BICOM

Yesterday the World Bank gave a strong endorsement on to Palestinian efforts to set up an independent state, saying that the core Palestinian institutions compared favourably with other established nations. “The Palestinian Authority (PA) has continued to strengthen its institutions delivering public services and promoting reforms that many existing states struggle with,” the World Bank report stated.

The World Bank report follows a similar vote of confidence this week from the International Monetary Fund, with both bodies praising the PA for creating the structures needed to maintain a sovereign state. The World Bank, which offers advice and resources to developing nations, also listed some Palestinian successes, notably in health and education. A relative calm has settled over the Palestinian territories over the past two years, providing an improved economic environment, with growth of 9.3% last year. However, the World Bank did indicate that this strong performance did not appear to be sustainable as it was mainly driven by donor aid. It also said unemployment of 16.9% in the West Bank and 37.4% in Gaza was too high. Although the report indicated that poverty was a problem, it concluded that: “The PA’s performance to date, however, bodes well for the future.”

Palestinian Prime Minister Salam Fayyad, a former World Bank economist, launched a two-year plan in 2009 to construct the framework of a state by mid-2011 and has previously said he will meet this goal.