Magazine

The struggling Palestinian economy

A sharp decline in international donations means Israel is digging deeper in its pockets to bail out the PA.

PA security officers stand in front of protesters
Photo by: Darren Whiteside / Reuters
The Palestinian Authority (PA) is facing a severe financial crisis. It is finding itself in substantial arrears in paying suppliers, and during 2012, Israel twice transferred advance payments to the PA to allow Authority employees’ salaries to be paid on time. In the past few weeks the PA’s financial difficulties were brought to fore through a number of strikes and riots across the West Bank - triggered by substantial rises in living costs and taxes.

These popular protests were targeted at first at Salaam Fayyad, the embattled prime minister, and were subsequently broadened to include Palestinian President, Mahmoud Abbas.  Protesters have now begun demanding that both officials resign.



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