Despite the fact that all of the projects are intended to improve living conditions of the Palestinians, both the Bush administration and the Palestinian Authority, as well as its leader, Mahmoud Abbas, came under criticism because of the timing of the expenditures. They were seen as an effort to dissuade Palestinians from voting for Hamas, a terrorist organization. As usual, the Palestinians missed the point.

The $2 million is but a fraction of the U.S. development budget in the Palestinian territories. The Palestinian treasury is close to bankrupt. Vital services as well as education and support for economic structure require a massive infusion of funds which the United States and the Western European nations are unwilling to commit at this time, and justifiably so, until the Palestinians get their political house in order.

The great tragedy is that Yassir Arafat stole during his lifetime several billions of dollars from funds made available by the United States and the Western European countries for the Palestinian people. These billions disappeared into banks in Europe, primarily in Switzerland. These facts were disclosed at the time of Arafat’s death in Paris in the unseemly discussions between Arafat’s widow and Palestinian leaders while Arafat first lay in a coma and later was dead in his hospital room. His death could not be announced and the body could not be moved until an agreement was reached about the money under the control of Arafat’s widow. At this point, it seems clear that most of that money was retained by Arafat’s wife.

This unfortunate state of affairs has to be addressed. The Palestinian leadership should use legal process in Europe to obtain for their own people the monies pilfered by Arafat and other Palestinian leaders. That money is badly needed at this critical juncture if the Palestinians are ever to have a chance of developing Gaza and the West Bank into a meaningful political entity. Moreover, the United States and the Europeans should insist that these funds which they contributed be accounted for. To the extent that they have not been spent, but have ended up in Mrs. Arafat’s bank accounts, or the accounts of other corrupt Palestinian leaders, they should be returned to the Palestinian people. To the extent that the Palestinians will not pursue these funds, then the United States and the Western Europeans should do so.

Arafat is not the only corrupt leader on the world stage in the twentieth century. Pinochet in Chili concealed tens of millions of dollars in more than a hundred bank accounts outside of Chili. The Chilean government has arrested Pinochet’s wife and children in a tax evasion case as part of the effort to recapture this money which belongs to the Chilean people.

A bankrupt Palestinian treasury is only part of Arafat’s shameful legacy. The other part is being demonstrated by the elections taking place today in Gaza and on the West Bank. Arafat, who operated as a dictator, fearful that he would be ousted was unwilling to develop young leadership to follow him. As a result, the Palestinians have been led by the very weak Mahmoud Abbas, who lacked the courage to disarm Hamas and the militants.

The terrorists in Hamas enjoy considerable support among Palestinians in response to the fiscal corruption and ineffectual governance of the Fatah party. Hamas will achieve considerable representation in these elections and they will be in a position to thwart any efforts which Fatah leaders would like to make toward peaceful coexistence with the Israelis.

After these elections, it is virtually certain that we will be in for a chaotic period among the Palestinians. With Hamas part of the Palestinian ruling structure, it is likely that there will be increased terrorist attacks against Israel. These will evoke a strong Israeli response.

Lacking a negotiating partner, the Israelis may take further unilateral steps toward disengagement which is clearly in their own interest and is indeed the only progress which can be made. All of this is part of Arafat’s legacy.