World Bank approves $90m to boost Palestinian economic conditions

The World Bank recommended today the allocation of $90 million to accelerate much-needed economic welfare for the Palestinian people, an increase from its annual disbursement of $55 million.

The funds, in the form of grants, will be transferred from the Bank’s own income to the dedicated Trust Fund for Gaza and West Bank.

Ferid Belhaj, World Bank vice president for the Middle East and North Africa, said: “Fragility and conflict constitute one of the most pressing challenges to sustainable development, however, inaction significantly increases the potential for unrest and downturn of human development.

“We recognise that the full potential of the economy will not be achieved without a political settlement.

“Yet, more can be done to support the well-being of the Palestinian people who have faced more than a decade of stagnant growth and stubbornly high unemployment.”

According to the World Bank, 30% of the Palestinian population is unemployed and in Gaza half of the population are without jobs.

The Washington-based organisation said it is looking to foster new economic opportunities, private investment, and hence to create jobs.

In June, the bank also allocated a $3m grant to fund a project that improved public financial management in the West Bank and Gaza in an effort to drive private investment.