Monday, December 17, 2007

Donor's conference for Palestinian aid

This week sees the gathering of the international community to garner support for a $5.6 bill package of aid for the Palestinians. I really wonder if anyone on Wall Street would consider investing in a company with such a proven track record of failure?

Although Tzippi Livni, the Israeli Foreign Minister said “We certainly support the strengthening of the PA and the appropriate international mobilization in order to bring about an improvement of the Palestinian residents' daily lives, especially by upgrading their own economic infrastructure that will not be dependent on the State of Israel once the appropriate administrative institutions are established.”, I wonder how much of the petro dollars will be “gifted" to the Palestinians. Further even if an Arab country pledges a contribution, according to past history, there is no guarantee the money will actually be paid.

It is interesting to note from the graph that as donations to the Palestinians increase, so the GDP goes down. Now one has to ask the question, yet again, just where is all the money going if not to create jobs, infrastructure, institutions etc? And what did happen to those greenhouse industries inherited from Israel after withdrawing from Gaza. What happened to those industrial zones that were to be created to provide employment opportunities?

The chart below perhaps gives some of the answer. Just imagine, reader, wherever you live in which ever country, just imagine a missile landing in your neighbourhood every 3 hours over the period of the last two years. Imagine just how you would react?

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