RS22370
U.S. Aid to the Palestinians
February 02, 2006
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Summary
With the recent success of Hamas at the polls, many observers have cautioned that continued foreign assistance to the Palestinian Authority (PA) may be at risk due to Hamas' commitment to the destruction of the state of Israel and its designation as a terrorist group by the United States. Currently, the Palestinians are the largest per capita recipients of foreign aid worldwide and, with a shattered economy, are completely dependent on external support to meet basic needs. Without Western aid, a Hamas-led government may be forced to rely completely on donations from wealthy Arab Gulf states or from Iran. On the other hand, the prospect of losing U.S. and European aid may force Hamas to tone down its radical views and accept Israel's right to exist. In the meantime, foreign donors have been cautious, demanding that Hamas renounce the use of violence and recognize Israel while withholding a complete cessation of aid programs pending the formation of a new Palestinian government. This report will be updated as events warrant. For more information, see CRS Issue Brief IB91137, The Middle East Peace Talks, by Carol Migdalovitz.
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