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Source: World Bank
18 December 2003


Report No: 27094-GZ

WEST BANK AND GAZA
THE TRUST FUND FOR GAZA AND WEST BANK:

STATUS, STRATEGY, AND REQUEST FOR REPLENISHMENT

DECEMBER 18, 2003

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CONTENTS
1. Introduction - 5
2. Political, Economic and Social Context- 5
2.1 The Intifada and the Palestinian Economic Crisis - 5
2.2 The International Response in the 1990s and to the Intifada - 8
3. The Trust Fund for Gaza and West Bank - 8
3.1 Status - 8
3.2 Bank Strategy - 10
3.3 Portfolio Performance and Management - 12
3.4 Analytical and Policy Work - 15
3.5 Partnerships - 16
4. Planning and Priorities of the Palestinian Authority - 17
5. Strategic Options for Moving Forward - 20
5.1 Bank Strategy and Proposed Program - 20
A) Analytical and Policy Work - 21
B) Lending and Portfolio Composition
5.2 The Case for Replenishing the TFGWB
6. Risk and Mitigation Measures

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1. INTRODUCTION
1. The Bank has played a key role in the West Bank and Gaza (WB&G) from the early 1990s to the present day. 1/ The Palestinian Authority (PA), the Govemment of Israel (GOI) and the donor community have relied extensively on the Bank's analysis, project design and implementation capacity, and convening role. From the initial period of economic recovery and reconstruction through the state-building focus of the late 1990s to current emergency management efforts, the Bank has helped the parties shape their economic responses to an unpredictable, evolving socio-political reality. An active Bank presence remains in high demand. This paper reviews the status of the Trust Fund for Gaza and West Bank (TFGWB) and proposes a Bank assistance strategy for the coming two years. Central to this strategy will be a replenishment of the TFGWB.
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1. See Box 1 for a chronology of the peace process.

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