International envoy James Wolfensohn has sharply questioned the decision of Western powers to cut off aid to the Hamas-led Palestinian government.
In his final report to Middle East mediators after stepping down, Mr Wolfensohn said the United Nations and non-governmental organisations will not be able to fill the void if Palestinian Authority institutions collapse under Western pressure.
The report noted more than $1 billion a year had been spent on assistance to the Palestinians, much of it to build government institutions and an economy needed to create a "viable Palestinian state."
The so-called Quartet of international powers mediating in the Middle East is made up of the United States, European Union, Russia and the United Nations.
"It would surprise me if one could win by getting all the kids out of school or starving the Palestinians. And I don't think anyone in the Quartet believes that to be the policy," Mr Wolfensohn told a news conference in Washington today with US Secretary of State Condoleezza Rice.
"I think that's a losing gambit," the former World Bank president added.
Mr Wolfensohn officially stepped down as the Quartet's special envoy on April 30th because of restrictions on his role now that Islamic militant group Hamas is in control of the Palestinian Authority, aides said.