Publisher's Synopsis
World Bank Group support to West Bank and Gaza covered four broad areas: governance, private sector development, infrastructure, and human and social development. The tension between the long-term development agenda and short-term emergency needs has been a persistent and unresolved feature of Bank Group program. Overall, progress in achievement of the overarching objectives of the Bank Group presence was limited: institutional development is uneven; infrastructure sectors continue to face technical and political issues; economic growth is driven by donor subsidies; and the private sector is weak. The Bank Group should not be blamed for lack of success, since the main constraints to peace and Palestinian statehood were beyond its control. The Bank Group made important contributions in identifying obstacles to development, estimating their costs, and promoting the search for compromises. Looking forward, the Bank Group program needs to recognize that the long-term development effectiveness of its support is heavily dependent on the Israeli-Palestinian political framework. Other specific recommendations include: developing a medium-term strategic outlook with results framework; exploring opportunities for closer cooperation with Arab donors; helping the Palestinian Authority to develop a long-term strategy to reduce dependence on aid; and identifying opportunities for Israeli-Palestinian cooperation on different aspects of development.
