A State with 10%

When the Palestinian Minister of Finance and Planning candidly informs the public that the government is managing the affairs of the country with only about 10% of its usual revenues, and that the budget for developmental projects has nearly touched zero, he is not merely speaking about dry figures or stalled budgets; he is practically announcing the end of one phase and the beginning of another in our contemporary economic history. This statement, despite its severe harshness, places all of us before the bare truth we have attempted to ignore for years: the developmental model we have built over decades, which is primarily based on foreign aid and clearance revenues tied to politics, has reached a dead end and is no longer capable of meeting the aspirations of a people yearning for independence and growth.

Managing a state with 10% of its resources is not merely a "managerial miracle" or a temporary emergency we expect to dissipate; rather, it is a clear and explicit indication that the existing governmental structure is burdened with loads beyond its capacity and ability to maneuver in the face of crises. The shocking figures speak of an economic loss nearing one billion dollars per month, a public debt exceeding 14.6 billion dollars, and withheld clearance funds totaling 4.5 billion dollars. This bitter reality imposes upon us an existential question that cannot be postponed or evaded: can we continue to consider the government as the "financier, operator, and sponsor" of every detail of our economic lives, while the ground shakes beneath our feet and resources dry up around us?
We have long lived under a developmental model that links "progress" and "prosperity" to the extent of donations provided by donors or what the government directly spends from its general budget. But this model is fading today before our eyes; international aid, which once constituted 27% of the GDP, has diminished to just 2% today. Global priorities have radically changed, and external funding is fleeing to other conflict zones or is directed toward urgent humanitarian relief rather than long-term strategic building. This decline is not merely a liquidity shortfall but a structural transformation that presents us with two options: either to drown in the whirlpool of managing "the bare minimum" and await relief, or to muster the courage to redefine the role of the state and its responsibilities in the post-aid era.
The efficiency we need today is not about how to rationalize the deficit or distribute half salaries intelligently, but in how to free the state from operational and developmental burdens that it can no longer bear alone. A strong state, in the modern sense, is not measured by the size of its bureaucratic apparatus or its direct intervention in every aspect of economic activity, but by its ability to be the "smart regulator" and the "catalyst" that opens closed doors to investment and innovation. Why does the government, for instance, insist on managing vital sectors such as energy, fuels, and technical and logistical services alone, while the private sector, in true national partnership, could do this more efficiently and at a significantly lower cost to the strained public treasury?

The initiatives that have recently begun to emerge, from establishing the national fuel company to expanding solar energy projects and digital transformation programs, should not be seen merely as urgent technical solutions to the current financial crisis. Rather, they should be viewed as a serious beginning to the process of disentangling from the old, bloated model. They are essentially attempts to open the door for Palestinian capital, which estimates suggest exceeds 5 billion dollars in investments abroad, to return and lead the development engine in its homeland. Attracting these migrating minds and funds does not solely require emotional speeches or national appeals; it needs a strong legal and legislative environment ensuring stability, unraveling the paralyzing bureaucracy, and providing protection for both investors and citizens alike.
At a time when Palestinian workers face suffocating restrictions and cancellation of permits leading to a loss of 4 billion dollars annually, the digital economy emerges as a vast backdoor to transcend geographical constraints and political complexities. The information technology sector, which is quietly growing and contributing about 4% to the GDP, is conclusive evidence that we possess a young human resource capable of creating "light-burdened" growth that does not require sovereign guarantees or massive international grants. The shift towards comprehensive digitization is not a technical luxury or a trend to follow; it is an imperative means to reduce the size of the bloated government apparatus, making it more agile and responsive to the needs of the people away from long waiting lines and administrative complexities.

The bitter experience of many long years has proven that reliance on clearance funds as the "sole lung" through which the Palestinian economy breathes is a losing bet, and its strategy is fraught with risks. Any political decision to withhold or cut off funds immediately transforms into a social and livelihood crisis that affects every household and every business interest. While clearance remains a national and legal right that cannot be waived, it cannot remain the sole pillar upon which the future of our coming generations is built. Real and sustainable development stems from the heart of local production, from the strength of private investment, and from the community's ability to innovate solutions for its own resources away from the fluctuations of international politics or the whims of donors.
The real danger we face today is not just in the cash liquidity shortage, but in the transformation of "emergency economics" and "crisis management" into a permanent mindset and institutional culture that sees no further than the end of the month. Nations and peoples do not progress or thrive merely by their ability to survive or overcome crises, but by their capacity to invest in the latent opportunities that those crises generate from the womb of suffering. The era of generous aid has turned its page irreversibly, and the age of the government that does everything and controls everything has passed its time.
The future will belong to those who dare today to redesign the structure of the state to be less costly and more effective, to allow for a real and equal partnership between the public and private sectors. The success of any new model of financing and development will remain organically linked to factors of governance, transparency, and legislative stability. Investment, by its nature, seeks clarity and the ability to predict the future, which are factors no less important than financing itself. The real challenge facing Palestinians today is not in how to "manage affairs" and survive on 10% of revenues, but in how to seize this pivotal moment to build a robust national economy that does not need more than those resources to thrive, grow, and create a future worthy of the sacrifices of this people.