The International Conference in Support for the Palestinian Economy for the Reconstruction of Gaza

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Excellencies, ladies and gentlemen,

Let me thank Egypt and President Mubarak for convening this conference in support of the Palestinian people.

It is time to put people before politics – as we are doing here today.

I would also like to thank my colleague Ahmed Aboul Gheit for inviting Norway to co-chair the working sessions at this conference.

The purpose of our efforts today is to mobilise resources for the Palestinian people and to support the reconstruction of the war-torn Gaza Strip.

My main message is that we must place the Palestinian Authority (PA) at the centre of our efforts.

Prime Minister Fayyad will present the PA’s Gaza Early Recovery and Reconstruction Plan shortly. In my view, this plan should be the point of reference for our pledging here today.

For our part, we will stand by the three-year pledge Norway made at the Paris Conference - which since then has been increased by 10 per cent.
 
I saw the destruction in Gaza on my way to this conference. Civilian infrastructure, including schools and hospitals, entire industrial zones, Gaza’s private sector, large residential areas - much of it simply razed to the ground.

Israel has an inherent right to self-defence. No democratic state can live with rockets raining down on its cities.

But in defending itself, Israel has no right to launch such disproportionate attacks. And Israel bears a heavy responsibility for the impact of months and months of closure.

The military rationale for some of the destruction is highly questionable. We fully support the UN Secretary General’s investigation into the responsibility of both sides.

We have witnessed war. Yet the political issues under negotiation are the same as before. The people of Sderot are still not secure. People in Gaza continue to live in misery. We are reminded that there is no lasting military solution. Only a political settlement – among Palestinians and between Palestinians and Israelis – will do.

This conference must send a clear message and call on Israelis and Palestinians to come down squarely on the side of negotiations and the peaceful pursuit of the two-state vision.

Our message should be that if the parties do their part, we as donors will be there for them, once again. Development assistance can provide stability and support for a political process.

From Israel, we need to hear the next government reiterate its sustained commitment to a two-state solution, adherence to the Road Map and fulfilment of other obligations.

A credible, good-faith effort requires an effective and total freeze on settlement construction on occupied land, including East Jerusalem. Negotiations while settlement expansion continues will undermine any Palestinian partner in peace – and with him any hope of ending the conflict.

From the Palestinians, we seek one addressee, one Palestinian Authority, one partner that is effective in its pursuit of a final settlement through negotiations.

Violence and terror against civilian Israelis will undermine any Israeli partner in peace.

As chair of the donor group – the Ad Hoc Liaison Committee (AHLC) – Norway has one consistent message: our efforts as donors must focus on bolstering the PA. The PA is the only possible foundation for Palestinian statehood – and must be protected and supported.

I commend Egypt for its tireless efforts to mediate Palestinian reconciliation, as well as the involvement and support of other Arab and regional states.

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Let me conclude with a few specific messages in my capacity as Chair of the AHLC donor group and outline the next steps on our agenda.

The AHLC, as tasked by UN Security Council resolution 1860, has a key role in the coordination of assistance to the Palestinian Territory and in the reconstruction and long-term development of Gaza.

Only the AHLC can today facilitate the required three-party cooperation and coordination between the Palestinian Authority, Israel and the donor community.

After this conference we need to coordinate the pledges and other donor contributions and ensure that we act in accordance with key principles of good donorship.

For this reason Norway will call a meeting of all members of the AHLC on 1 April. This meeting should address the following main issues: 

First, supporting the Palestinian Authority based on our common understanding that Gaza is an integral part of the Palestinian Territory.

The PA’s Gaza Early Recovery and Reconstruction Plan – as presented during this morning’s session - is our common guideline.

Second, we need to address important challenges that impede the proper functioning of the Palestinian economy. And we must not forget the West Bank.

Cash transfers must be fully resumed, allowing the PA to pay salaries to its employees and allowing banks to issue investment loans to individuals.

Israel must open all crossings into Gaza for commercial goods, as well as humanitarian assistance. Implementation of the Agreement on Movement and Access (AMA) is required to pave the way for local development and private sector growth.
 
Third, as donors we should use existing mechanisms to channel assistance to Gaza through the PA. We must avoid the duplication of mechanisms, which would complicate coordination, the sequencing of projects and – not least – Palestinian ownership. Existing structures such as the World Bank Trust Fund, the European Union’s Pégase mechanism and the PA’s Central Treasury Account have proven their worth.

Let us work together to ensure that resources mobilised here today go to established and proven structures.

Fourth, we need to address the deep frustration among many donor countries over the lack of progress on the ground. We cannot sustain today’s high levels of aid if everything we have built up over the last fifteen years is, literally, torn down. The destruction of PA institutions in Gaza leaves us with a sense of déjà-vu all over again.

Finally,

Long-term reconstruction efforts are contingent on a secure and predictable framework. We cannot carry out reconstruction in a political vacuum. We need to see firm political commitments on both sides to a lasting and robust ceasefire – followed by real progress towards a two-state solution.

The vision remains the same: a Palestinian state living in peace side by side with the State of Israel. Time is running out. This time there will probably be no second chance.