LONDON, March 5 (IslamOnline & News Agencies) – With mounting international criticism of incessant Israeli aggressions on armless Palestinians, the World Bank charged in a new report released Wednesday, March 5, that Israeli closures of and daily aggressions on Palestinian self-rule areas wreaked havoc on Palestinian economy and citizens.

"The Palestinian economy is traumatized," said Nigel Roberts, the World Bank country director for the West Bank and the Gaza Strip, adding that "donor assistance cannot sort out this mess."

He cited Israel's closure of the occupied Palestinian territories as the main reason why Palestinians' incomes have dropped by an average of nearly 50 percent, half of Palestinian workers are unemployed and six of every 10 Palestinians live below the poverty line, Agence France-Presse (AFP) reported.

But Roberts, who was presenting new economic data on the territories at a press conference with U.N. Secretary General Kofi Annan's envoy Terje Roed-Larsen, cautioned that "until there is a political breakthrough, donors need to sustain their commitment to the welfare of the Palestinian people."

The Palestinian economy can only be saved by a political solution to the 29-month-old conflict with Israel, not by trying to jump-start it with billions of dollars in funding, said the two international officials.

Roberts said the 1.1 billion dollars believed needed to support Palestinian needs was "a low estimate," and that only 700 million dollars had been secured.

The World Bank estimated that physical damages from the conflict hit 738 million dollars by August 2002, while overall economic losses totaled 5.4 billion dollars for the past two years.

Roberts said the bulk of money from donor countries goes toward helping pay the salaries of 125,000 civil servants in Palestinian President Yasser Arafat's National Authority.

He argued that was "a more efficient support than food aid and other poverty tackling schemes" since the funds are re-injected into the local economy.

"Those employed in the public sector support the other two-thirds in the private sector," he said.

"Billions in aid is not the answer," agreed Roed-Larsen, adding that "the best way to address the humanitarian crisis is to give Palestinians the means to support themselves and manage their own lives."

He said that even the "one billion in aid was doubled" the situation in the occupied territories would not improve, and that "donor assistance is a stop-gap measure to prevent of total economic collapse and humanitarian disaster."

Sweden Critical of Israeli "Extra-judicial Executions"

"It is only through negotiation and an end to the occupation that Israel can be guaranteed a peaceful future," said Lindh

In another criticism of Israeli oppressive practices, Swedish Foreign Minister Anna Lindh blasted the Israeli army's "extrajudicial executions" of Palestinians.

"Extra-judicial executions continue unabatedly. Building demolitions have become increasingly common. Palestinians are humiliated daily at Israeli roadblocks," she said in a statement.

"Israel must realize that injustices and confrontation do not lead to security," she said, noting that 72 Palestinians, many of them civilians, have been killed as a result of the Israeli offensive in Gaza and the West Bank in the past month.

"It is only through negotiation and an end to the occupation that Israel can be guaranteed a peaceful future," she said.

Britain Concerned

"The indiscriminate use of force by (Israel) only fuels the cycle of violence, denying both Israelis and Palestinians the security they deserve," charged Straw

Britain also accused the Israeli army of using indiscriminate force against the Palestinians, and called on the Jewish state to do its best to prevent further civilian deaths.

"The indiscriminate use of force by the Israeli Defense Force only fuels the cycle of violence, denying both Israelis and Palestinians the security they deserve," British Foreign Secretary Jack Straw said Tuesday, March 3.

"Our ambassador to Israel will raise our concerns with the Israel authorities today and I call on them to do everything within their power to prevent further deaths of civilians," he added.

Straw's comments come after eight Palestinians, including a nine-month pregnant woman and a child, were killed by Israeli forces in the Gaza Strip Monday.

Soldiers blew up four Palestinian houses after telling residents to leave, but the 33-year-old pregnant woman failed to do so and was crushed to death.

Straw expressed deep concern over the civilian deaths, and noted that some 36 Palestinians had been killed on the West Bank and Gaza since February 20.

He urged both Israel and the Palestinian Authority to resume the political process so that they can reach a political settlement by 2005.

"Leaders on both sides must show statesmanship and rekindle hopes for peace," said Straw.

The U.S. State Department had Monday sharply criticized Israel's policy of demolishing homes and civilian buildings, noting with deep concern that innocent people were killed as a result.