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| Norwegian Foreign Minister Espen Barth Eide [FILE PHOTO] |
Norway's foreign
minister Espen Barth Eide, who chaired the meeting, said the Palestinians'
economic situation "is dire and is getting worse".
The Palestinian Authority has implemented austerity
measures that have been met with anger by a frustrated public facing rising
fuel and food prices and staggering unemployment.
Last week, the World Bank and the
International Monetary Fund issued a report that says the Palestinian financial
crisis will continue to worsen unless foreign funding increases and Israel
eases restrictions on economic activity. The two agencies say the
Palestinian Authority faces a shortfall of about $400 million this year.
Palestinian
Authority however presented a report to nations providing it with financial
assistance that claims the two-state solution is in jeopardy because the
current stagnant diplomacy is “unsustainable”.
Israel circulated a report of
its own highlighting what it argues are tangible steps aimed at shoring up the
fragile Palestinian economy.
Nabeel Kassis said the
authority needs money to function to prepare for statehood, noting that donors
who pledged 300 million US dollars (£185 million) have not paid up.
He also urged the
international community to go beyond expressions of support and take action to
create "the political horizon" to quickly end the decades-old
Israeli-Palestinian conflict.
Kassis spoke after
a meeting of 27 donor nations, global financial institutions and
representatives of the Quartet of Mid East peace mediators - the UN, US,
European Union and Russia.
The money is an advance payment of tax
revenues. She said Israel has also arranged for the transfer of goods and
allowed projects to be implemented in Area C that will generate more income for
the Palestinians.