Mr. Gareth R. ThomasTo ask the Secretary of State for International Development what action she is taking to encourage economic development in the Palestinian Authority areas. [1274]
§ Clare ShortThe UK is working within the middle east peace process to support the building of the Palestinian nation's ability to generate economic and social development that benefits the poor. DFID's support includes technical assistance to increase Palestinian capacity to negotiate with the Israelis on economic and other issues to build institutions and to improve health, education and water and sanitation services. DFID has recently approved a contribution of £1.5 million to the World bank's emergency employment generation programme to the West bank and Gaza Strip, aimed at protecting vulnerable groups from falling further into poverty.
However, economic and social benefits are being eroded by the continuing conflict. A report by the Office of the United Nations Special Co-ordinator for the period 28 September to 26 November 2000, estimated that confrontations, mobility restrictions, and border closures are costing the Palestinian economy at least US$8 million per day.