International aid has been provided to Palestinians since at least the 1948 Arab–Israeli War. The Palestinians view the aid as keeping the Israeli–Palestinian peace process going, while Israelis and other foreign policy authorities have raised concerns that it is used to fund terrorism and removes the imperative to Palestinians to negotiate a settlement of the Israeli–Palestinian conflict. As a provision of the Oslo Accords, international aid was to be provided to the Palestinians to ensure economic solvency for the Palestinian National Authority (PA). In 2004, it was reported that the PA, within the West Bank and Gaza Strip, receives one of the highest levels of aid in the world. In 2006, economic sanctions and other measures were taken by several countries against the PA, including suspension of international aid following Hamas’ victory at the Palestinian Legislative Council election. Aid to the PA resumed in 2008 following the Annapolis Conference, where Hamas was not invited. Aid has been provided to the Palestinian Authority, Palestinian non-governmental organizations (PNGOs) as well as Palestinian political factions by various foreign governments, international organizations, international non-governmental organizations (INGOs), and charities, besides other sources.
The Ad Hoc Liaison Committee coordinates the delivery of most aid to Palestinians. The entities that provide such aid are categorized into seven groups: the Arab nations, the European Union, the United States, Japan, international institutions (including agencies of the UN system), European countries, and other nations. The United States has been a major donor, providing more than $5.2 billion through USAID since 1994. In July 2018, Australia ceased providing direct aid to the Palestinian Authority, saying the donations could increase the PA's capacity to pay Palestinians convicted of politically motivated violence, and that it will direct its funds through United Nations programs.
The international community has sent billions of dollars in aid to the Gaza Strip to provide relief to the more than 2 million Palestinians living there. From 2014 to 2020, U.N. agencies spent nearly $4.5 billion in Gaza, including $600 million in 2020 alone. According to the Organization for Economic Cooperation and Development, aid to Palestinians totaled over $40 billion between 1994 and 2020.
History
Before Oslo Accords
Before the signing of the Oslo Accords, international aid for the West Bank and Gaza came mainly from Western and Arab states, mostly through UN agencies such as UNRWA. Most programs were started or developed during the 1970s, and expanded during the 1980s. Most of the aid was channeled through PNGOs or INGOs. Although the stance of the donors during the pre-Oslo period is regarded by some analysts, such as Rex Brynen, as controversial and linked with phenomena such as corruption, nationalism and factional rivalries, International aid effectively financed a series of programs in the sectors of agriculture, infrastructure, housing and education.
Oslo Accords
The Oslo Accords, officially signed on September 13, 1993, contained substantial provisions on economic matters and international aid: Annex IV of the Declaration of Principles (DoP) discusses regional cooperation and implicitly calls for major international aid efforts to help the Palestinians, Jordan, Israel and the entire region.
On October 1, 1993, the international donor community (nations and institutions) met in Washington to mobilize support for the peace process, and pledged to provide approximately $2.4 billion to the Palestinians over the course of the next five years. The international community's action was based on the premise that it was imperative to garner all financial resources needed to make the agreement successful, and with a full understanding that in order for the Accords to stand in the face of daily challenges on the ground, ordinary Palestinians needed to perceive positive change in their lives. Therefore, the donors had two major goals: to fuel Palestinian economic growth and to build public support for negotiations with Israel. According to Scott Lasensky, "throughout the follow-up talks to the DoP that produced the Gaza-Jericho Agreement (May 1994), the Early Empowerment Agreement (August 1994), the Interim Agreement (September 1995), and the Hebron Accord (January 1997), [...] economic aid hovered over the process and remained the single most critical external component buttressing the PNA."