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UN: PA to collapse ‘in weeks’

UN officials say the Palestinian Authority may have only one month left before it collapses financially, plunging the occupied territories into anarchy.

Their warnings back recent statements by the UN's Middle East envoy, Terje Roed-Larsen, about the growing fiscal crisis facing the Palestinian Authority (PA) because of the five-month intifada and Israel's economic blockade of the West Bank and Gaza. The envoy's office is trying to convince the international community to take these predictions seriously and to help bail out the Palestinians before it is too late.

The Palestinian intifada, and particularly Israel's unprecedentedly harsh and almost uninterrupted blockade of the occupied territories, has devastated the Palestinian economy, tripling unemployment and pushing the number of people living below the poverty line to about one million.

About 100,000 Palestinians have been unable to cross into Israel to work. Figures released by Mr Roed-Larsen's office show income losses of $1.15bn from October to January. The main fear of western diplomats is that the financial collapse of the PA, which cannot pay its 130,000 employees, will bring about the fall of Yasser Arafat. There is speculation that Arafat may be readying to go into exile to Tunis or Cairo.
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