Fearing the collapse of Palestinian Authority
Wed Dec 19, 2012 10:32PM
The fiscal crisis in the Palestinian Authority (P.A) has so far prevented it from paying its employees both in the West Bank and Gaza. Experts have warned of an unprecedented economic crisis in the Palestinian territory especially in the Gaza Strip after Israeli measure to put pressure on the Palestinian Authority following the declaration of Palestine as an observer state in the United Nations.Nearly one hundred and fifty thousand P.A employees still haven’t received their November salaries. The Palestinian Authority receive most of its finances from donor countries, the rest comes from tax collected on its behalf by Israel. After the declaration of Palestine as a nonmember observer state in the U.N. Israeli authorities refused to hand over money to the Palestinian Authority. Earlier this month the Arab League pledged to give a financial safety net to the Palestinian Authority in order to make up for punitive Israelis measures but none of that money has been forthcoming. Observers expect more Israeli punitive measures against Palestinians following the statehood declaration. The Palestinian Authority’s failure to provide salaries has had a very negative impact on Gaza's economy and the purchasing power for families in Gaza. Nowadays you can hardly find anyone shopping in Gaza’s stores. To add insult to injury for P.A employees is that acting Palestinian authority Prime Minister Salam Fayyad said that his government doesn’t even know when it will be able to provide salaries for its employees. Lack of salaries comes against the backdrop of the ailing financial status of the Palestinian Authority and the suffocating blockade imposed on Gaza. Experts believe that unless the Palestinian Authority receives urgent funds it will undoubtedly collapse.