1.1 Higher Education has been designated a priority area in Palestinian National Authority policy. EU input to the Higher Education Sector was planned on a projection of funding from the PNA which would increase progressively year by year. The PNA has not been able to realise this plan and Palestinian universities are currently in a situation of severe financial stringency.

1.2 Funding from Catholic Church sources has been the major factor in Bethlehem University's survival over the 25 years of its existence and remains as important as ever today. It should not be assumed to continue to be able to fund the same proportion of increasing Bethlehem University costs.

1.3 Bethlehem University is keenly aware that Palestine is in a state of transition and is going through difficult times. But the level at which the University is supported by national funding at present is inadequate to maintain standards and even less adequate if it is to increase the quality of performance as envisaged by the initiatives proposed in the Five Year Strategic Development Plan. Fiscal responsibility and cost consciousness and effectiveness will play an important role in implementing the elements of this Plan, along with imaginative approaches to financing initiatives. What initiatives can become realities in the Implementation Phase of the Plan, or at least how quickly, will depend on how they can be resourced as much as on their intrinsic value.

1.4 Palestinian Society is the greatest beneficiary of the University's activities and the Palestinian State can ultimately be expected to act on its acknowledgement of the important and invaluable contribution the universities make to the development of Palestinian human resources and to Palestinian society. Part of the current revenue of Bethlehem University comes from an annual grant from State sources, but it has reduced proportionately in recent years, which is a cause of great concern. Were this to continue it would constitute a serious threat to the high standards of Bethlehem University. Other sources of funding will enhance the University's quality and service to the local community, but cannot be expected to and must not be perceived to substitute for a deficit in recurrent running expenses as a result of inadequate funding from National resources.

2 Major Issues Emerging from Responses and Consultations

2.1 There was no attempt in the responses to look at a structure for funding a comprehensive development of the University. However, 15% of the respondents made suggestions relating to finding resources for developing the different initiatives put forward. The traditional approach of fund-raising internationally was seen as the best hope for development of buildings and the physical environment. Procurement of grants from international agencies and the establishment of links with industry were suggested as ways of extending research activities. The MOHE policy of an increase in student tuition fees and charging for services were mentioned. More efficient use of current resources was also suggested as a way of providing for development.

2.2 University activities should be at least self-sustaining and with proper management income may be generated, while maintaining modest fees for community-related activities.

3 Proposed Initiatives

• Continued priority attention to expansion of the financial base for the University, a critical activity which will require focused efforts on the part on all the members of the University, and development of the four major financial sources:

  -Government

  -tuition and other University revenue

  -the Catholic Church

  -private individuals and organizations (e.g., from Europe, Latin America, the USA and the Gulf States).

• Discussion of comprehensive development plans with the new Director General of Planning and Development at the MOHE, and participation in the schemes proposed in the MOHE Rationalization Plan.
• Exploration of University initiatives in income generating programs, e.g., the capacity of the University to generate income from services provided should expand as the services develop.
• Expansion of grant-aided research to respond to the needs of the Community and simultaneously build up equipment. Special attention to the establishment of a fund to maintain equipment.
• Provision of income-generating amenities such as shops, snack bars and concession booths.