Palestinian Authority’s donation industry

Despite the now infamous and bogus international “chilling effect” on Muslim charitable giving due to allegedly harsh financial restrictions by Western governments, the Palestinian Authority is awash in donations from the West.

Donations made up 10 percent of the PA’s economy in 2000.  According to a new study, donations now make up over 60 percent of their economy.  Donations doubled within the past four years during a global recession.

This is also despite the successful prosecution of the Holy Land Foundation and sanctions against Union of Good (pro-Hamas) charities.  According to prominent Muslims, academics, and the ACLU, our CFT efforts are impoverishing poor Gazan children.  But in reality our overall foreign aid and charity policies actually appear to be enriching them.

From Ynetnews on Jan. 16 with a big tip of the hat to Israel Matzav:

More than 60% of the Palestinian Authority’s Gross National Product comes from the United States, European Union, United Nations, World Bank and others countries, according to a study conducted by economic analyst Eyal Ofer in cooperation with President of Financial Immunities consulting firm Adam Roiter.

According to the study’s findings, during 2009 and 2010 the PA’s reliance on donations increased – with a 20% growth in donations, totaling some $3.96 per year.

In real values, the scope of donations more than doubled within a period of four years.

The research, similarly to OECD reports, points to the PA’s steadily increasing dependence on donation funds. In fact, the Palestinian people receive the largest amount of donations worldwide.

For every Palestinian citizen, the PA receives an average of $1,000 per annum, which amounts to an average of ILS 2,000 (about $560) per family, per month. The data reinforces the claim that there is no Palestinian economy, and that in reality is almost exclusively supported by the donation industry.

Yes, an economy can be built from donations – if these are allocated for development, production and infrastructure, but this is not the case.

“The donations toward the entrenchment of government institutions instead of the development of infrastructure, industry, human capital etc’,” explained Roiter. “What we have here is a schnorrer [begging] country, without which it does not exist,” he added.

Ofer and Roiter noted that since 2000 – when the rate of donations reflected 10.47% of total GNP – there has been a steady increase in the scope of foreign donations. The most significant boost began in 2007, immediately after Hamas gained control of the Gaza Strip, and following the PA’s claim that it needed more funds to establish its regime…