[Washington Institute for Near East Policy] Mohammad Yaghi - Despite a three-year $7.5 billion assistance pledge from the 2007 Paris donor conference, the PA remains in a financial crisis, with a projected shortfall of $400 million for the second half of 2008. If pledged funds do not arrive soon, Salam Fayad's government will have difficulty remaining in office. Furthermore, a PA budget crisis will likely allow Hamas to further consolidate its control of Gaza, since the PA has remained relevant there only because it continues to pay 77,000 employees. Increased Arab support for the PA could easily solve this budget crisis. Yet while such assistance is well within the financial means of the Gulf States, it remains unlikely to materialize, given their hesitancy to appear to be taking sides in the ongoing conflict between Fatah and Hamas.
2008-08-05 08:00:00Full ArticleBACK Visit the Daily Alert Archive