The current financial crisis in the Palestinian government, as stated by Dr. Haitham Draghma, is a result of American and Arab influences, creating an artificial scenario of economic distress. The situation has been deteriorating since the 18th government took office, with political blackmail and financial restrictions imposed.
The occupation, backed by the United States, aims to manipulate negotiations regarding the families of martyrs and prisoners, further exacerbating the financial blockade with the involvement of Arab countries. The cessation of aid from Gulf Arab countries and the US under President Trump has added to the economic strain, pushing the Palestinian territories towards a potential state of security chaos or even an uprising.
The inability to resolve the crisis stems from the authority’s reliance on external aid and structural deficiencies in managing public finances, fueling corruption and division within the Palestinian institutions. The external factors, compounded by the impact of the global pandemic, have pushed the economy to the brink.
The call for a technocratic government that upholds transparency has been met with limited support, prolonging the financial crisis. Without international intervention, the consequences could lead to a collapse in security and stability, urging urgent diplomatic efforts to lift the financial blockade and restore economic stability.