Daniel Pipes offers the reasons why it’s so, as well as the solutions to solve it.
“Indeed, the Palestinian Authority offers a textbook example of how to ruin an economy by smothering it under well-intentioned but misguided donations. The $7.4 billion recently pledged to it for the 2008-10 period will further exacerbate the damage. Paradoxically, this error might help resolve the Arab-Israeli conflict. To see why, consider the two models, hardship v. exhilaration, that explain Palestinian extremism and violence.”
More here. *L* KGS