Where Does All That Aid for Palestinians Go?

One often-cited key to peace between Israel and the Palestinians is economic development. To that end, there seems to be broad agreement about the importance of extending development aid to help the Palestinians build the physical and social infrastructure that will enable the emergence of a sustainable, prosperous society. But few have seriously questioned how much money is sent and how it is used.

Such assistance will only promote peace if it is spent to foster tolerance and coexistence. If it is used to strengthen intransigence it does more harm than good—and the more aid that comes in, the worse the outcome. This is exactly what has been transpiring over the past few decades. Large amounts of foreign aid to the Palestinians are spent to support terrorists and deepen hostility.

For years the most senior figures in the Palestinian Authority have supported, condoned and glorified terror. “Every drop of blood that has been spilled in Jerusalem,” PresidentMahmoud Abbas said last September on Palestinian television, “is holy blood as long as it was for Allah.” Countless Palestinian officials and state-run television have repeatedly hailed the murder of Jews.

This support for terrorism doesn’t end with hate speech. The Palestinian regime in Ramallah pays monthly stipends of between $400 and $3,500 to terrorists and their families, the latter of which is more than five times the average monthly salary of a Palestinian worker...