Donor panel says Palestinian aid dependence declining, urges Israel to ease trade blocks

Palestinians seen as weaning themselves from aid

MADRID — An international panel coordinating aid to the Palestinians says their dependence on assistance is slowly declining but that Israel must lift restrictions blocking their territories’ economic development.

The Ad Hoc Liaison Committee says that this year the Palestinian Authority is seeking $1.2 billion from donors, down from $1.8 billion in 2008 and a bit less last year.

The committee, chaired by Norway and co-sponsored by the United States and the European Union, met Tuesday in Madrid to discuss priorities for Palestinian aid in 2010.

Palestinian Prime Minister Salam Fayyad says that if Israel were to lift its blockade of the Gaza Strip, the Palestinians’ need for aid would drop by $500 million a year.