Local Development Forum
Economic SG

Economic Strategy Group (ESG)

The ESG focuses on issues of economic policy formulation and programmatic coordination. The main objective of the ESG is to improve aid effectiveness and strengthen PA-donor partnerships by:

  • increasing donor alignment and harmonization with the PA's national and sector policies, priorities and plans in the economic area;
  • supporting the development or updating of sector policy papers and strategies, within the framework of national plans and budgets;
  • developing joint indicators for sector monitoring and programme-based approaches;
  • improving coordination and transparency between the PA and donors and enhancing cross-sector policy discussion;
  • developing and ensuring adherence to basic aid effectiveness principles;
  • preparing, wherever possible, a sector-wide approach and pooled funding arrangements.
  • The ESG is supported by the work of three Sector Working Groups (SWGs) and two Task Force groups. These are functional groups which are the main instrument of coordination between the PA and the donor community at the technical level. The following SWGs currently exist: Agriculture, Fiscal and Private Sector Development and Trade. The following two Task Force groups currently exist: a Micro and Small Finance Task Force that reports to the ESG and a Fiscal Task Force that reports to the Fiscal SWG.

    The ESG reports to the Local Development Forum (LDF) on a regular basis.

    Membership in the group is limited to donors and other institutions (e.g. relevant non-governmental organizations, private sector organizations)  who can add substantial financial or analytical value, as well as relevant PA institutions.


    Ministry of Finance (MoF) and the World Bank
    PA institutions: Ministry of Planning and Administrative Development (MoPAD), Ministry of National Economy (MoNE), Ministry of Agriculture (MoA), Palestine Monetary Authority (PMA), Office of the President (OoP)
    Donors: Office of the European Union Representative (EUREP), France, FAO, Germany, International Monetary Fund (IMF), the Netherlands, Norway, Spain, United Kingdom (UK), United States (US)
    Observer: Office of the Quartet (OQ)
    Secretariat: Local Aid Coordination Secretariat (LACS)
    ESG Coordinator: World Bank