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The Fayad Resignation: Scapegoating a State-Builder
(Washington Institute for Near East Policy) David Makovsky - The departure of PA Prime Minister Salam Fayad could be a blow to the Palestinians, particularly in terms of how much international aid they receive. Fayad became the PA's finance minister in 2002 upon demand by donor countries who were concerned that their contributions were being diverted for corruption. Before he took office, PA security personnel were paid via paper bags full of cash. Fayad insisted that every PA employee have a bank account and be paid on time. After Hamas took over Gaza in 2007, Fayad became prime minister and security cooperation with Israel became the norm. His tenure has been defined by institution-building, in which the PA built schools, health clinics, hospitals, paved roads and installed water pipes. In particular, Fayad's embrace of economic transparency - which included U.S.-led audits - was instrumental in attracting increased international aid. Fayad repeatedly warned that Abbas' statehood bids at the UN would spur Washington to cut off aid, and Israel to halt the transfer of Palestinian tax revenues. Nevertheless, he was blamed for the economic downturn that resulted. The writer is director of The Washington Institute's Project on the Middle East Peace Process.