Abstract
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.
Highlights
The controversy about the association between foreign aid and local development dates back to the post-World War II period (In’airat, 2007)
This study focuses on the role of foreign aid that directed to the PLGS, and how they affect local development, especially since the Paris Declaration4 so far
If there are fragile infrastructure, insufficient skilled workers, and controlled transport systems, for sure the effectiveness of aid will reduce for the recipient country (Radelet, 2006). (Elayah, 2016) view developing countries as a closed and empty circle, the ineffectiveness of foreign aid comes from being filled with fragile institutional environment, weak policies and corruption
Summary
The controversy about the association between foreign aid and local development dates back to the post-World War II period (In’airat, 2007). “The Paris Declaration (PD), 2005” may be seen as the most important attempt between others for many decades, which regarding as an international obligation to guide foreign aid more effectively (Dabelstein, 2013). Five basic principles were developed by Paris Declaration to ensure the effectiveness of the donations; ownership, alignment, harmonization, managing for results, and mutual accountability. The application of Paris Declaration reveals that donors are framing the policies and strategies of recipient countries as a prerequisite for receiving grants, thereby undermining and limiting the development options of their peoples within a specific list that is far from the development goals of the society itself. That is contrary to the Paris Declaration regarding to the preservation of ownership, the democracy of peoples, and building local capacity (Mahmud, 2008)
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