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Palestinian Authority in Danger of Collapse: World Bank | ASHARQ AL-AWSAT English Archive 2005 -2017
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Palestinian Prime Minister Ismail Haniya addresses a press conference after his meeting with Palestinian President Mahmud Abbas (AFP)


Palestinian Prime Minister Ismail Haniya addresses a press conference after his meeting with Palestinian President Mahmud Abbas (AFP)

Palestinian Prime Minister Ismail Haniya addresses a press conference after his meeting with Palestinian President Mahmud Abbas (AFP)

JERUSALEM (AFP) – The donor-starved Palestinian Authority may cease to function if government employees continue to go without salaries for much longer, the World Bank warned in a new report.

Civil servants will simply down tools and discipline in the ranks of the security services could well collapse if pay cheques, which have not arrived for the last two months, are not forthcoming, the Washington-based body said.

The European Union and United States have both frozen aid payments to the Palestinian Authority since the radical Islamist movement Hamas took power over its refusal to renounce the use of violence or accept Israel’s right to exist.

Israel has also stopped handing over customs duties that it used to collect on behalf of the Palestinian Authority, worth around 60 million dollars a month.

A previous report by the World Bank last month had warned that the Palestinian economy would experience a dramatic decline but the new survey said that “these projections now appear too rosy”.

“If the PA (Palestinian Authority) remains unpaid/minimally paid for several months, it may cease to function,” the report said.

“Civil servants have already begun to withdraw their services in protest and this can be expected to intensify as personnel down tools and look for other ways to subsist.”

Institutional breakdown could undermine years of good work in a matter of weeks and prove extremely hard to rectify, it added.

“Complex structures such as school systems are not machines to be switched on and off at will,” the report said.

“A protracted period in which the PA is disabled might result in the unravelling of a dozen years of donor efforts to build the responsible, accountable institutions needed for a future Palestinian state or for continued governance ad interim.”

The World Bank said that there was already evidence that the security forces were prepared to take the law into their own hands in order to force the authorities to hand over cash.

“Non-payment, part-payment or unequal payment of salaries could precipitate breakdowns in force discipline in the security services,” the report said.

“A deteriorating security environment could make it difficult for government, commerce and relief efforts alike to operate properly.”

Palestinian Prime Minister Ismail Haniya addresses a press conference after his meeting with Palestinian President Mahmud Abbas (AFP)

Palestinian Prime Minister Ismail Haniya addresses a press conference after his meeting with Palestinian President Mahmud Abbas (AFP)

Palestinian Prime Minister Ismail Haniya leaves his meeting with Palestinian Authority President Mahmud Abbas in Gaza (AFP)

Palestinian Prime Minister Ismail Haniya leaves his meeting with Palestinian Authority President Mahmud Abbas in Gaza (AFP)