1. Financing Development In Palestine

2. An Overview: Types of Aid: Budget Support Humanitarian Aid
Relevant points:
Aid trends' changes (e.g. 2006)
Development down from 1/3 to 10%, while Humanitarian and Budget Support increased, for example, that of Budget Support (via TIM, ESSP, and support from Arab countries) increased from 1/3 to 70%
First obstacle – aid in Palestine is POLITICAL and is NOT solely based on Palestinian needs!
Types of Aid:
Budget Support
Humanitarian Aid
Development Aid

3. On The Road To Recovery “Palestine In The Driver Seat”
EFFECTIVE PLANNING
THE PALESTINIAN REFORM AND DEVELOPMENT PLAN
PRDP

4. The PRDP:
The PRDP is a comprehensive plan and budget for Palestinian reform and development. The PRDP initiative represents a major reform in its own right. Indeed it is one of the most significant institutional reforms ever implemented by the PNA. It is a vitally important step towards building effective policy-making, planning and budgeting grounded in the local context. Most importantly, it reflects the PNA’s commitment to Palestinian ownership of, and accountability for, the reform and development agenda.

5. PRDP – A Planning Tool In reality: Programs under each sector Projects
PRDP STRUCURE:
Economic
Governance
Infrastructure
Social
In reality:
Programs under each sector
Projects
Prioritization
Second obstacle:
Donor assistance pledged for the recurrent budget falls short of the PRDP’s needs

6. Aid Coordination Structure in the oPt
Status April 2008
Economic Strategy Group (ESG) Co-Chairs: Ministry of Finance / World Bank
Governance Strategy Group (GSG) Co-Chairs: Ministry of Planning / EC
Members: Palestinian Authority: MoP, MNE, MoA, PMA, OoP
Donors: EC, France, Germany, IMF, Netherlands, Norway, OQR*, Spain, UK, USA
Members: Palestinian Authority: PMO, MoF, MoI, MoJ Donors: Canada, Germany, Italy, Japan, OQR*, Netherlands, Norway, UK, USA, World Bank
Local Development Forum (LDF)
Co-Chairs: Ministry of Planning, Norway, World Bank, UNSCO
Elections2
Judiciary
Security
Private Sector Dev. & Trade
Fiscal
Agriculture
Public Administration & Civil Service
Task Force on Project Implementation (TFPI)1
Secretariat: LACS
EC, World Bank, USAID, UNSCO
Local Aid Coordination Secretariat (LACS)
Infrastructure Strategy Group (ISG) Co-Chairs: Ministry of Public Works & Housing / USAID
Social Development & Humanitarian Assistance Strategy Group (SHSG)
Co-Chairs: Ministry of Social Affairs / UNSCO
Members: Palestinian Authority: MoP*, MoLG, MoT, MoTIT, PWA, EQA, PEA
Donors: Belgium, Denmark, EC, France, Germany, Italy, Japan, Norway, Spain, Sweden, UNDP, World Bank
Members: Palestinian Authority: MoP, MoEHE, MoH, MoL, MoF
Donors: Canada, EC, France, Italy, Japan, Norway, Sweden, Switzerland, USA, OCHA, UNDP, UNRWA, World Bank
NGO Representatives: AIDA, PNGO
Water & Sanitation
Municipal Dev. & Local Gov.
Energy2
Health
Education
Social Protection 6
Sector Working
Groups (SWG)
© LACS 6

7. Obstacles & Challenges:
Delays in implementation of projects
Lack of security in the WB and Gaza strip
The political situation in the oPt affects the ability of the PNA to coordinate effectively between the national and the local level, esp. in infrastructure-related projects
Hesitation on the part of some donors to engage in large-scale projects
Israel has tightened restrictions on movement and access based on security concerns, and settlements in the West Bank have expanded, with attendant risks to economic growth and reforms
Unemployment and poverty remain high, especially in Gaza, along with a rise in inflation

8. Lessons Learned:
Continuous communication with Line Ministries and pertinent organisations about their emerging needs via the use of an efficient Aid coordination Structure
Emphasis on the definition of a “Pledge” vs. “commitment”
Clear distinction between “disbursements” & “commitments”
Large portions of “commitments” go to Technical Assistance, and donor expenditure
Prioritize