What’s the result of the planned cuts in economic aid to Palestinians?

A new report from the World Bank warns that projected cuts in economic aid to Palestinians once Hamas forms the government could cause the deep economic depression in the Palestinian territories. The World Bank report warns of a bleak economic future for Palestinians if International donors go through with plans to cat financial assistance to the Palestinian authority. Most international donors have said they will no longer be able to make direct disbursements to a Hamas dominated palestinian authority because of the group’s refusal to recognize Israel and disarm. Israel also says it is halting the transfer about 15 million dollars a month in customs and tax revenue it collects and disburses to the Paiestinian authority because it says Hamas will be able to control  the money. As the result, the World Bank warns personal incomes in the Palestinian territories could drop by as much as 30 percent this year. Unemployment could double to nearly 40 percent, and the Palestinian economy could shrink by nearly 30 percent. Hamas leaders say they are seeking alternate sources of funding in the Muslim world in countries like Iran. So far there is no indication that funding has been found.