The price of occupation : how does international aid affect business development in Nablus?
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This thesis will study how international aid affects business development. This has been studied through fieldwork in the West Bank city Nablus. Our theoretical framework focuses on different aspects of the definition of development, the relief and development debate, and how politics influences aid. It also looks at the accessibility of aid through coordination and communication. Coordination of aid distribution is not always an easy task. There are many actors, with different agendas and mandates (Kruke & Olsen, 2010). In order to get the best possible outcome it is essential that the beneficiaries are a part of the process and able to share their opinions. To see how international aid affects business development the thesis has looked at how budget support to the PA affects the private business sector. In our opinion the budget support has an indirect effect on business development. It makes the private business sector vulnerable for outside pressure from donors holding back aid for political reasons. The consequence being that the PA cannot pay salaries to their employees. With the PA being a major employer in the oPt, this has consequences for the private sector. When international aid is given over time and in large amounts, dependency can occur. For the society to recover from aid dependency it is essential for the private sector to grow. Businesses are also affected by the occupation from Israel, with a big problem being the restrictions on movement of goods and labor. Aid is also being used to finance the damages caused by the occupation, which indirectly makes them to pay for the destruction. The thesis has also studied how local resources are included in the aid distributions process in private sector business development. The donors and INGO headquarters that decide how processes are implemented are far away from the conflict and the local context of the situation. It is our opinion that local resources are not taken in to consideration to the degree they should. This has an effect on the incentives for the recipients of aid, who receives aid and who doesn’t. Consequently, aid is given is ways that could harm the private sector business development.
Master's thesis in Risk management and societal safety