The United States, the European Union, the United Nations and Russia agreed Monday that financial assistance to the new Palestinian government, which will be led by the radical Islamic group Hamas, would be contingent on the government's recognition of Israel and renunciation of violence.Withdrawing aid from Palestine would be a major mistake. Palestine has made some progress in economic development over recent years, a situation that is vital to the stability of Palestine, but there are still major obstacles to overcome. (See this excellent presentation on the issue given by Dr. Hisham Awartani from the Center for Private Sector Development in Palestine.) Hamas understands this. Yesterday, Ismael Hineyah, a senior Hamas leader, called on the US and Europe to continue with the aid, especially to develop the private sector and the Palestinian economy. I said in a comment on an earlier post "It is vitally important to stabilize and grow the economy if terrorism is to stop, yet the ideologues in this administration can't grasp this easy concept. So, once again we may see their irrational dogma CAUSING terrorism instead of stopping it. Rice is definitely not an idiot, but she sure lets ideology rule her mind and blind her to solutions." Either that or she is willfully ignoring the solution.
Security and the peace process are at stake here. All of this Maggot Thatcherism going around is just an obstinate gamble with the safety and security of Palestinians, Israelis, and the rest of the world. Without building the institutions necessary for economic stability, terrorism will continue to flourish, but Palestinians need support in building those institutions. Now is not the time to withdraw aid, for who will rush to fill the need? Iran! I realize that the administration wants to hasten the Second Coming (as does Ahmadinejad), but it shouldn't make it so obvious. (That's a joke, righties. I hope.)
The CIPE Development Blog has an interesting discussion about this issue. I encourage you to register on the site and participate.