PED represented a critical phase of USAID’s investment to support a viable market economy in Palestine. The project came at a sensitive time in the peace process, when USAID’s continuing leadership within the donor and Palestinian communities was required to catalyze positive change in a difficult environment. PED focused on strengthening democratic and market economy institutions, thereby maintaining positive momentum in the private sector and in key economic ministries so that the Palestinian economy can compete in the global market.

After the installation of a Hamas-led government in March 2006, the scope of the project was modified to provide a flexible humanitarian mechanism capable of fulfilling critical consumption needs and sustaining employment in the private sector.

PED had five components:

1. Improving the Business Operating Environment: DAI provided business support services (such as financial management, marketing, production, overhead control, legal); provided limited technical assistance and small grants to business institutions/associations that are able to deliver services to small and medium-sized enterprises; facilitated access to finance
(microfinance/bank finance); and established an apprenticeship program.

2. Supporting the Growth of Competitive Industry Clusters: PED provided targeted firm-level technical assistance for select firms in key productive and service sectors (such as food processing and healthcare) that fulfill critical domestic consumption needs. Tasks included supporting the agribusiness and pharmaceutical clusters and assisting clusters that support other consumption needs.

3. Energy Sector Policy Reform: DAI was contracted to conduct policy analysis and develop reform measures as they relate to legal and institutional reform, industry structure and ownership, and tariff and regulatory structure to help the Palestinian Authority improve management efficiencies in the energy sector.

4. Design and Manage a PED Grant Fund: DAI implemented a $3.5 million grant fund to support PED objectives.

5. Private Sector Monitoring and Assessment: DAI compiled data on industries and firms throughout the West Bank and Gaza to provide USAID with real-time information on the state of the private sector. This component was added to the contract in August 2006.


PED in the News
Aid Programs Show U.S. Commitment to Palestinians