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Al Mezan holds a conference on the economic situation of the Palestinian territories... "Mechanisms and Opportunities to End the Crisis"

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8 May 2006 |Reference 41/2006

Al Mezan Center for Human Rights held a conference on May 5th to encourage an exchange of views on the economic situation of the Palestinian territories and explore possible mechanisms to end the crisis.
Representatives from NGOs, the Parliament (PLC), governmental ministries, academics, community figures and lawyers attended the conference.
Mr.
Issam Younis, Director of Al Mezan Center for Human Rights opened the conference; he welcomed the participants and stressed the importance of such a conference to define mechanisms to end the economic crisis and to create a space for specialists to exchange views on the situation.
In the first session, Dr.
Kamal Sharafi highlighted that the current crisis is not new, but rather it is due mostly to the current boycott of the Hamas- led Palestinian government by the international community.
Sharafi stressed the importance of unifying Palestinian efforts to end this dilemma.
On the other hand, Mr.
Ghazi Hamad, the Government Spokesman, stated that the crisis is principally a result of agreements signed between the PNA and Israel; most notably the Paris Protocol which laid the foundation for the dependency of the Palestinian economy on that of Israel; even donors supported this dependency in addition to PNA economic policies based on monopolies and lack of accountability.
Former PLC member Mr.
Saadi Krunz, clarified that there is no united treasury account for the entire PNA budget that includes private funds such as the Palestinian Investment Fund, which has led to the misuse of public funds and contributed to the economic and financial deterioration within the PNA.
Krunz highlighted the lack of coordination among governmental ministries, which has exacerbated deficiencies within the PNA and wasted public resources; he said accountability is the only way to deter corruption and embezzlement.
Dr.
Mukhaimar Abu Saada, professor of political science at Al Azhar University, opened the second session by raising a number of questions on mechanisms to end the economic and financial crisis: Is there a possible way to overstep the Paris Protocol? Or is it beneficial? What is the role of civil society and the private sector in ending the crisis? Minister of Economy, Mr.
Alaa Al Aaraj, said that the current crisis is but an outcome of the Paris Protocol; however he asserted that it is essential an in- depth study be undertaken should the Protocol be canceled or disregarded.
He spoke also of the exceptional importance of crossings when settling such issues with Israel; he spoke in reference to the agreement dated November 15th, 2005 under the supervision of USA and the Quartet, which was not complied with by Israel, resulting in the closure of Karni crossing during over 60 days over the last four months.
Mr.
Mohammad Saqallah, Executive Director of the Monetary Authority (MA), highlighted the three dimensions adopted by the MA in addressing the crisis.
First, it circulated on April 19th 2006 a statement in which it stated that all banks are to continue providing services; the second dimension is to deal with the decision by the Israeli Worker’s Bank to suspend dealing with Palestinians banks; the third dimension is related to salaries and transfers of funds, which the MA failed to secure.
Mr.
Issam Younis shed light on the role of NGOs which assist and complement the role of the PNA in providing services; he also asserted the effective role of NGOs confronting the misleading Israeli media regarding the Occupied Palestinian Territories (OPT), the required pressure by NGOs on donors to assist in halting the policy of collective punishment and lift the imposed siege on the Palestinians.
NGOs should also continue lobbying to show the devastating reality of the human rights situation and to exert pressure on Israel to end the siege and hand over PNA customs taxes that are being held by Israeli authorities.
Engineer Ali Abu Shahla exposed the role of private sector; the fact that Israeli control over crossings constitutes an obstacle in the way of investments, and the lack of organizational structure for the Gaza Strip and the West Bank or specification of industrial zones in the West Bank and Gaza Strip; he also referred to the increase of services' fees such as electricity and water.
Mr.
Tala Okal highlighted that international funding to the PNA is related to political references such as the Oslo Accords and the Road Map, and since these references are absent, funding will naturally be suspended.
Regarding the mechanisms to halt the economic crisis, Mr.
Okal gave two options: either to disband the PNA and maintain an open struggle, or a more realistic solution that is to reconstruct Palestinian institutions and policy which would create new political initiatives and thus throw the ball into the court of Israel and the international community.
Mr.
Karem Nashwan, on behalf of PLC member Jamil AL Majdalawi, called for the establishment of national dialogue and the search for a common divisor between Palestinian resistance and politics.
He also emphasized on the importance of vitalizing and developing the Palestinian Liberation Organization (PLO) and forming a national unified leadership until the PLO is rebuilt on a democratic basis.
Lastly, he called for public unions and professional syndicates to undertake their important role in ending the crisis.
The conference ended with the following recommendations drawn up: Unify the Palestinian political entity and end the struggle between government and presidency.
Immediately halt the state of insecurity and impose the law.
Reconsider, review or modify the bias of the Paris Protocol against the Palestinians.
Set a national plan to revitalize the Palestinian economy so as to guarantee land reform, eliminate monopolies and provide services such as fuel and electricity in order to revive industry.
Reconsider bank interests and re- organize private sector debts.
Adopt firm observation to protect public funds and bring to justice those found guilty of administrative or financial corruption; ensure that the embezzled PNA funding is handed over.
Devote careful attention to local produce in order to use it as a replacement for imports.
End.