16/01/2008 ::
Excellencies, ladies and gentlemen,
As chair of the AHLC I would like to thank France, President Sarkozy and Minister Kouchner, for hosting the conference, and I would like to thank our co-chairs, Quartet Representative Tony Blair and the European Commission and Commissioner Ferrero Waldner, for excellent cooperation over the last months. I would also express my appreciation to the surge of support signified by the broad range of delegations present here today. In particular, I welcome the strong presence from governments of the region.
Let me then thank the PA for presenting a well-prepared Reform and Development Plan which is the basis for today’s pledges. Prime Minister Fayyad, you signal here a strong conviction that the PA is ready to take charge of the complex challenges of building a state that eventually will be a response to a two-state solution. We signal by our presence and our pledges that we believe in your cause, in your resolve and in an outcome that will be a foundation for peace. With your document we now have the right basis for cooperation between the PA and donors.
This pledging conference takes place against the backdrop of the first direct final status talks between Palestinians and Israelis in seven years. It is our task to reinforce the new, imporant momentum we now see.
In addition to mobilizing political will and courage, there are two keys needed to move forward after Annapolis: Visible signs of social and economic development for the Palestinian in both the West Bank and in Gaza and enhanced sense of security for both Palestinians and Israelis. Our task here in Paris is to help build capacity to deliver both of these keys.
One key condition for succeeding is to help mobilise budget support to the Palestinian Authority. I fear that without direct budget support, the Palestinian Authority will collapse. We cannot allow that to happen.
Let me also underline: It is critical that the Palestinian Reform and Development Plan include both Gaza and the West Bank. We need to send the message that Gaza and its population of 1.5 million people - desperately needing employment opportunities, social services and medical support – is not forgotten by the International community. Budgetary support covering salaries for public servants – including in Gaza – should therefore be met.
I would also urge donors to use the Single Treasury Account to channel their assistance. It is effective, the results are immediate and it reduces transaction costs. The whole mechanism will be served and guided by the proposed World Bank Trust Fund. I would like to thank the World Bank for proposing this fund – and I would encourage delegations to channel part of their support through this mechanism. It is the best guarantee we have to secure proper and transparent administration of budget support funds.
Let me then turn to our Israeli colleagues and friends: It is hard to see how the Palestinians can make any reasonable progress without improved access to and within the territory. Without such access, there will be no economic growth. At the same time, I acknowledge Israel’s right to address legitimate security concerns, such as the totally unacceptable launch of rockets from Gaza. It is, however, critical that Israel does its utmost to facilitate trade and daily life for the Palestinians by implementing the Agreement on Access and Movement.
Chairman,
Norway is committed to continue to support the Palestinian state building efforts. In 2008, Norway will contribute a total of NOK 760 million –equivalent to about USD 140 million. We want to maintain this level for the whole period 2008-2010. We intend to make sure that approximately 50% of our assistance in this period goes directly to the Palestinian Authority. This year we have provided USD 41 million in budget support, and we will maintain this high level in 2008. If we can get a World Bank Trust Fund up and running early next year, our preference would be to make use of such a mechanism. Such a fund would be an important instrument for improving burden sharing and increasing sorely needed fiscal predictability and sustainability.
Chairman,
After Paris momentum must be kept and developments must be monitored. Disbursement and budget support will be key.
The high level AHLC meeting in New York in September paved the way for renewed efforts by the donor community. The Paris conference is an improtant milestone. We now ned to keep the pace in constructive parallell track with the political negitations after Annapolis. For this purpose Norway will call for an AHLC meeting in the spring in order to assess further needs, assist in the speeding up disbursements and the monitoring of progress.
Thank you.