Aids provided to the Gaza Strip under the blockade falls short of meeting basic needs and aspirations of its residents. This paper reviews documents to study the flow of donor-funded aid in the recovery and reconstruction programs of the Gaza Strip. The analysis reveals that donors have not undertaken this assistance in a manner consistent with OECD principles for aid to fragile states, or in keeping with the Palestinian concept of "people-centered development-for-liberation." The results show that one of the reasons for the limited success of aid flows is donor commitment to a "no-contact with Hamas" policy which has severely impeded much-needed communication channels with the de facto government that Hamas represents. In addition, the working of donors under Israeli restrictions has rendered the delivery of aid extremely difficult.