Analytical View on the Impact of Foreign Aid on the Palestinian Local Development within the Framework of the Local Government Sector - Under the State Building Phase -

Shayma Jamal Bawatneh


This paper trying to assess the impact of foreign aid on the Palestinian local development by focusing on the role of PLGS and monitoring the readiness of the Palestinian local development plans to face and manage the future in case foreign aid is cut off permanently from the State of Palestine. The paper poses main question: Is foreign aid “within the framework of the PLGS” being channeled within the proper course of local development? Taking into account the exceptional circumstances of building a State under colonialism and under a centralized system of government. Main results were presented via SWOT analysis which based on deep literature review, interviewing local officials, and identification of performance indicators which used in the assessment. Findings of this study pointed out that despite the fragility of the Palestinian local governance sector which has many internal problems and external challenges; there are many opportunities that must be invested within the available potentials in order to achieve sustainable local development. Besides, reducing the value of foreign aid until do without it is the proper course toward sustainable local development through changing the mentality of consuming into investing. The study presented many valuable recommendations to correct the path of local development in the state of Palestine and how to activate the positive aspects that related to obtaining foreign aid. Developing countries can rely on the results of this study as they are similar in the fragility of their administrative systems.


Foreign Aid Effectiveness, Fragile States, Developing Countries, Donors, Conditional Foreign Aid, Local Development Priorities, Performance Indicators, SWOT Analysis.

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