Mr. President,
Yesterday, in Madrid, Norway chaired the bi-annual meeting of the Ad-hoc Liaison Committee (AHLC), the coordination mechanism for the international donor community. The purpose of the meeting was to take stock of the implementation of the Palestinian Government’s two-year plan and discuss the way forward. Launched in August 2009, the plan is a political vision for the establishment of the Palestinian state and the primary platform for the engagement of the international donor community.
Prime Minister Fayyad reported that his government is on track with the implementation of the plan. Some sectors are in need of additional attention, while others develop beyond expectations. But overall the PA is progressing towards the goal of completing the state-building process by the end of 2011. In the Prime Minister’s words; we are approaching “the homestretch” of the Palestinian state-building process, seeing the contours of an emerging Palestinian state structure.
The Palestinian economy, however, is suffering. While economic growth for 2009 is estimated at around 7% there is doubt as to whether that growth can be sustained unless Israel continues easing restrictions and allows the Palestinian economy to flourish. A precondition for a sustainable Palestinian economy and reduced donor dependancy is access and movement of goods and people throughout the Palestinian territory. East-Jerusalem constitutes 12% of the Palestinian economy and must become an integral part of the West Bank. PA estimates its annual loss of revenue from the blockade of Gaza at 500 mill. dollars, representing around 42% of the estimated donor funded budget support to PA in 2010.
Mr. President,
There is, however, a limit as to how far the PA, with the financial support of the donor community, can move the reform agenda without a meaningful peace process and a negotiated settlement. At one point the fundamental issues that stand in the way of a two-state solution must be negotiated and resolved, paving the way for the Palestinian state. Norway strongly supports the efforts by the USA to resume the negotiations and will continue to work with the international donor community in making sure that the support for the two-year plan remains intact. However, the unconditional support of donors cannot be taken for granted. Unless the donor community sees the strong determination by the parties to enter into a meaningful peace process with a timeline for the completion of negotiations and the two-state solution, willingness to continue funding the Palestinian state-building project will erode, undermining all we have achieved over these last 17 years.
Mr. President,
When it comes to the Israeli-Palestinian conflict warnings that we are at a critical juncture have over the years not been in short supply. But I would like to point out one element that has changed the picture. The notion of a Palestinian state has over these years evolved from merely a concept, through a possibility, and now, judging from the reports to the AHLC-meeting yesterday, to a reality within reach. The PA has provided us with a timeline for the completion of the state-building process. It is time the parties provide us with a timeline for completion of the final status negotiations.