Vital Perspective

Hamas Takes in $20 Million From Norway; Direct Transfers to Abbas Discussed

Norway said on Wednesday it would give $20 million in aid to the Hamas-led Palestinian Authority, as well as explore ways to offer direct assistance to Mahmoud Abbas. Banks in the region are unwilling to transfer funds in the face of warnings from the Bush administration that they could be breaking U.S. laws, according to Palestinian officials and Western diplomats.

"With the (Palestinian Authority) president's guidance we were able to start reviewing a number of projects for Norwegian funding worth approximately $20 million within the health and education sectors as well as for energy supplies," Norwegian Prime Minister Jens Stoltenberg told reporters after talks in Oslo with Abbas.

Unlike the EU, which suspended aid earlier this month, Norway did not formally stop its assistance, though no aid was previously scheduled to be delivered in the period following the Hamas election victory. Norway insists that any future direct "budgetary aid" would be conditional on moves by the Hamas government to recognize Israel and renounce violence.

Norway Freezes $57 Million in Foreign Aid to Palestinian Authority

Norway, which currently gives around $57 million a year in aid to the Palestinian Authority, has frozen aid to pressure the new Hamas government to restart negotiations with Israel.

Foreign Minister Jonas Gahr Stoere said that Norway wanted to help bring Israel and the Palestinians back to the negotiating table "so that we can achieve our goal and the international community's goal -- namely two states that can live side by side in peace."

Early last month, Norway transferred $10 million to an international joint aid fund to finance the salaries of Palestinian Authority employees. The money was earmarked to help pay teachers' salaries for February and March.

Hamas Will Take Over a Government Flush with Cash

According to The Norway Post, "Norway has transferred $10 million to an international joint aid fund to finance the salaries of Palestinian Authority employees. The money will be used to help pay teachers' salaries for February and March." In all likelihood, we believe these funds will be transfered to the UNRWA, which teaches incitement and passes it off as education.

Also on Tuesday, the World Bank announced that it was issuing a $42 million grant to the Palestinian Authority to help ensure it can continue providing basic services. "The release of this tranche will allow the PA to maintain economic and social stability in the short-term by covering urgent expenditures such as salaries of civil servants," David Craig, World Bank director for the West Bank and Gaza said in a statement.

By our count, this brings the post-Hamas PLC election influx to $463.4 million from the EU, Iran, Sweden, Norway and the World Bank. That figure does not include the $50 million per-month from the Arab League or an undisclosed amount of funding Hamas has admitted to receiving from Hezbollah (which receives its funding from Syria and Iran).

We want to know three things. First, how can these donors seriously believe that over $463.4 million can be spent before Hamas takes over the prime minister's office. Second, is that even a consideration to these donors? Third, do these donors realize that any improvements made by the PA prior to Hamas taking full control will only lessen the burden on them?