ABSTRACT
In this chapter, we will examine the role played by Western donors in state building from 1994 until the eruption of the Second Intifada in 2000 and assess their impact on rent-seeking in the territory as they attempted to reconstruct Palestinian social and political structures. Undoubtedly, aid contributed to the consolidation of the PNA, with donors providing both initial start-up costs and recurrent budget expenses. Aid also reinvigorated the declining Palestinian non-governmental organizations (NGOs). However, there were concerns underlying this relationship, especially those concerning administrative and political corruption within the PNA and questions about the quality of monitoring and whether better practices could have been promoted. There were also other issues such as the stated aims of donors to promote civil society and democracy and the changes taking place on the ground. While donors sought to empower Palestinian society, the outcome was that society, already weakened by the occupation, became even more fragmented during this period.
