Until now, no solution seems in the offing to the fiscal crisis facing Hamas and the Palestinian people, reports Erica Silverman Hamas legislator Ibrahim Abu Salem called out the amount of each cash donation he pulled from a large white box before a crowd of thousands who gathered in the centre of Ramallah after Friday prayers in support of the new Hamas-led government. As donation boxes floated through the crowd, a trail of women and young girls approached the stage offering family jewels, their way of trying to alleviate the economic crisis that has crippled the West Bank and Gaza. In a fiery speech, Parliament Speaker Aziz Duwaik asserted, "We will not allow the EU and the US to pressure us to forfeit our rights." He asked for patience and assured that "victory is near." Similar patriotic rallies to boost morale were held in cities across the West Bank and Gaza. Images of hard cash give the impression that funds are coming, although in reality the empty "single treasury account" of the Palestinian Authority (PA) was closed by the Amman- based Arab Bank after Israel, the US and the EU instituted a policy of political and economic isolation of the Hamas-led government. The PA has been unable to receive funds from abroad as local, regional and international banks have refused to handle the transactions, fearing US sanctions. Emergency assistance from the Arab League amounting to $70 million has yet to reach the Palestinians. Gold dealers in Ramallah have reported a rush to sell jewellery and other family heirlooms. PA salaries have gone unpaid for two months; about a quarter of the population depends on these paycheques for survival. Public outcry against Hamas's handling of the financial crisis began on Saturday as Palestinians in the West Bank and Gaza staged strikes and demonstrations to demand payment of overdue salaries. Around one thousand gathered for a demonstration in Nablus, in which small children appeared with signs taped across their mouths that read "hungry". Will funds reach the PA? The Quartet -- the UN, US, Russia and EU -- will hold talks Tuesday in New York to discuss developments in the region; specifically their policy toward the Hamas government and the ensuing humanitarian crisis. The European Commission has proposed transferring aid earmarked for specific purposes, such as health and education via President Mahmoud Abbas. Condoleezza Rice has indicated the US will consent. Jacques Chirac will raise the idea of a trust fund managed by the World Bank to channel funds. The World Bank, the EU and Hamas have promised to consider the proposal, although the US has reservations. Saudi Arabia, Egypt and Jordan will also press the Quartet to find ways to channel funds to the Palestinian government. Russia has provided $10 million in urgent humanitarian aid to the PA that made its way through to the president's office Friday. The United States and the European Union suspended assistance to the Palestinian government's cabinet and ministries after the Hamas-led government rejected the Quartet's principles of eschewing armed struggle, recognising Israel and respecting all previous agreements reached between parties to Israeli- Palestinian conflict. As punishment for Hamas's electoral victory, Israel decided to withhold $54 million in monthly tax revenue owed to the PA, which barely covers the salaries of nearly 160,000 PA employees, in violation of the Paris Protocol signed in 1994 in conjunction with the Oslo Accords. The annual Palestinian budget is approximately $1.9 billion. Palestinians received $1.3 billion in foreign aid last year. How is the Palestinian government operating without a bank? Last week, a PA auditor attempted to withdraw $40,000 from Arab Bank in Gaza City. He was informed that $3,000-$4,000 was the maximum amount for withdrawal available. Israel's largest bank, Hapoalim has decided not to deal with Palestinian banks, while the Israeli Central Bank has tightened restrictions on cash transfers from abroad. In addition, a sudden upsurge in cash withdrawals, in reaction to the economic crisis, has depleted cash reserves in the Palestinian territories. Under Israeli occupation, Palestinians lack their own central banking system; meaning Palestinian banks must transfer cash reserves to the Israeli Central Bank. An already strained Palestinian healthcare system is feeling the impact. Dr Jumaa Al-Saqqa, public relations director of the PA-operated Shifa Hospital in Gaza, reported a shortage of drugs, medical supplies and an inability to maintain medical equipment since the Ministry of Health was hit by economic sanctions. "Two hundred drugs are almost at zero, including anaesthesia. We will not be able to perform surgery in another 10 to 14 days," warned Al-Saqqa. Shifa, the largest hospital in Gaza City, treats over 2,000 patients per day. The Ministry of Health has been unable to purchase drugs from the private sector, a hospital official reporting that four kidney dialysis patients died this week from a lack of medicine, and that chemotherapy is no longer an option for cancer patients. Gaza City Mayor Maged Abu Ramadan has warned the sanctions could lead to the collapse of the Palestinian sanitation and sewage systems, raising the threat of cholera and other diseases. Since salaries have gone unpaid, residents have been unable to pay municipal taxes. The city has already been forced to cut garbage collection to save fuel, he stated. Meanwhile, police officers in Ramallah were working in the dark after electricity was cut at several stations. The US and the EU have vowed to continue humanitarian assistance, but with 75 per cent of schools and 60 per cent of healthcare facilities operated by the PA, a more comprehensive solution is urgent. "All the international aid agencies put together will not be able to replace the services that the PA provides," said David Shearer, head of the United Nations Office for Humanitarian Affairs. "If we can't continue our work, then disease will break out everywhere, and these diseases will not stop at borders," said Health Minister Bassem Naim. He predicts the entire health system will break down in two months if funding does not arrive. Will Fatah and Hamas set aside their power struggle? According to an aide to President Abbas, the two sides were unable to reach a conclusive agreement during meetings held Saturday and Sunday in Gaza City. Negotiations are set to continue this week, now against the backdrop of violent clashes that broke out between Fatah and Hamas in Khan Younis that claimed the lives of three Monday morning. Tawfik Abu Khoosa, Fatah spokesperson for the West Bank and Gaza, said: "We can't work together with Hamas in the government until they accept Abbas's agenda," though Fatah is still "unwilling to pressure the Hamas government". It is likely Fatah and Hamas will reach an agreement to channel the funds through Abbas, bypassing the Ministry of Finance. A joint committee, created after Hamas was sworn into office to deal with issues related to the PA budget, border security, media statements, and to encourage dialogue, was expanded Sunday. The committee includes senior Fatah officials Rawhi Fattouh, Azam Ahmed and Nabil Shaath, as well as Foreign Minister Mahmoud Zahar. Meanwhile, in Ramallah, Speaker Duwaik asserted to a cheering crowd, "We are ready to suffer, we are ready to starve, we are ready to die, but we will never give in," though many faces in the crowd were wrought with worry.
