The 'Peace Council' founded by former U.S. President Donald Trump in January is currently grappling with a suffocating funding crisis, as its dedicated fund managed by the World Bank has yet to receive any financial contributions despite substantial financial promises made to it. Sources familiar with the situation have informed Agence France-Presse that the fund has not received a single dollar, raising questions about the future of the council and its ability to achieve its objectives.
The 'Peace Council' was established as part of the American proposal that led to a ceasefire agreement between Israel and Hamas last October. Its primary goal was to oversee the reconstruction process in the Gaza Strip, but it appears that its scope has expanded to include the resolution of international disputes, raising fears that it could become a parallel entity to the United Nations.
Details of the Situation
According to informed sources, the council's fund managed by the World Bank has not received any financing from donors, as the phase designated for reconstruction and development has not yet commenced under the terms of the ceasefire agreement. The Financial Times reported that the council, which Trump continues to chair even after his term, has not received any money in its dedicated fund. One source confirmed that “not a single dollar has been deposited.”
Instead, funds have been redirected to a special account at JPMorgan Chase, raising concerns about transparency, as there are no independent requirements to ensure it. In a social media post, the Peace Council clarified that the fund managed by the World Bank is merely one mechanism among several funding avenues that have yet to be utilized.
Background & Context
It is noteworthy that major European countries have distanced themselves from joining the council, with both France and the United Kingdom refusing to participate. Meanwhile, Trump announced a U.S. contribution of $10 billion, while Qatar, Saudi Arabia, and the UAE pledged at least $1 billion each.
According to the council's charter, countries wishing to obtain a permanent seat must pay a fee of $1 billion. Nevertheless, military operations continue in Gaza, resulting in at least 910 fatalities since the announcement of the ceasefire agreement, according to the health ministry in the region.
Impact & Consequences
The United Nations and the European Union estimate the cost of reconstruction in the Gaza Strip over the next ten years to be approximately $71.4 billion, according to a joint study with the World Bank. Nikolai Mladenov, the Peace Council's representative in Gaza, warned of the risks that the current situation, characterized by a fragile ceasefire, could evolve into a permanent state.
In this context, three non-governmental organizations condemned the humanitarian situation, describing it as “catastrophic,” pointing to the significant gap between announced commitments and actual implementation. The war in the Gaza Strip erupted following Hamas's attack on Israel on October 7, 2023, resulting in the deaths of 1,221 individuals, most of whom were civilians, making it one of the deadliest wars in the history of the Israeli state.
Regional Significance
The situation in Gaza is seen as a true test of international efforts in reconstruction and achieving peace. The lack of necessary funding for the council could exacerbate the humanitarian conditions in the region, negatively impacting regional stability. Additionally, the continuation of military operations despite the ceasefire complicates the situation further, reflecting the significant challenges faced by the parties involved in achieving peace.
In conclusion, the fate of the 'Peace Council' in Gaza remains uncertain, amid a lack of necessary funding and required transparency, raising questions about its effectiveness and ability to achieve its declared objectives.