In this period of globalization in international finance, countries must pay great attention to their international credit rating. High credit ratings are awarded to countries that demonstrate stability and a high probability that they are able and willing to meet their international financial obligations.
The debt burden that many modern states carry is a severe limitation on their sovereignty, as they are forced to divert large sums towards servicing their debt, rather than spending these monies on public projects.
Since sovereignty is a critical issue regarding Palestinians in the Occupied Palestinian Territories (OPT), any debt that accumulates to the Palestinian Authority (PA) is a worrisome topic. A future Palestinian state that inherits a heavy debt from the PA will be disempowered to the degree that the struggle for Palestinian independence could be undermined by economic factors, even before political obstacles have been overcome.
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To read the whole policy paper, click here <http://www.alternativenews.org/news/english/israels-forgotten-debt-to-the-palestinians-a-policy-paper-of-the-alternative-information-center-20080109.html>.