Since its founding in 1949, the UNRWA has become a permanent fixture in the complex humanitarian landscape of the Middle East. Originally intended as a temporary measure to meet the urgent needs of displaced Arab-Palestinian refugees, the agency has since transformed into something of an institutional paradox: a humanitarian body whose prolonged existence may now be sustaining the very problems it was created to solve.

For over seventy years, its mandate has remained largely unchanged, driven by a reactive, short-term approach that prioritizes crisis response over sustainable development. To break free from this cycle of dependency, it is imperative that we reimagine how aid is delivered—focusing instead on innovation, economic empowerment, and long-term resilience.

At the heart of UNRWA’s failures is its inability to transition from a relief-centered operation into a development-oriented framework. Programs designed to address basic needs—education, healthcare, and welfare—are undoubtedly vital in meeting immediate humanitarian concerns. Yet these services fail to address the entrenched socio-economic factors that perpetuate poverty and marginalization among Arab-Palestinian refugees. Over time, the agency’s emphasis on service provision has hardened into a structural dependency that constrains opportunities for refugees to integrate into host economies. Instead of equipping them to achieve self-sufficiency, this system inadvertently reinforces a state of perpetual reliance on external aid.

Nowhere is this issue of dependency more evident than in the sphere of education. UNRWA operates one of the largest school networks in the region, but its curricula often fail to reflect the needs of the modern labor market. A recent report by UN Watch, titled “UNRWA Education: Reform or Regression,” underscores significant gaps in the agency’s educational programs, notably outdated teaching methods and a neglect of technical and vocational training. The report highlights how this misalignment leaves many Palestinian graduates ill-prepared for employment, thereby exacerbating youth unemployment.

In Gaza, where joblessness rates exceed 40%, such educational stagnation only deepens the cycle of poverty. Without strategic investments in STEM (science, technology, engineering, and mathematics) education and vocational skills, UNRWA risks further isolating refugees from the opportunities of a 21st-century economy.

UNRWA’s detachment from private sector engagement compounds this problem. The agency has largely failed to promote initiatives that could stimulate entrepreneurship, attract investment, or establish robust job placement programs. In Gaza—where economic activity is stifled by blockades and political instability—this omission is particularly damaging. Microfinance initiatives, proven globally to enhance resilience and self-reliance, remain underutilized within UNRWA’s operations. This failure to leverage microfinance as a tool for economic empowerment wastes a crucial opportunity to foster thriving, self-sustaining refugee communities. Refugees continue to face exclusion from meaningful participation in both local and regional economies, deepening their economic isolation and dependency on aid.

Exacerbating these operational shortcomings is UNRWA’s unstable financial model. The agency is heavily reliant on voluntary contributions from donor nations, making it vulnerable to geopolitical shifts and donor fatigue. Recurring budget shortfalls have forced UNRWA into a pattern of reactionary crisis management, where short-term survival takes precedence over strategic planning and innovation. A report by UN Watch, “Poisoning Palestinian Education,” revealed instances of financial mismanagement, resource misallocation, and a lack of transparency within the agency. These issues have eroded trust among donor countries, many of which question UNRWA’s capacity to deliver impactful and impartial aid.

Breaking free from this entrenched dependency model requires bold reform centered on economic empowerment. Aid must prioritize the integration of refugees into host economies through vocational training, microfinance programs, and partnerships with private sector actors. Educational initiatives should be restructured to align with market demands, equipping refugees with relevant skills for sectors such as information technology, engineering, and renewable energy. At the same time, access to business credit and entrepreneurial training could enable refugees to establish small businesses, building pathways to sustainable livelihoods independent of aid.

Real-world examples illustrate the viability of these approaches. The World Bank’s “Kakuma as a Marketplace” report highlights the entrepreneurial vibrancy within Kenya’s Kakuma refugee camp, where over 2,000 refugee-owned businesses generate an estimated $56 million in annual household consumption. This case demonstrates the potential for refugees to drive local economies when provided with financial and business support. Implementing similar microfinance programs tailored to the Arab-Palestinian context could unlock opportunities for small business development, enhance household incomes, and reduce reliance on international aid.

Technological innovation offers additional avenues for reform. Blockchain technology, for example, could improve transparency in the allocation and management of funds, addressing persistent concerns over financial mismanagement. GPS tracking could enhance the monitoring of aid deliveries, ensuring that resources reach intended recipients without diversion or corruption. Such innovations could strengthen accountability and rebuild the confidence of donor nations, laying the groundwork for a more stable and effective humanitarian aid system.

Ultimately, this reimagined approach aims to foster resilience and self-reliance among Arab-Palestinian refugees, breaking the long-standing cycles of dependency and poverty. This shift is not merely a policy imperative but a moral one. Dependency undermines human dignity and the capacity for self-determination. Refugees deserve more than a subsistence existence—they deserve the opportunity to thrive, contribute meaningfully to their communities, and shape their own futures.

Confronting UNRWA’s systemic failures requires rejecting the notion that dependency can ever be a form of development. By embracing innovation, economic empowerment, and accountability, we can transform aid from a safety net into a pathway toward opportunity and dignity. The time has come to break with the limitations of the past and build a future grounded in resilience, self-sufficiency, and hope.

Replacing UNRWA with a transparent, accountable, and forward-thinking aid mechanism is both a moral responsibility and a strategic necessity. Through investments in vocational education, microfinance, and private-sector collaboration, we can create a humanitarian system that empowers refugees to reclaim their agency. Let this be the moment we chart a new course—one defined not by dependency but by opportunity, dignity, and hope.