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04/15/2006:

"'Democracy' at work"

International aid freezes threaten to strangle the democratically elected Hamas-led government.

Young engineer Nassar Odwa from the Ministry of Local Government waits patiently for hours to meet Abdul-Aziz Duwaik, the new Hamas parliament speaker. Odwa, in charge of urban planning projects that Norway abruptly cancelled after the Hamas-led government took power, wants to hear the alternatives for desperately needed infrastructure projects that would, for one, ameliorate the raw sewage problem reeking through Gaza. And he's not the only one in search of answers.

Indeed, tension is mounting in the Gaza Strip as Palestinians are preparing for an economic freeze after the Untied States and European Union slashed their assistance to the new Palestinian government, stocking up on food supplies and fuel in anticipation of stalled paychecks coupled with commercial borders closures by Israel. Meanwhile, sustained Israeli air raids and artillery bombardments took 15 Palestinian lives and injured dozens just over last weekend.

On Friday US Secretary of State Condoleezza Rice announced: "Because the new Hamas-led Palestinian government has failed to accept the Quartet principles of non- violence, recognition of Israel and respect for previous agreements between the parties, the US is suspending assistance to the Palestinian government's cabinet and ministries." The EU followed suit on Monday suspending direct aid to the PA, including crucial budgetary funding used for infrastructure projects and to cover the salaries of over 150,000 PA employees, affecting nearly a third of the population. EU External Relations Commissioner Benita Ferrero-Waldner said Europe will continue to provide funds so that "basic human needs will be met". The EU aid will remain frozen for at least a month.

Several EU nations, including Britain, Denmark and the Netherlands have already frozen their aid to the new government and more may follow. Aid from the EU and its 25 member nations averages $615 million per year, about half of which has been suspended. The EU decision to freeze payments affects an immediate instalment of $36.5 million, compounding an already dire financial situation for the Palestinian government. Canada, Norway and other non-EU member nations have also cancelled funding.

Hamas has condemned the suspension of American and European assistance. "We are being punished. Is this democracy?" Duwaik told Al-Ahram Weekly. "The results of the 25 January elections showed the world that we are not convinced with this whole process. We would like to change the rules of the game so that our national rights are recognised, our well being is recognised and our basic human rights are recognised. If we give Israel recognition, they will give us a piece a paper, just put it in water and swallow it," he said.

Meanwhile the US will increase its basic humanitarian assistance to Palestinians by 57 per cent, bringing it to a total of $245 million. Some $65 million will be reserved for emergency food programmes, mostly distributed by the United Nations World Food Programme, $31 million for health programmes, $14 million for education programmes, and $135 million for the UN Relief and Works Agency (UNRWA). More controversially, $42 million are being allocated to so-called democracy building expansion. Palestinians have largely interpreted this as an effort by the US to create an opposition to Hamas. Assistance will be administered through non-Palestinian Authority entities, including local and international non-governmental organisations. $45 million in direct assistance to the PA has been cancelled, along with the suspension of $359 million worth of other programmes.

US Consul-General in Jerusalem Jack Wallace told Palestinian journalists at his residence: "We will not have any contact with the PA or any of its ministries. However we will continue to work closely with President Mahmoud Abbas." Assistant Secretary of State David Welch said the decision of whether to channel fund to Abbas directly or not will be made in the future. Responding to queries as to why the US has made no effort to meet Hamas to find out their intentions, he replied: "You are right. We have had no contact with them, and that is part of the policy we established. It also reflects American law." Hamas, for its part, remains amenable to negations with the US.
weekly.ahram.org