World powers gather in Paris to bankroll Palestinian state

World powers gather in Paris to bankroll Palestinian state


Paris: Major powers and key donors meet in Paris Monday for a conference aimed at raising billions of dollars to help the emergence of a viable Palestinian state and give political impetus to the newly-relaunched peace process with Israel.

90 international delegations are expected at the one-day Conference of Donors for a Palestinian State, the biggest of its kind since 1996, which aims to shore up the process jumpstarted in the US city of Annapolis last month.

Palestinian president Mahmud Abbas is seeking $5.6 billion spread over 2008 to 2010 for an ambitious development plan to underwrite a promised state and tackle economic hardship in Palestinian territories.

High-profile delegates gathering for the occasion include UN Secretary General Ban Ki-moon, US Secretary of State Condoleezza Rice and Russian Foreign Minister Sergei Lavrov.

Foreign Minister Tzipi Livni will represent Israel, which is under pressure to lift restrictions on freedom of movement in the occupied West Bank and Gaza Strip to allow the Palestinian Authority’s plan to take shape.

Former British prime minister Tony Blair, peace envoy for the Middle East quartet -- the European Union, Russia, the United Nations and the United States -- is co-chair of the event along with host country France, peace-broker Norway and the European Commission.

Close to 70 countries will be represented, most at ministerial level, from the EU’s 27 members to the major players of the Middle East, the Group of Eight industrialised nations, and emerging powers Brazil, China and India.

International organizations present will include the Arab League, the International Monetary Fund, the World Bank and European and Arab financial funds.

French President Nicolas Sarkozy will open the proceedings, at Abbas’ side, with a speech at 9:30 am (0830 GMT) on Monday, before handing over to French Foreign Minister Bernard Kouchner for the rest of the day.

At the US-sponsored meeting in Annapolis, Maryland last month, Israel and the Palestinians pledged to seek a peace deal by the end of next year, relaunching negotiations frozen for seven years.

Abbas has said he is confident Paris will clinch the necessary aid -- 70% in budget support and 30% for development projects -- sending a powerful signal of backing for the peace process.

“It is urgent to stabilize the Palestinian economy and implement measures on the ground that will improve the daily lives of Palestinians," said Sarkozy’s spokesman David Martinon.

The Palestinian development plan has been drawn up by the West Bank-based government of the economist Salam Fayyad, whom Abbas appointed prime minister when the Hamas radical Islamist group seized armed control of the Gaza Strip.

“The plan projects a vision of the state we want to have. A state in the making," Fayyad told AFP in an interview.

Aside from budget support, the Palestinians say the largest chunk of development aid would go to projects in education, health and women’s emancipation.

Improving good governance is a top priority, along with developing the Palestinian private sector, export capacity and infrastructure.

Between 30 -40% of projects would be in the Gaza Strip -- with guarantees to ensure funds do not reach the Hamas militants in control of the territory, according to French and Palestinian sources.

Conference members are expected to urge Israel -- which operates 550 checkpoints in the West Bank -- to gradually lift restrictions on movement between Palestinian towns and villages, while asking the Palestinians for a big push to improve security conditions.

“The two have to move forwards in tandem," said a French diplomat, though he said the funds would not be strictly tied to either condition.

The Middle East quartet is expected to meet on the sidelines of the conference, while several high-profile participants -- including Ban, Abbas, Fayyad, Livni and Lavrov -- were to gather for an informal dinner with Kouchner on Sunday evening.

Rice will see Sarkozy for a bilateral meeting Monday afternoon, his office said.