NGOs Strangle Palestinian Economy

And all this time, I thought it was just the occupation.

Tim Marshall of Sky News explains that the heavy flow of foreign aid — particularly through the UNRWA and non-governmental organizations — have addicted the Palestinians, “and as long as you are addicted you are in thrall to your supplier.”

Here’s one example of the thrall unintended consequences Marshall describes:

No Palestinian business can compete with NGOs which routinely triple what a local firm would pay. Many NGOs fork out ‘danger money’ and even ‘hardship payments’ to both local and international staff which further undermines the local private businesses. So the NGOs get the brightest and the highest paid, and the private firms get the rest but without the tax exemptions . . .

This is not to argue that NGOs are not required, many are, but they distort the situation and fundamentally the Palestinians cannot have properly functioning businesses, nor be fully independent until their leaders are partially weaned off their addiction to other peoples money.

But it’s easier to blame the occupation.

Read the whole thing.


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