Columbia International Affairs Online: Policy Briefs

CIAO DATE: 09/2008

PolicyWatch #1353: Fayad's Reform Plan: Difficulties and Political Implications

Mohammad Yaghi

March 2008

The Washington Institute for Near East Policy

Abstract

A month after visiting Washington, Palestinian prime minister Salam Fayad continues to face significant political, economic, and security challenges to his reform plan. Fatah, the ruling political party in the West Bank, has resisted many aspects of his agenda and is critical of his cabinet's composition and performance. And although Fayad has spearheaded several important initiatives, his plan is in jeopardy, and the Palestinian Authority (PA) is still far from representing a compelling alternative to Hamas. To make matters worse, the PA has received just $260 million out of the $7.7 billion pledged during the December international donors conference in Paris, leaving the prime minister with month-to-month uncertainty about fulfilling the PA's salary commitments.