Optimism for Palestinians

JERUSALEM (AP) -- For the first time in four years, the donor nations that sustain the Palestinian economy have reason for optimism. For now, however, that optimism won't mean more money for the Palestinians.
The donor countries, which give the Palestinians hundreds of millions of dollars a year, will hold their annual meeting Wednesday in Oslo, Norway, against the backdrop of two hopeful changes: Israel's plan to withdraw from Gaza and new peace moves in the wake of Yasser Arafat's death.
There is a new sense of excitement in the donor community, which has expressed growing impatience with Israel and the Palestinians in recent years, even threatening to cut aid.
"I think there's a sense of hope that things could improve. Obviously, there will be a wish on the part of the donor community to support that," said Nigel Roberts, the World Bank's director for the West Bank and Gaza.
International aid is vital for the Palestinian economy ravaged by four years of fighting. Some 1.7 million Palestinians, nearly half the population of the West Bank and Gaza, live in poverty on less than $2.10 a day, according to the World Bank.
Foreign donors -- mostly the United States and European countries -- contribute some $900 million to the Palestinians annually, covering more than half the Palestinian budget. This comes to roughly $300 per person each year, an unprecedented level in the post-World War II era, according to the World Bank.
International assistance to the Palestinians is important for Israel as well; if it dries up, Israel could be forced to assume financial responsibility for the Palestinian areas.
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