Despite the boycott, donations to the PA tripled in 2006. Haaretz writes:
Donations to the Palestinian Authority almost tripled last year as a result of the international boycott of the Hamas government, according to a report published this month by the United Nations Office for the Coordination of Humanitarian Affairs (OCHA). Aid in 2006 totaled $900 million, up from $349 million a year earlier.
The boycott meant that most countries refused to channel money directly to the PA, and Israel refused to transfer the tax revenues it collects on the PA’s behalf.
However, Arab and Western nations continued and even increased their donations, channeling them through either a “Hamas bypass” mechanism known as the Temporary International Mechanism (TIM), or the office of PA Chairman Mahmoud Abbas.
Claims that the boycott causes poverty don’t hold water. The West is clearly boycotting Hamas, not the Palestinian people. The poverty of the Palestinians is that their leaders who the West deals with can’t even do diddly-squat with $900 million.