Shir Hever, an expert on the economics of Israeli occupation, concludes that at least 78% of international aid to Palestinians ends up in the Israeli economy.
Aid subversion is only one way that Israel benefits from Palestinian aid, according to Hever’s research. “Aid diversion,” he says, is aid that goes directly to Israel and never provides benefit to the Palestinian population. He includes Israeli measures such as port fees, transportation fees, storage fees, and “security fees” that are paid to Israeli companies or to government institutions from Palestinian aid budgets. For example, Hever cites a 2002 article stating that the largest Palestinian aid distributor, UNRWA, reported that it paid US$ 2.5 million in taxes to Israel in 2001 — nearly 1% of its total budget. A 2011 study of international non-governmental organizations found that Israeli movement and access restrictions on aid delivery cost aid agencies an estimated US$ 4.5 million addition per year, much of that paid directly into the Israeli economy without providing benefit to Palestinians.
