then exports its expertise. Israel’s military and cyber industries are hugely profitable, generating many billions of dollars of income each year.

A survey published last week found tiny Israel to be the eighth most powerful country in the world.

But whereas these income streams are a recognisable, if troubling, windfall from Israel’s occupation, western humanitarian aid to the Palestinians is clearly intended for the victims, not the victors.

So how is Israel creaming off so much?

The problem, says Hever, is Israel’s self-imposed role as mediator. To reach the Palestinians, donors have no choice but to go through Israel. This provides ripe opportunities for what he terms “aid subversion” and “aid diversion”.
The first results from the Palestinians being a captive market. They have access to few goods and services that are not Israeli.

Who Profits?, an Israeli organisation monitoring the economic benefits for Israel in the occupation, assesses that dairy firm Tnuva enjoys a monopoly in the West Bank worth $60 million annually.

Aid diversion, meanwhile, occurs because Israel controls all movement of people and goods. Israeli restrictions mean it gets to charge for transportation and storage, and levy “security” fees.

Other studies have identified additional profits from “aid destruction”. When Israel wrecks foreign-funded aid projects, Palestinians lose – but Israel often benefits.

Cement-maker Nesher, for example, is reported to control 85 per cent of all construction by Israelis and Palestinians, including the supplies for rebuilding efforts in Gaza after Israel’s repeated rampages.

Significant segments of Israeli society, aside from those in the security industries, are lining their pockets from the occupation. Paradoxically, the label “the most aid-dependent people in the world” – usually affixed to the Palestinians – might be better used to describe Israelis.

What can be done? International law expert Richard Falk notes that Israel is exploiting an aid oversight vacuum: there are no requirements on donors to ensure their money reaches the intended recipients.

What the international community has done over the past 20 years of the Oslo process – inadvertently or otherwise – is offer Israel financial incentives to stabilise and entrench its rule over the Palestinians. It can do so relatively cost-free.

While Europe and Washington have tried to beat Israel with a small diplomatic stick to release its hold on the occupied territories, at the same time they dangle juicy financial carrots to encourage Israel to tighten its grip.

There is a small ray of hope. Western aid policy does not have to be self-sabotaging. Hever’s study indicates that Israel has grown as reliant on Palestinian aid as the Palestinians themselves.

The EU noted last week that Israel not Brussels should be caring for the Bedouin it has left homeless. Europe could take its own advice to heart and start shifting the true costs of the occupation back on to Israel.

That may happen soon enough whatever the west decides, if – as even Israel is predicting will occur soon – the Palestinian Authority of Mahmoud Abbas collapses.

http://www.counterpunch.org/2016/03/09/how-most-aid-to-the-palestinians-ends-up-in-israels-coffers/




Well, it's been said for years, but at least it's out in the open now.  Land theft, destruction of crop and stealing the aid, as well as not upholding it's obligations as an occupying force.

http://www.counterpunch.org/2016/03/09/how-most-aid-to-the-palestinians-ends-up-in-israels-coffers/

• Palestinian Authority (PA) Prime Minister Rami Hamdallah did not tell the visiting U.S. Congressmen that the $4.5 billion the Americans invested in promoting Palestinian democracy went down the drain or ended up in secret Swiss bank accounts. Nor did he tell the Congressman that the Palestinians do not have a functioning parliament or a free media under the PA in the West Bank or under Hamas in the Gaza Strip. And, of course, Hamdallah never told the Congressman that for Palestinians, presidential and parliamentary elections remain a remote dream.
  
• The refusal of the international community back then to hold Arafat accountable was the main reason a majority of Palestinians were driven into the open arms of Hamas. Palestinians saw no improvement in their living conditions, mainly as a result of the PA's corruption. That is why they turned to Hamas, which promised them change, reform and an end to financial corruption.
  
• The Americans and Europeans are therefore responsible for Hamas's rise to power.
  
• One does not have to be an expert on Palestinian affairs to see that the billions of dollars have neither created democracy for the Palestinians nor boosted the Israeli-Palestinian peace process. The "investment" in Palestinian democracy and peace with Israel has been a complete failure because of the refusal of the U.S. Administration to hold the Palestinian Authority fully accountable.
  
• Unless Western donors demand that the PA use their money to bring democracy to its people and prepare them for peace, the prospects of reviving any peace process will remain zero.
  

During the past 20 years, the U.S. has invested $4.5 billion in promoting democracy among the Palestinians in the West Bank and Gaza Strip and boosting the Israeli-Palestinian peace process.
This is what Palestinian Prime Minister Rami Hamdallah revealed during a meeting in Ramallah this week with Congressman Kevin McCarthy, Majority Leader of the U.S. House of Representatives.
Hamdallah said that the money was also invested in projects in various Palestinian sectors.
The $4.5 billion that Hamdallah talked about does not include the billions of dollars poured on the Palestinian Authority (PA) since its creation in 1994. Palestinian economic analysts estimate that the PA has received a total of $25 billion in financial aid from the U.S. and other countries during the past two decades.
One does not have to be an expert on Palestinian affairs to see that the billions of dollars have neither created democracy for the Palestinians nor boosted the Israeli-Palestinian peace process.
Twenty years later, the Palestinians still have a long way to go before they ever see real democracy in the West Bank or Gaza Strip.
To begin with, the Palestinian Authority, which was born out of the 1993 Oslo Accords between Israel and the PLO, was never a democratic regime. On the contrary; what the Palestinians got from the start was a mini-dictatorship run by Yasser Arafat and his PLO and Fatah cronies. It was a corrupt regime, was directly funded and armed by the U.S., Europe and several other countries.

President Barack Obama, accompanied by Palestinian Authority (PA) President Mahmoud Abbas, reviews the PA honor guard in Ramallah, March 21, 2013. (Image source: AFP video screenshot)

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Those who were funding Arafat's autocratic regime back then never cared about either democracy or transparency. They were pouring billions of dollars on the PA without holding its leaders accountable.
The result was that the Palestinians got a regime that not only deprived them of most of the international aid, but that also cracked down on political opponents and freedom of speech. The Palestinian Authority was actually a one-man show called Yasser Arafat; he and his cronies were the main benefactors of American and European taxpayers' money.
At the time, the assumption in the U.S., Europe and other countries was that a corrupt and repressive Arafat would one day make far-reaching concessions for the sake of peace with Israel.
Because he was on the payroll of the Americans and Europeans, the thinking went, Arafat would never be able to say no to any offer -- such as the generous proposal he received from then Israeli Prime Minister Ehud Barak at the botched Camp David summit in the summer of 2000. But when Arafat was finally put to test at Camp David, which was sponsored by President Bill Clinton, he walked out of the summit, accusing the U.S. of trying to force him to make concessions that no Palestinian would ever accept.
The billions of dollars that Arafat received between 1994 and 2000 from the Americans and the international community failed to convince him to accept the most generous offer ever made to the Palestinians by an Israeli prime minister. Even worse, the first seven years of the peace process resulted in the second intifada, which erupted in September 2000 -- a few months after the collapse of the Camp David summit.
The refusal of the international community back then to hold Arafat accountable was the main reason a majority of Palestinians were driven into the open arms of Hamas. Palestinians lost faith not only in the peace process, but also in the Palestinian Authority and its leaders. Palestinians saw no improvement in their living conditions, mainly as a result of the PA's corruption.
That is why they turned to Hamas, which promised them change, reform and an end to financial corruption. The Americans and Europeans are therefore responsible for Hamas's rise to power.
Until 2007, the Palestinians had only one corrupt and undemocratic regime, called the Palestinian Authority. Since then, the Palestinians have earned another regime that is even more ruthless and repressive: Hamas.
So if $4.5 billion brought the Palestinians two corrupt and undemocratic regimes, what would have happened had the U.S. and Europe invested a few more billion dollars in promoting Palestinian democracy? The Palestinians would most likely have seen the emergence of a few more dictatorships in the West Bank and Gaza Strip.
Of course, the Palestinian Authority prime minister did not tell the visiting U.S. Congressmen that the $4.5 billion the Americans invested in promoting Palestinian democracy went down the drain or ended up in secret Swiss bank accounts. Nor did he tell the Congressman that the Palestinians do not have a functioning parliament or a free media under the PA in the West Bank or under Hamas in the Gaza Strip. And, of course, Hamdallah never told the Congressman that for Palestinians, presidential and parliamentary elections remain a remote dream.
But, like most Westerners who visit Ramallah, Congressman McCarthy obviously did not ask harsh questions, especially regarding the Palestinians' responsibilities toward democracy and the peace process. The Congressman was undoubtedly glad to hear that the U.S. has invested $4.5 billion in Palestinian democracy and boosting the peace process. But did he and others ever ask whether and how the Palestinian Authority used those funds to advance these two goals?
One does not need to ask Palestinian Authority officials about the way they spent the American aid money because the reality on the ground is too obvious. The PA took the billions of dollars and continues to operate as a corrupt and undemocratic regime. Democracy is the last thing the Palestinians expect to see from the PA or Hamas.
And what has the Palestinian Authority done with the billions of dollars to advance the cause of peace with Israel? Has the PA leadership used this money to promote peace and coexistence with Israel? The answer, of course, is no. Instead of using American financial aid to further this cause, the PA has done -- and continues to do -- the exact opposite. In addition to inciting its people against Israel on a daily basis, the Palestinian Authority leadership has been using these funds to wage a massive campaign in the international community with the purpose of isolating and delegitimizing Israel and turning it into a pariah state.
The "investment" in Palestinian democracy and peace with Israel has been a complete failure because of the refusal of the U.S. Administration to hold the Palestinian Authority fully accountable.
Unless Western donors bang on the table and demand that the Palestinian Authority use their money to bring democracy to its people and prepare them for peace, the prospects of reviving any peace process in the Middle East will remain zero.[/size]

• http://www.gatestoneinstitute.org/6353/palestinians-us-aid
  

Israeli economist Shir Hever

An economy of disparities

In his book "The Political Economy of Israel's Occupation", the Israeli economist Shir Hever analyses the relationship between the economy and Israel's occupation of the Palestinian territories and its global impact.


A very interesting read for those after the truth