World Bank Says Palestinians Able To Establish Statehood

09.17.10 | FL News Team

(Washington, DC)   --  A new World Bank report indicates the Palestinian Authority is in good position to establish statehood.  At the same time, the report says the Palestinians will still depend on foreign aid unless the Authority is able to line up private investment.  The report emerged amid new U.S.-led peace talks between Israel and the Palestinians.  Those discussions are aimed at reaching a deal on Palestinian statehood within a year's time.  

On Thursday, the financially troubled World Bank squeezed out a 40-million dollar grant for budget support for the Palestinian Authority.  The Bank points out the Authority was looking at a budget deficit of between 300-million and 400-million dollars this year.  The Bank believes if the Palestinians keep up its efforts in the delivery of public services and institution building, "it is well-positioned for the establishment of a state" at any time in the future.