[5] In 2006, economic sanctions and other measures were taken by several countries against the PA, including suspension of international aid following Hamas' victory at the Palestinian Legislative Council election.
[7] The international community has sent billions of dollars in aid to the Gaza Strip to provide relief to the more than 2 million Palestinians living there.
Before the signing of the Oslo Accords, international aid for the West Bank and Gaza came mainly from Western and Arab states, mostly through UN agencies such as UNRWA.
[11] Although the stance of the donors during the pre-Oslo period is regarded by some analysts, such as Rex Brynen, as controversial and linked with phenomena such as corruption, nationalism and factional rivalries,[12] International aid effectively financed a series of programs in the sectors of agriculture, infrastructure, housing and education.
[13] The Oslo Accords, officially signed[14] on September 13, 1993, contained substantial provisions on economic matters and international aid: Annex IV of the Declaration of Principles (DoP) discusses regional cooperation and implicitly calls for major international aid efforts to help the Palestinians, Jordan, Israel and the entire region.
[15] On October 1, 1993, the international donor community (nations and institutions[16]) met in Washington to mobilize support for the peace process, and pledged to provide approximately $2.4 billion to the Palestinians over the course of the next five years.
[18] Therefore, the donors had two major goals: to fuel Palestinian economic growth and to build public support for negotiations with Israel.
[25] According to a more critical approach, international aid in the mid-1990s supported PNA's bureaucracy[26] and belatedly promoted the centralization of political power, but in a way that did not enhance government capacity and harmed the PNGOs.
[28] In 1996, the link between development assistance and the success of the peace process was made explicit by the President of the World Bank, James Wolfensohn, who stated: "The sense of urgency is clear.
[33] After 1997, the need for donor support for the current budget and employment generation programs receded due to the PA's improved fiscal performance, and attention was focused instead on infrastructures to the detriment of institution building.
[36] The precipitator of this economic crisis was again a multi-faceted system of restrictions on the movement of goods and people designed to protect Israelis in Israel itself and in the settlements.
[39] The Quartet also urged Israel and the PNA to fulfill their commitments arising from the Road map for peace, and the international community "to review and energize current donor coordination structures [...] in order to increase their effectiveness.
[40] Although a mild positive growth returned in 2003 and 2005, this fragile recovery stalled as a result of the segmentation of the Gaza Strip, the stiff restrictions on movements of goods and people across the borders with Israel and Egypt, and the completion of the Israeli West Bank barrier.
[41] As the World Bank stressed in December 2005, "growth will not persist without good Palestinian governance, sound economic management and a continued relaxation of closure by GOI.
[45] Because of the worsening humanitarian crisis, the EU proposed a plan to channel aid directly to the Palestinians, bypassing the Hamas-led government.
[46] Oxfam was one of the main critics of the EU TIM program arguing that "limited direct payments from the European Commission have failed to address this growing crisis.
"[47] The emergence of two rival governments in the West Bank and the Gaza Strip in June 2007 presented the international community with the prospect of shouldering a huge aid burden.
[48] The World Bank estimated that in 2008 the PNA would need $1.2 billion in recurrent budget support, in addition to $300 million in development aid.
[56] The World Bank assesses that the PA had made significant progress on implementing the reform agenda laid out in the PRDP, and re-establishing law and order.
[57] Following the 2008–2009 Israel–Gaza conflict, an international conference took place in Sharm El Sheikh, Egypt, where donors pledged almost $4.5 billion for the reconstruction of Gaza.
[60] In July 2010, Germany outlawed a major Turkish-German donor group, the Internationale Humanitaere Hilfsorganisation (IHH) (unaffiliated to the Turkish İnsani Yardım Vakfı (İHH))[61] that sent the Mavi Mamara aid vessel, saying it had used donations to support projects in Gaza that are related to Hamas, which is considered by the European Union to be a terrorist organization,[62][63] while presenting their activities to donors as humanitarian help.
[76][77] In 2007, Israel, the Quartet on the Middle East (comprising the United Nations, the United States, the European Union, and Russia) and other countries ceased providing aid to the PA Hamas-led government that refused to accept the conditions set by them, and imposed sanctions against the PA. After Hamas took control of the Gaza Strip and a non-Hamas government installed in the West Bank, the sanctions against the PA administered West Bank were withdrawn and donations resumed.
[82] The Ad Hoc Liaison Committee (AHLC) was established in November 1993 to coordinate donor donations and in an effort to balance competing United States and European positions, to facilitate agenda-setting, reduce duplication, and foster synergies.
[83] The AHLC operates on the basis of consensus, and aims at promoting dialogue between the partners of the "triangular partnership", namely the donors, Israel and the Palestinian Authority.
The report claimed that, since 2001, Israel had destroyed around 150 development projects, which incurs the EU a financial loss of approximately €58 million.
The Monitor called for an investigation on all destroyed structures built with funding from the UN, EU or member states on Palestinian land.
In addition, the Monitor recommended continued investing in Palestinian development, but substantively penalize the Israeli government when UN- or European-funded projects are targeted.
[112] The same day, the World Health Organization stated there were only "24 hours of water, electricity and fuel left" before "a real catastrophe".
Some Western Islamic charities have channeled money to Hamas-related social service groups, causing the U.S. Treasury to freeze these assets.