Looming UNRWA cash crunch would have devastating impact on Palestinians

Life could get even worse for besieged Palestinians in Gaza as Israel’s senseless and barbaric genocide continues unabated.

The United Nations aid agency responsible for providing food, shelter, schooling and a host of other vital offerings to the enclave could run out of funds as soon as April, officials have warned.

According to the United Nations Relief Agency for Palestinian Refugees (UNRWA) Commissioner General Philippe Lazzarini, the agency faces a severe cash crunch due to lack of fresh funding.

Amid dubious allegations from Israel that UNRWA employees participated in the Oct. 7 attacks, previous donors such as the United States and Switzerland have suspended contributions.

During a visit to Ireland this month, Lazzarini warned that the agency is under existential threat, adding that UNRWA will see negative cash flow in April. His concerns were echoed by Irish Foreign Minister Michael Martin, who stated that it would be "inconceivable" for the global community to allow UNRWA to collapse at such a dangerous moment in the conflict.

Such a scenario would be devastating for a Palestinian population already subjected to torment, displacement, genocide and a history of living under apartheid.

The impending collapse of UNRWA comes as the US, United Kingdom and other donors suspend contributions as they await the outcome of a UN investigation into Israel’s claims about the agency's staff.

Such accusations lack credibility, given that Lazzarini himself confirmed that Israel has not provided any evidence to back them. Still, he has initiated a "reverse due process" strategy of firing staff this month without evidence, given the importance of swift action.

Adding to doubts about the claims is that Israel vets all UNRWA employees. According to UN General spokesperson Stephane Dujarric, UNRWA shares its list of staff with both the Palestinian Authority and the Israeli government.

What lack of evidence and Israel's contentious claims confirm is that as an occupying force, Israel has long sought to eliminate UNRWA. Israeli PM Netanyahu acknowledged this in his recently-released "Post-Hamas Plan," which includes a recommendation that UNRWA be shut down after the war for its alleged ties to terrorism.

As it stands, 18 countries have suspended donations to the agency, contributing to its perpetual decline and hurting aid distribution. If UNRWA runs out of money in April, this would have devastating consequences on Palestinians for a number of reasons.

Firstly, aid distribution through UNRWA is a lifeline for the occupied population. For decades, the agency has operated like a semi-state while providing aid to six million Palestinians in Gaza and the occupied West Bank via social services, schools and health care centres.

The entire population in Gaza also relies on the agency’s hygiene supplies, food and water to sustain their livelihoods.

Created by the UN General Assembly in 1949 with the aim of providing basic healthcare and food to more than 700,000 Palestinian refugees forcibly displaced during the 1948 Nakba, UNRWA has since founded 706 schools for 543,075 students, 140 primary health facilities for more than 7 million annual patient visits and 58 refugee camps for 5.9 million refugees.

Beyond the occupied West Bank and Gaza, there are also UNRWA facilities for displaced Palestinians in Syria, Lebanon and Jordan.

Since Israel began bombing Gaza in October, 45 percent of the Palestinian population there has been residing in UNRWA facilities, including schools, clinics and public buildings.

UNRWA has already been stretched thin providing shelter with limited resources to these internally displaced Palestinians. Now, some $667.2 million in pledged donations from at least nine countries has been suspended.

A severe funding crunch materialising in April 2024 would hence be harrowing for Palestinians, given their reliance on the agency’s aid for survival.

UNRWA has also been a source for generating Palestinian income in occupied territory. This is due to the 2005 blockade by Egypt and Israel on Gaza. This has caused Gaza to have one of the highest unemployment rates in the world amid a severe economic meltdown.

Through UNRWA, thousands of Palestinians became employed in schools and healthcare facilities. And some 545,000 children were enrolled in schools in 2021, while 1.7 million others received urgent humanitarian assistance.

However, since Israel began bombing Gaza, 66 percent of jobs have been lost while more than 7,700 children have been killed. Any healthcare centres that are still standing are deeply overwhelmed and struggling to manage a humanitarian situation which is untenable.

Israel’s intent to continue bombardment while simultaneously ensuring the defunding of UNRWA would mean that there is no let up for the battered Palestinian population.

Also pertinent to note is that UNRWA does not have a mandate to resettle Palestinian refugees, nor does it run refugee camps. The latter falls under the domain of the United Nations High Commissioner for Refugees (UNHCR).

Its aid is solely for humanitarian assistance. As a result, lack of funding would encroach upon basic fundamental human rights for the Palestinian population who have suffered from decades of displacement, destruction and blockades.

An UNRWA cash crunch in April 2024 would severely compromise vital aid for Palestinians. Lack of aid would only worsen their plight by further contributing to rising unemployment, poverty, starvation and destitution.

In light of these pressing realities, it is critical that donors continue to fund UNRWA without which a catastrophic and apocalyptic scenario could emerge for Palestinians.