World Bank says Palestinian Authority is able to establish state 18Sep10 September 19, 2010

Palestine Note -  18 September 2010

A World Bank report that was released on Thursday said that the Palestinian Authority (PA) is well-positioned to establish a state.

“If the Palestinian Authority (PA) maintains its current performance in institution-building and delivery of public services, it is well-positioned for the establishment of a state at any point in the near future,” said the World Bank in its report.

However, the report said that the PA will remain dependent on foreign aid unless it can attract private investment, Reuters news agency reported.

“Unless action is taken in the near future to address the remaining obstacles to private sector development and sustainable growth, the PA will remain donor dependent and its institutions, no matter how robust, will not be able to underpin a viable state,” the Bank said.

Also, according to the report, Palestinian spending remained within budget and tax collection rates were nearly 15 percent above projection. Growth is estimated at 8 percent this year, added Reuters.

The World Bank also approved a $40 million grant for budget support for the PA pointing out that they are facing a financing shortfall of between $300 million and $400 million in 2010.

This new grant will specifically support areas critical to a stable financial environment,” The Jerusalem Post daily reported quoting John Nasir, Lead Economist for the West Bank and Gaza Country Office.

“This includes the government’s fiscal position and its transparency and accountability,” added Nasir.

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