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Palestinians Realize Downsides of Foreign Aid Boom
(Christian Science Monitor) Shira Rubin - Palestinians are among the largest per capita consumers of foreign aid worldwide. While desperately needed, the billions of dollars flooding in from overseas since 1994 have also caused economic productivity to plummet by flooding Palestinian markets with imported goods. A recent World Bank report asserts that foreign aid has caused long-term damage to the Palestinian economy. In cosmopolitan Ramallah, a construction boom and cappuccino-fueled culture of luxury cars and inflated real estate suggest an economic upswing. But experts warn that the growth is fostered largely by foreign donations to the PA, and the profusion of NGOs setting up shop in the de-facto capital has created a bubble - hollow and unsustainable.