Global Geopolitical Series: U.S. defunding UNRWA creates opportunity for Israel in Gaza to be savior

Under the umbrella of the United States, Israel and Hamas were closer than ever before in forging a truce/peace agreement over the Gaza region. However, as Palestinian Authority (PA) leaders led by president Mahmoud Abbas realized the risk of being sidelined and loss of a major bargaining chip, they used all the diplomatic muscle in the region, where it is now an accepted fact that without PA’s lead a deal would not be forged over Gaza and the negotiations effort would focus first on the West Bank issue led by PA.

The United States has taken tough stance on PA leaders’ defiance, who have refused to meet and sit down with Washington’s officials since President Trump recognized Jerusalem as the capital of Israel late last year, by announcing that the United States is cutting funding to United Nations Relief Work Agency for Palestinian refugees (UNRWA) to the tune of $200 million.  The United States has moved its embassy from Tel Aviv to Jerusalem earlier this year. The move has created a major crisis for the organization, which relies completely on donations from UN countries and the United States is the biggest donor 32.5 percent share according to the last budget. In addition to this $200 million, the Trump administration can further cut its contribution, which is the biggest risk.

Since the Gaza strip, Hamas - all funded by UNRWA, it is a major crisis for the Gaza region too. Israel has correctly recognized the opportunity and the risk attached as a major funding crisis makes the region economically unstable, making it an easy breeding ground for terrorists. But the opportunity is if Israel can step in with a new organizational setup to replace the UNRWA in the Gaza region, Hamas would ally closer with Israel than PA, who have angered Hamas by spoiling the truce. Gaza is more of a battle, where funding would be a bigger influence than Jerusalem. And that is exactly why PA leaders were threatening the leaders of Hamas with a cut in funding if a truce is reached with Israel.