POURING MONEY DOWN A HOLE

World Bank: "Money Cannot Fix" Palestinian Woes Before Real Reform (AFP/Yahoo)International financial aid will not improve life for Palestinians until fundamental political reform is undertaken by their government, Nigel Roberts, the World Bank's country director for the West Bank and Gaza Strip said Wednesday. Roberts argued that Palestinians' well-being had continued its slide even as foreign aid increased.

Palestinian personal income collapsed by 40% in real terms over the past four years, while disbursement of foreign donor aid doubled from $500 million to $1 billion per year. "If that doesn't show you how limited the impact of large sums of donors' assistance can be in a lousy policy environment, then nothing will," he said.