UN Middle East envoy warns that fiscal collapse could cause massive violence
Palestine-Israel, Politics, 2/17/2001

The United Nations Special Coordinator for the Middle East Peace Process on Friday warned that an impending fiscal collapse of the Palestinian Authority could lead to an institutional collapse, which in turn might spawn further violence "and a situation that might get completely out of control."

Terje Roed-Larsen told reporters in New York that in a few weeks, the Palestinian Authority would be unable to pay its salaries, leading possibly to a collapse of key Palestinian institutions "which again might lead to chaos and anarchy in Palestinian areas."

On instructions from Secretary-General Kofi Annan, who was following the situation "hour by hour," Mr. Roed-Larsen said he would soon travel to a number of European capitals as well as Washington, DC to discuss the matter with officials.

"We need donor money from Europe," he said, noting that $10 million had been pledged by Norway. The Israeli Government was also controlling some $54 million worth of arrears in the Value Added Tax -- Palestinian money that had been collected by the Government of Israel. That money, along with support from the European Union, was needed to get the Palestinian Authority through February. He added that Arab donors would be approached for aid needed for the rest of the year.

On the economic and social side, he noted that unemployment was rising, while some 30 per cent of the population was living under the poverty level. "This indicates a crisis in living conditions, which is leading to a third crisis as we see it, which is a crisis related to attitudes on the Palestinian side and also on the Israeli side."

"It is an unfortunate development that it is now a clear minority of the Palestinian population who believes that negotiations can lead to a just peace," he said, noting that before the October outbreak in violence, some 70 per cent of the population had supported the peace process. Extremist organizations have been attracting growing support since then.

A security crisis was also in the making, the envoy warned.

"Violence is rampant and our opinion is that the situation very easily can get out of hand, with violence and counter-violence maybe on a massive scale."

Previous Stories:
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  Nine Israeli soldiers were killed, 21 wounded in a Palestinian operation   (2/15/2001)
  One Palestinian high ranking officer assassinated, 26 houses demolished   (2/14/2001)

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