Foreign Aid and the Health Sector

Foreign Aid (FA) to Palestine increased in the period following the establishment of the Palestinian National Authority to reach USD 920.24 million in 2015. The Palestinian economy was found to be dependent on FA where more than 60% of FA received was used in direct budget support rather than development. The Palestinian health system benefits from FA coming to Palestine. FA has contributed to the establishment of the institutional structure and capacities of the health system in Palestine. It also contributed to the provision of health services. Nevertheless FA for health in Palestine is found to be facing many challenges including: high influenced of donors’ agendas; lack of communication between different stakeholders; absence of effective coordination structures and inclusive discussion platforms; low accountability of donors towards the recipients; and finally the Israeli occupation which resulted in an unstable political situation with a continuous crisis situation rendering the development process very difficult. These challenges negatively affect the effectiveness and efficiency of FA for health in Palestine.