The increase depends the Palestinians and Israel taking steps toward reducing their conflict.
"The New York Times" on Friday quoted US and Palestinian officials as saying that the US, EU and Arab states were considering greatly increasing - maybe even doubling - aid to the Palestinians on condition that they and Israel take certain steps toward reducing their conflict.
The sources said a four-year package of $6-8 billion would be forthcoming if the Palestinian elections set for January 9 are successful and if the new government cracked down on militant groups and Israel lifted scores of roadblocks and checkpoints to ease the transit of goods and people in Palestinian areas.
The possibility of an aid increase was the subject of intense discussions at a donors meeting on December 8 in Oslo. According to participants, the aim of the meeting was to help moderate Palestinian leaders after the death of Yasir Arafat and to prepare for the fulfillment of Prime Minister Ariel Sharon's decision to pull settlers and forces out of the Gaza Strip and parts of the West Bank.
The World Bank says the package would be the largest per person international aid program since World War II. The Palestinians are already the world's largest per capita recipients of international aid, getting about $1 billion for 3.5 million inhabitants, or nearly $300 per person. The contemplated aid package would increase that amount by 50-100%.
Published by Globes [online], Israel business news - www.globes.co.il - on December 19, 2004