Palestinian Authority above threshold of functioning state

The press release in Arabic (pdf)

- I note with great satisfaction the World Bank suggestion that the Palestinian Authority’s delivery of public services and implementation of reforms now compare favourably with those of many middle income countries, said Foreign Minister Jonas Gahr Støre in his capacity as Chair of the AHLC.

Meeting in Brussels today, the international donor group in support of the Palestinians (AHLC) welcomed reports that the Palestinian Authority has crossed the threshold for a functioning state in terms of its successful institution building. This was the assessment of the Palestinian Authority’s performance in key sectors studied by the World Bank, the IMF, and the UN.

- Moreover, according to the IMF, the Palestinian reforms have come so far that not only is the public financial management system ready to support the functions of a state; it has even become a model for other developing countries, said Støre.

The three-party cooperation between the Palestinian Authority, Israel and international donors within the AHLC framework has greatly contributed to the success of Palestinian state-building efforts.

The AHLC also reported sustained economic growth in the Palestinian Territory, which in 2010 reached an impressive growth rate of 9 %.

However, many donors noted that the lack of political progress leaves the negotiating track out of sync with the far advanced state-building efforts of the Palestinian Authority.

- This is why all parties concerned must stand firm behind the stated goal of negotiating a framework agreement on permanent status and a subsequent comprehensive peace treaty by the agreed target date in September, said Støre.

Støre also recalled the underlying mission of the AHLC, which is to work jointly towards the objective of bringing the peace process to its rightful end by backing up a two-state solution.

The AHLC welcomed the planned donor conference to be held in Paris in June 2011 in support of the Palestinian national development plan for 2011-2013.

Today’s AHLC meeting in Brussels was hosted by EU High Representative Catherine Ashton, and brought together Palestinian Prime Minister Salam Fayyad and Israeli officials with representatives of key donor countries and Quartet Representative Tony Blair.

Meeting of the Ad Hoc Liaison Committee, Brussels, 13 April 2011, Chair’s summary (pdf) 

Remarks by EU High Representative Catherine Ashton after the donor coordination group for the Palestine Territories