Over the next three years the German government will be contributing 200 million euros to economic reconstruction efforts in the Palestinian territories, Federal Development Minister Heidemarie Wieczorek-Zeul announced in Paris.
This pledge is designed to encourage the Israeli-Palestinian peace process, which has been given a new lease of life thanks to the Middle East peace talks in Annapolis, USA. Specifically, the German government aims to improve living conditions in the Palestinian territories and give the people there genuine prospects.
Massive need for assistance
The situation in Gaza and the West Bank is serious, according to the report prepared for the Paris conference. Since 1999 per capita income has dropped by 40 percent, and in 2006 was only 1,130 dollars a year. Unemployment currently stands at 23 percent.
The Palestinian President, Mahmud Abbas, has presented a reform and development plan, which would require 5.6 billion dollars over the next three years. With this money the infrastructure is to be developed the drinking water supply improved and more done for health and education.
Various programmes, however, also address the problem of economic development, with a view to reducing unemployment and laying a sound foundation for a future Palestinian state.
Support should be as direct as possible
The German government will be providing 200 million euros for this development plan. German cooperation with the Palestinian Authority concentrates on projects that benefit the Palestinian people.
The focus is to be on employment programmes, schools and putting in place water supply systems and sewage plants, stressed Heidemarie Wieczorek-Zeul at the international donor conference. In Paris, politicians from 90 nations are currently meeting to agree on a common approach.
This assistance cannot take the place of a political solution in the long run, however, the minister pointed out. The World Bank report shares this point of view. If Israel does not loosen its restrictions on trade and freedom of movement, the Palestinian economy will continue to shrink the World Bank warns.
The German government is thus expressly supporting the peace talks between Israel and the Palestinian Authority, which were reconvened on 12 December this year.
Progress on the political front vital
Federal Foreign Minister Frank-Walter Steinmeier has repeatedly drawn attention to the mutual influence on political progress and economic recovery. "Israelis and Palestinians must see a tangible improvement in their security and economic situation thanks to the resuscitation of the peace process," he declared.
In response to a German initiative, the EU adopted a plan of action in October. This is designed to strengthen the economy and state structures in the Palestinian territories. For the coming year the EU has pledged 448 million euros.