UNITED NATIONS NATIONS UNIES

OFFICE OF THE UNITED NATIONS SPECIAL COORDINATOR

FOR THE MIDDLE EAST PEACE PROCESS

_______

PALESTINIAN STATE-BUILDING:

A DECISIVE PERIOD

Ad Hoc Liaison Committee Meeting

Brussels, 13 April 2011

  i
 

ACRONYMS ....................................................................................................................... ii 

Overview ........................................................................................................................... iii 

Introduction ........................................................................................................................ 1 

1. Situation on the Ground: Occupied Palestinian Territory ..........................................2 

West Bank ....................................................................................................................................2 

East Jerusalem ........................................................................................................................3 
Area C .......................................................................................................................................4 
Movement and Access ............................................................................................................5 

Gaza ..............................................................................................................................................6 

2. PA’s State-Building Agenda....................................................................................... 10 

Planning Efforts.........................................................................................................................10 
PA’s Institution-building Progress ..........................................................................................11 

Annex 1: Previous UN Recommendations in the April and September 2010 AHLC

Reports: ........................................................................................................................... 13 

Annex 2: UN Analysis of Institution Building Progress ............................................... 16 

Governance, Rule of Law & Human Rights.............................................................................16 
Livelihoods & Productive Sectors ...........................................................................................19 
Basic Services ...........................................................................................................................21 
Infrastructure & Water...............................................................................................................26 

  i
 
ACRONYMS

AHLC Ad Hoc Liaison Committee

ASYCUDA Automated System for Customs Data
CAP Consolidated Appeal Process
CDTP Commission for Developing Teach Professionals
CPA Crossing Points Authority
FAO Food and Agriculture Organization of the United Nations
GDP Gross Domestic Product
GOI Government of Israel
HRF Humanitarian Relief Fund
HCJ High Court of Justice
ICA Israeli Civil Administration
IDF Israel Defence Force
ILO International Labour Organization
IMF International Monetary Fund
IT Information Technology
MOA Ministry of Agriculture
MOEHE Ministry of Education and Higher Education
MOFA Ministry of Foreign Affairs
MOH Ministry of Health
MOPAD Ministry of Planning and Administrative Development
MOSA Ministry of Social Affairs
MT Metric Tonne
MTRP Medium-Term Response Plan
MYR Mid-Year Review
NM Nautical Mile
OCHA Office for the Coordination of Humanitarian Affairs
oPt Occupied Palestinian Territory
PA Palestinian Authority
PLO Palestine Liberation Organisation
PNP Palestinian National Plan
PRDP Palestinian Reform and Development Plan
SEFSec Socio-economic and Food Security
UNCT United Nations Country Team
UNCTAD United Nations Conference on Trade and Development
UNDP United Nations Development Program
UNESCO United Nations Educational, Scientific and Cultural
Organization
UNFPA United Nations Population Fund
UN-HABITAT United Nations Human Settlements Program
UNICEF United Nations Children’s Fund
UNIFEM United Nations Development Fund for Women
UNOPS United Nations Office for Project Services
UNSCO Office of the United Nations Special Coordinator for the Middle
East Peace Process
UNRWA United Nations Relief and Works Agency for Palestinian
Refugees
VAT Value Added Tax
VAW Violence Against Women
WB World Bank
WFP World Food Programme
WHO World Health Organisation
WTO World Trade Organisation

  ii
 

Overview

The April 2011 Ad Hoc Liaison Committee (AHLC) meeting is the fourth since the release in
August 2009 of the Programme of the Thirteenth Government of the Palestinian Authority
(PA). The plan was welcomed by the AHLC in September 2009 as an important platform for
donor coordination, with the focus on developing a sustainable economy and building robust
state institutions. The Quartet has supported this plan for building the institutions of a
Palestinian state in two years. The April 2011 AHLC meeting is the last expected AHLC
meeting before the September 2011 target date for completion of institutional readiness for
statehood set by the PA and supported by the Quartet. This is therefore a decisive period for
the state-building agenda, and the April meeting is an important moment for taking stock of
the economic and institutional issues before the AHLC.

The report concludes that, in the limited territory under its control and within the constraints on
the ground imposed by unresolved political issues, the PA has accelerated progress in
improving its governmental functions. In six areas1 where the UN is most engaged,
governmental functions are now sufficient for a functioning government of a state.
This reaffirms the World Bank’s assessment in September 2010, noted by the Quartet,
that ‘if the PA maintains its current performance in institution-building and delivery of
public services, it is well positioned for the establishment of a state at any point in the
near future’. This is a significant achievement arising from the commitment of the PA and
strong donor backing. In parallel, Israeli measures to facilitate movement and access have
also supported economic activity.

When released, the Palestinian National Plan (PNP) 2011-2013, will lay the basis for
additional improvements in PA institutions, and the UN looks forward to aligning its future
programming accordingly. A donors’ conference held at the appropriate time in 2011 will
provide an opportunity to reinforce support for the PNP. In addition, it will also be critical to
ensure that the PA’s recurrent external financing needs in 2011 (estimated at just under
US$1bn) are met in a timely and predictable manner.

Despite the progress achieved, the key constraints to the existence and successful functioning
of the institutions of a potential State of Palestine arise primarily from the persistence of
occupation and the unresolved issues in the Israeli-Palestinian conflict. This, together with the
continuing Palestinian divide, deprives the PA of the ability to extend its institutional authority
to areas outside its reach, and of key attributes of statehood which enable a government to
deliver to its people. Accordingly, the institutional achievements of the Palestinian state-
building agenda are approaching their limits within the political and physical space
currently available, precisely at the time that it is approaching its target date for
completion.

In particular, whilst some progress has been achieved on the ground, including through
a package of Israeli measures agreed by Prime Minister (PM) Netanyahu and Quartet
Representative (QR) Blair on 4 February,2 space for real progress regarding Area C and
East Jerusalem remains very limited due to persistent measures of occupation, the lack
of sufficient meaningful Israeli enablement steps on the ground on these issues, and
the lack of progress in resolving final status issues in Israeli-Palestinian political
negotiations. Nor is space available in Gaza due to the Palestinian divide. These areas
remain outside of the control of the PA, but essential to building a Palestinian state.

  iii
 
In the West Bank, improvement of security, coupled with improvements in access for goods
and people in a number of areas, was recorded since the AHLC last met, as were some
Government of Israel (GoI) efforts to facilitate access to basic services. However, in Area C
and East Jerusalem in particular, measures of occupation continue to challenge Palestinian
movement and access, hinder basic service provision to Palestinians, and undermine the
development of resources. Human rights concerns persist on many fronts related to the
conditions of the Palestinians under occupation, while security incidents of several kinds
continue to affect both Israelis and Palestinians. The current situation continues to constrict
sustainable economic growth, development, equity in service delivery, and infrastructure
development – and the confidence of citizens in the ability of their government to ensure their
basic rights. This report therefore concludes that, notwithstanding GoI steps to facilitate
economic growth and some development, measures of occupation which stifle
Palestinian life are not being fundamentally rolled back by more far reaching Israeli
actions to match the progress of the state-building programme.

It is vitally important that the state-building and political processes be brought into alignment
by September 2011. This remains the PA target date for completion of institutional readiness
for statehood supported by the Quartet, complementing the target set by the parties in
September 2010 for seeking a negotiated framework agreement on permanent status within
one year. In this context, it is of the utmost importance that the parties overcome the current
impasse and return to negotiations to seek a framework agreement on permanent status that
resolves all core issues, ends the occupation that began in 1967, ends the conflict and
realizes the two State solution, and the UN will continue to engage within the framework of the
Quartet to further this vital objective. On the ground, to advance the agenda of the AHLC, it is
essential that the PA continues to implement its agenda and that these efforts are matched by
more far-reaching Israeli measures to facilitate economic and institutional progress than those
taken to date. The report therefore concludes that the primary focus as we enter the final
months of the Programme of the Thirteenth Government is to address the physical and
political factors that constrain this Programme from realising its full potential.

An additional concern remains the lack of PA presence in Gaza, resulting in a

disconnect between Gazans and many PA institutions. Since the last AHLC, socio-
economic, human rights and security conditions remained of concern, given Israeli closure
measures, misguided de facto governance and lack of Palestinian unity based on the
Palestine Liberation Organization (PLO) commitments, Palestinian militant activity, smuggling
of weapons, and Israeli military operations. On a positive note, there was continued progress
in the implementation of the Israeli Security Cabinet announcement of 20 June and the
announcement of 8 December 2010, both important for recovery in Gaza. There were some
signals of recovery and other positive developments during the reporting period, including real
GDP growth of 15 percent, increased volume of non-food imports, increased average annual
sales of Gaza businesses, and further approvals of UN and other international projects. A
steady flow of new approvals for UN construction/reconstruction works in Gaza and a
streamlining of coordination procedures with the GoI will be key. Greater liberalisation of the
import of construction materials through the legitimate crossings into Gaza (including
aggregate, iron bars and cement) is increasingly important for recovery. On Gaza, the UN
continues to be guided by the framework of Security Council Resolution 1860 and the
fundamental goals laid out therein. The lifting of the closure remains a central objective.

However, modest recovery efforts amidst a fragile and oft-breached calm, a continuing closure
regime, and a persistent Palestinian divide fall short of what is required to lay the economic
and institutional basis for statehood throughout the occupied Palestinian territory – in
particular in Gaza. The progress that has been achieved by the PA must be more
meaningfully connected to all areas of de jure PA responsibility and to all Palestinian citizens.
  iv
 
The UN has noted with much interest that President Abbas and Prime Minister Fayyad have
strongly supported efforts to achieve progress towards unity. The UN will continue to look for
real progress towards reunification of Gaza and the West Bank within the framework of the
Palestinian Authority and the commitments of the Palestine Liberation Organization.

This report’s analysis and recommendations build on the UN’s April and September 2010
reports to the AHLC. Whilst there has been some progress in the implementation of a number
of the previous recommendations, both by the parties and AHLC members, many of the areas
remain relevant to achieving further progress. (See Annex I for the recommendations from
these reports).

  v
 

Introduction

Since the AHLC last met in September 2010, the PA has further accelerated progress in
building the structures of a future Palestinian state, as outlined in the Programme of the
Thirteenth Government. As this Programme concludes in September 2011, this meeting of
the AHLC provides an opportunity to reflect on developments in the situation on the ground,
and to review progress achieved in strengthening key PA institutions and functions. This
report is therefore divided into two sections:

The first section reviews the situation over the last five months (the reporting period is 21
September – 20 February unless otherwise noted), including recent advances and the
remaining challenges on the ground, with particular reference to the recommendations set out
in the UN’s April and September 2010 reports to this Committee (Annex 1).

The second section summarises the PA’s progress in six areas where the UN is most
engaged and which will be central to the functioning of a future Palestinian state; these
include:
1. governance, rule of law & human rights;
2. livelihoods & productive sectors;
3. education & culture;
4. health;
5. social protection; and
6. infrastructure & water.

Progress in each of these six areas is detailed in Annex 2.

In six areas where the UN is most engaged, governmental functions are now sufficient
for a functioning government of a state. This reaffirms the World Bank’s assessment in
September 2010, noted by the Quartet, that ‘if the PA maintains its current performance
in institution-building and delivery of public services, it is well positioned for the
establishment of a state at any point in the near future’. This is a significant achievement
arising from the commitment of the PA and strong donor backing. In parallel, Israeli measures
to facilitate movement and access have also supported economic activity.

  1
 

1. Situation on the Ground: Occupied Palestinian Territory

To provide the context in which the PA state-building agenda and institutional and economic
efforts are being pursued, this section highlights major developments and trends in the
occupied Palestinian territory, covering the period between 21 September and 20 February
unless otherwise indicated.

West Bank

It should be noted that, within the Oslo framework, the Palestinian Authority’s administrative
and security responsibility in the West Bank extends only to Area A, including major
Palestinian population centres other than occupied East Jerusalem. The PA also has
administrative responsibility in Area B, while Israel retains security responsibility. All parts of
Area C (62 percent of the West Bank) remain under Israeli administrative and security control.
When combined with measures of occupation and security procedures, especially around
settlements, the current situation leaves Palestinians significantly constrained in terms of
movement of people and goods and access to land.
There have been improvements in the economic situation: Palestinian GDP growth in
the West Bank reached an estimated 8 percent in 2010, reflecting continued public
expenditure, directed by PA management and reform efforts, and donor support. In
parallel, Israeli measures to facilitate movement and access have also supported economic
activity.
The capacity of the PA security forces (PASF) continued to increase, in order to
maintain law and order and promote security in Area A, towards meeting Roadmap
commitments.3 Taking stock of these efforts, the Secretary-General has noted that a reliable
security partner has emerged.4 There is increased coordination between Israeli and
Palestinian security forces, and the GoI agreement to authorize the opening of an additional
seven police stations in Area B is welcome.5 However, Israeli incursions in Palestinian
controlled areas have continued, albeit at a lower rate than in the previous reporting period.6
Israel cites security concerns for operations in Area A, but such operations undermine the PA.
The increasing capacity of the PASF and the confidence it inspires is of the utmost importance
to the Palestinians, and also provides an important basis for further easing of restrictions on
movement and access and the facilitation of PA efforts in Area C.
However, violence led to civilian casualties and heightened tensions. During the
reporting period, twelve Palestinians, including ten civilians, among them two children, were
killed and 545 other Palestinians, including 114 children, were injured in the West Bank.
These were either the result of IDF actions citing security concerns, or due to settler violence,
the number of incidents of which rose by approximately ten percent during the reporting
period.7 In an incident deplored by the United Nations and for which the Israeli authorities
expressed regret, a 65 year old Palestinian man in his bed was killed by the IDF on 7 January
during an operation in Hebron. Also in January, Palestinian civilian fatalities at a checkpoint
and during anti-barrier demonstrations raised serious concerns.
In the same period, no Israelis were killed, but 29, among them ten civilians, were injured.
However, outside the reporting period, in a shocking attack on 11 March, five members of an
Israeli family, including three young children, were murdered in their beds in the West Bank
settlement of Itamar. On 23 March, one British civilian was killed and 30 injured in a bombing
at a bus stop in West Jerusalem. Investigations are continuing into the perpetrators of these
attacks. The UN unequivocally condemned these appalling attacks and called for those

  2
 
responsible to be brought to justice and for all to act with restraint. These attacks were
condemned by the Palestinian Authority.

Israeli settlement activity continued in the West Bank, including in East Jerusalem,
contrary to international law. Following the September 2010 expiry of a ten-month partial
Israeli settlement moratorium, construction work reportedly began on more than 1,700 units.8
The Israeli authorities dismantled infrastructure at certain unauthorized outposts built on
Palestinian private land, but the bulk of outposts remain in place. Israel should heed the calls
of the international community and the provisions of international law, and fulfil its Roadmap
obligations to freeze all settlement activity, including natural growth, and dismantle settlement
outposts erected since March 2001.

East Jerusalem

Access constraints between East Jerusalem and the rest of the West Bank persist,
which affects social, economic and development linkages. Furthermore, development
for Palestinians in East Jerusalem remains constrained.

In particular, access to basic services and the effective functioning of the education
and health sectors continue to be affected by the permit regime, checkpoints, the
Barrier, and the closure of Gaza. Israel cites security concerns for these measures.
Patients who hold West Bank ID cards and East Jerusalem residents now located on the
‘West Bank’ side of the Barrier in particular face bureaucratic and physical difficulties in
accessing East Jerusalem, which can result in delays for the entry of patients and
ambulances. Such obstacles can also impact the ability of Palestinian medical staff – who
comprise the majority of medical personnel in the six East Jerusalem hospitals – to access
their workplaces in East Jerusalem, to the detriment of patients and hospitals. Regarding the
impact of the access constraints on education, teachers and pupils with West Bank ID cards
can face delays in accessing schools in East Jerusalem.9 Improved access to East Jerusalem
from the rest of the West Bank is important for basic service provision.

In East Jerusalem, the Israeli planning and building regulatory framework continues to
constrain Palestinian growth and affect service delivery.10 The planning framework to
meet Palestinian residents of East Jerusalem with basic housing and infrastructure needs is
inadequate. Only 13 percent of the annexed municipal area is currently zoned by the Israeli
authorities for Palestinian construction, much of which is already built-up. According to the
Israeli Ministry of Justice (MoJ), some outline plans have been adjusted, and additional outline
plans are under development, to help meet the needs of Palestinian East Jerusalem
residents. However, increased effective participation of Palestinian East Jerusalemites in
planning for East Jerusalem is important to ensure that plans respond to current and future
needs.

As outlined in previous UN reports to the AHLC, sufficient housing and lack of adequate
education facilities remain of serious concern.11 The 4 February package of Israeli
measures announced jointly by Israeli Prime Minister (PM) Netanyahu and Quartet
Representative (QR) Blair included GoI agreement to encourage implementation of housing
projects in line with municipal regulations in East Jerusalem. More must be done to ensure
that the basic needs of Palestinians can be met.

In a worrying development, there were over twice the number of demolitions of

Palestinian structures as compared to the previous five months (58 as compared to 27).
These demolitions displaced 91 Palestinians (as compared to 108 in the previous five
  3
 
months).12 Thousands of 'unlicensed' homes remain at risk of demolition. Such demolitions
have a serious impact on households’ security and livelihoods; the UN continues to call for the
GoI to cease demolitions.

There were fewer displacements of Palestinians by forcible eviction in East Jerusalem

over the past five months (14 Palestinians were evicted as compared to 23), though the
practice of eviction remains of deep concern. Hundreds of Palestinians remain at risk of
forced eviction in the heart of Palestinian neighbourhoods of East Jerusalem.13

Palestinian institutions in East Jerusalem remain closed by Israeli order, notwithstanding

Israel’s Roadmap obligation regarding reopening East Jerusalem institutions.

Area C

Area C -- under full Israeli administrative and security control – constitutes 62 percent
of the West Bank, containing the routes of movement between Palestinian population
centres as well as the land and resources fundamental to the sustainability of
development and economic growth, and representing the space available for the
expansion of Palestinian cities. Area C includes the bulk of Palestinian agricultural and
grazing land and the majority of water sources and underground reserves. Moreover, Area C
is the underlying frame of territorial contiguity in the West Bank, on which most large-scale
infrastructure projects depend. Access for Palestinians to develop this land remains highly
restricted. Furthermore, access to basic services, remains a continued concern.14

Some of the needs identified in the Humanitarian Country Team’s Humanitarian

Response Plan for Area C (submitted to the GoI in January 2010) to meet a first set of
urgent needs in education and water have been addressed through the establishment
of some water infrastructure.15 Further facilitation of this Plan is necessary.

In the 4 February 2011 package agreed between PM Netanyahu and QR Blair, the GoI has
committed to prioritising and fast-tracking the construction/reconstruction of a number of
schools and health clinics in Area C from the lists submitted by OQR and the United States,
after formal submission of requests and plans. Once implemented, this would represent a
welcome start in improving access to basic services Palestinian communities.

Overall, the potential for Palestinian development of Area C at the scale required
remains heavily constrained.16 The applicable legal planning framework,17 and its
interpretation are restrictive,18 while the preparation of permit requests is lengthy and costly.
To fundamentally change the dynamic in Area C towards supporting Palestinian development,
it is important that the Israeli Ministry of Defense, including the Civil Administration (ICA),
ensures a more efficient and effective planning and permitting system that is responsive to
Palestinian needs.19 The Israeli MoJ states that the Israeli Military Commander is enforcing
planning and building laws in place prior to 1967, inter alia, to safeguard public order in the
West Bank.20

Furthermore, increased demolition of Palestinian structures continues to undermine

the livelihoods and security of Palestinians in Area C. During 2010, the highest number of
demolitions were carried out since the UN began recording in 2005; 82 percent of these were
in Area C. Over the reporting period, there were demolitions of 179 structures in Area C,
which displaced 292 people, as compared to 193 demolitions that displaced 160 people
during the previous five months. Of particular concern is the demolition of basic shelter and
livelihood structures (e.g. animal barracks and water cisterns) which has a serious
humanitarian impact on Palestinian families and communities.21 Due to the serious impact
  4
 
and implications of such demolitions, the UN continues to call for the GoI to cease all
demolitions. For its part, the Israeli MoJ asserts that demolitions are conducted in accordance
with due process guarantees, such as the right to a fair hearing and the full opportunity to act
towards the legitimization of a building by filing request for a building permit or by proposing a
planning amendment.

A specific area which faces particular challenges related to access is the ‘seam zone’,
(between the Barrier and the Green Line). The population living in this area continues to
face difficulties, including in accessing services, whilst landowners face constraints accessing
their land behind the Barrier. Israel cites security concerns for construction of the Barrier;
however, the UN has recommended that Israel take heed of the International Court of Justice
(ICJ) advisory opinion on the Barrier, including dismantling those portions of the Barrier inside
the oPt. The UN also recommends that greater movement and access be facilitated to the
‘seam zone’ in the immediate term.22

Palestinian access to and development of the rich agricultural resources in the Jordan
Valley has not been significantly expanded, which undermines the potential for
economic development. Significant areas with vast agricultural potential, mainly in the
Jordan Valley, remain closed for military purposes (18 percent of the West Bank) or
designated as nature reserves (15 percent of the West Bank). Only roughly four percent of
the Jordan Valley area is cultivated by Palestinians (compared to the Palestinian average of
25 percent of other administrative units).23

Movement and Access

The system of constraints on Palestinian freedom of movement continued to affect

movement and access of people and goods into, out of and within the West Bank.
However, building on the easing of access restrictions over the past three years, the
GoI took further action to support movement and access of goods and people into, out
of, and within the West Bank over the past five months. These are welcome measures,
which if sustained will continue to support economic development.

The number of movement and access obstacles remains at approximately 500, after
declining from 626 during the first quarter of 2009, and some removals in May 2010.24
Though the flow of traffic between major Palestinian cities has improved over the past years,
the remaining obstacles continue to block main entrances to a number of cities and towns,
constraining access to East Jerusalem, the ‘seam zone’ and the Jordan Valley in particular,
and impacting movement, access to services and development.25

During the reporting period, the GoI agreed to issue 5,250 new permits for Palestinians to
work in Israel; when distributed these will increase Palestinian access to the Israeli market.26
Working hours at six checkpoints were extended and tourist access via buses has been
allowed at all crossings into Bethlehem. There were also an increased number of permits to
Jerusalem provided over the Christmas holiday. The extended hours at Allenby crossing have
been implemented permanently and Israeli Arabs continue to be allowed to access Palestinian
cities.27

There have been some measures to improve the movement of goods; however, the
continued system of constraints on the movement and access of goods affects trade
and private sector investment, ultimately bearing on sustainable economic growth.
Restrictions relate to the crossing of ‘dual use’ materials, delaying the entry of production
inputs into the West Bank. Israel cites security concerns for such restrictions. Such delays
reduce the efficiency of production. Private sector recovery also requires predictable access
  5
 
to markets outside the West Bank. In 2010, there was a five percent increase in the export of
goods and services from the West Bank to Israel (after it contracted by 30 percent in 2008-
2009). In this regard, the on-going GoI expansion of Sha’ar Ephraim crossing is welcome,
building on the previous expansion of Jenin and Tarqumyia crossings where there are
improvements in the time it takes for goods to cross. The ‘known trailer’ system has helped
relieve congestion at Tarqumyia crossings. Allowing goods through containers at Jalameh
would further support improved efficiency at the crossing. Furthermore, through cooperation
between the Israeli Ministry of Agriculture and the relevant PA institutions, more predictable
access for meat and dairy products into the markets of East Jerusalem from the rest of the
West Bank was realised. Greater facilitation of the predictable entry of inputs, and the crossing
of goods out of the West Bank, is important to ensure minimal transaction costs are incurred,
and to improve the competitiveness of Palestinian products.

The continued macroeconomic improvements in the West Bank, including real GDP
growth of 8 percent in 2010, continue to be supported through public expenditure and
donor support. Such growth was complemented by earlier easing of closure obstacles
implemented by the GoI. Restructuring the economy towards more sustainable growth will
require much greater facilitation of the tradable goods sectors.28 The PA has taken some
steps over the past five months, such as the creation of the investment law, which will help
attract investment in private sector development. The GoI has also taken some measures to
ease movement and access. Building on this progress, further measures to improve access
to internal and external markets, and support sustainable private sector-led growth, are
required.

Gaza

Since the last AHLC, socio-economic, human rights and security conditions remained of
concern, given Israeli closure measures, misguided de facto governance and lack of
Palestinian unity based on the Palestine Liberation Organization (PLO) commitments,
Palestinian militant activity, smuggling of weapons, and Israeli military operations.29

The security situation has been characterized by an uneasy calm, which has not
prevented many acts of violence and significant tensions between Israel and Gaza,
particularly during an escalation in mid-March, leading to casualties. During the reporting
period, Palestinian militants, often operating from Palestinian civilian areas, launched 187
indiscriminate rockets and mortars at Israeli civilian areas, while the IDF conducted 49
airstrikes, 63 incursions, and 50 naval strikes at Palestinian targets. One Israeli soldier was
killed and another injured in an incident of ‘friendly fire’. Five civilians were injured by actions
of Palestinian militants including three Israelis and two foreign workers in Israel. A total of 24
Palestinians were killed, including six civilians, and 114 Palestinians were injured (including 87
civilians) by IDF actions. In the most recent escalation, Grad-level rockets were fired towards
major Israeli population centres deep in the country, and an Israeli strike for which Israel
expressed regret killed three Palestinian children and their uncle and wounded 13 other
civilians on 22 March. The Secretary-General has condemned rocket fire at Israeli civilians; he
also condemned the killing of Palestinian civilians on 22 March. It continues to be essential for
all parties to strictly observe international humanitarian and human rights law, cease acts of
violence and demonstrate maximum restraint. The UN has supported efforts to restore a
fragile calm, the maintenance of which is essential to protect civilians and enable other
concerns to be meaningfully addressed.

The Palestinian Authority is not present in Gaza, resulting in a disconnect between

Gazans and many PA institutions.

  6
 

Hamas remains in de facto control of the Gaza strip and continues to reject basic principles of
the peace process. The de facto authorities in Gaza have furthered efforts to place controls
on Gazan civil society, closing down several civil associations during the reporting period. On
30 November, the Sharek Youth Forum was issued with a temporary closure order at their
offices and on 27 February the de facto local authorities took over assets of the Palestinian
Investment Fund in Gaza.30 The de facto local authorities’ forces also clamped down against
protestors and targeted students and journalists in mid-March, resulting in many serious
injuries. These and other actions give rise to human rights concerns.

Israel continues to pursue a policy based on closure of the Gaza Strip by land and
blockade from sea, citing its obligation to protect the security of Israel and its citizens.
In this context, the human rights situation of the civilian population, particularly as regards
freedom of movement into and out of the territory, remains of serious concern, there are
continued humanitarian needs, and recovery is not proceeding at the scale and pace
necessary. While the economy shows nascent signs of recovery -- Gaza GDP grew by 15
percent in 2010 (still 20 percent below the 2005 level) -- unemployment remains high (37.4
percent).31 Much more significant progress is necessary.

A recent report by Paltrade, in cooperation with the Office of the Quartet

Representative, has begun to track the impact of the 20 June Israeli policy decisions to
adjust its closure regime and allow a greater amount of goods to enter Gaza. Whilst the
average annual sales increased from June 2010 to January 2011, they remain only 57 percent
of the sales in 2005. Businesses are also currently operating at 50 percent of their capacity,
as compared to 2005. Availability of power and raw materials continue to constrain
businesses.32 There are some positive signs, including an increase in the average capacity
utilization rate – the extent to which factors that contribute to productivity, such as resources,
are utilised -- by six percentage points in January 2011.
Figure 1: Number of Imported Truckloads to Gaza
As reflected in figure 1, the
number of truckloads that 2,807
have entered Gaza has 3,000
increased since the Israeli 2,500
policy decision (June 2,000
2010), but remains far 1,500
940 1,018
below the 2007 levels. The 1,000 552
volume of non-food imports, 500
including raw materials 0
increased during the second- Jan-May 2007 1 Jan-19 June 20 June 2010- 19 20-26 February
half of 2010, as compared to (w eekly average) 2010 (w eekly Feb 2011 (w eekly
average) average)
the first half; however, the
share of non-food items
continued to range between 40-50 percent, compared to more than 80 percent before the
imposition of the closure.

The Secretary-General took positive note of the decision by the Israeli Security Cabinet
(8 December) to allow exports from Gaza, consistent with security conditions. The
resumption of exports is key to reviving Gaza’s economy and its legitimate business sector.
During the reporting period, 73 truckloads of strawberries, 17 truckloads of flowers and one
tonne of peppers were exported from Gaza.

  7
 
It is important that the facilitation of exports comprise all commercial goods, subject to
security considerations; crossing capacity should be enhanced as necessary to meet
export demands; and it is important that goods be able to cross to both to foreign
destinations and to the West Bank. Exports remain important to economic recovery in
Gaza. According to Paltrade, in 2006, there were approximately 2,500 truckloads of
agricultural produce exported from Gaza; in 2010 there were only 215 truckloads. In this
regard, the agreement of PM Netanyahu and QR Blair in the 4 February package to further
promote exports is welcome. Paltrade reported that 57 percent of businesses are ready to
export within months; however, industries reported that the West Bank and Israel are the
major export markets,33 while exports are currently only being allowed to other destinations for
certain goods.

It is important that crossing capacity meet the demand for imports and exports, in line
with the Israeli policy decision. Current daily import capacity at Kerem Shalom crossing
is 250 truckloads and 40 truckloads of wheat/animal feed through a conveyor belt;
export capacity is 50 truckloads. Citing security concerns, the GoI closed Karni conveyor
belt, and is expanding capacity at Kerem Shalom crossing whilst the PA is expanding the
crossing inside Gaza. To ensure the necessary capacity is available, including in the event
that Kerem Shalom is closed down for any reason, it is important that infrastructure be
maintained at Karni.

The GoI has now approved a total of US$155.4 m of UN projects involving controlled
items (particularly aggregate, iron bar and cement), as part of a flow of
construction/reconstruction in Gaza, in line with PA priorities. This is a welcome
development. On 15 October, work on 151 Housing Units in Khan Younis was completed.
Unfortunately, the UNDP Khan Younis Wastewater Treatment Facility remains
underfunded. Donors are asked to consider providing the additional US$42m to ensure
implementation of this critical project.

As outlined in the UN’s previous reports to the AHLC (April and September 2010),
significant needs remain in the areas of housing, education, health, energy, and water
and sanitation.34 A further steady flow of approvals will be needed to meet these
critical needs. Donors that pledged funding in Sharm El Sheikh for the reconstruction of
Gaza are encouraged to begin seeking avenues for expenditure, including through the PA/UN
oPt Multi-donor Trust Fund (see Section II below).

To enable the approved programme of work to move forward, coordination

arrangements for the entry of material must be streamlined. There has been a consistent
gap between the entry of material requested and that which actually enters the Gaza strip. In
recent weeks, positive steps have been taken to address this gap, including GoI approval of a
one-time opening of Sufa crossing to allow UNRWA to move in 40,000MTs of aggregate
previously stored at the border to Gaza; at the time of writing, over 51,000MTs had been
moved into Gaza. In light of increased transfers occurring at Kerem Shalom, longer-term
improvements in GoI coordination procedures will help ensure that construction material can
enter in a smooth and predictable manner, without adversely affecting the entry of other
goods. Discussions are currently ongoing regarding development of weekly schedules to
address any projected gaps in the delivery of material, as well as improving communication
procedures and expediting responses to requests for the entry of material.

Greater liberalisation of the import of construction materials through the legitimate

crossings into Gaza (including aggregate, iron bars and cement) is increasingly
important for recovery. Since the 20 June Israeli Cabinet decision expanded the flow of
other commercial goods through the crossings, there has been a significant increase in the
  8
 
amount and a reduction in the pricing of construction material coming through the tunnels.35
Ensuring these goods are available through the legitimate crossings for the private sector is
essential for Gaza’s long-term recovery.

The movement of people out of Gaza remains extremely limited. During the reporting
period there were continued improvements in the movement of certain categories of
people beyond humanitarian cases out of Gaza. Further easing of movement is
important for the human rights and dignity of Gazans. The number of business people
allowed to exit Gaza increased to roughly 296.5 per week (as compared to only 102 in the
month of June), which is important to support sustained economic growth. Furthermore, 87
percent of all applications to cross Erez checkpoint for referral patients were approved in
February 2011 (see figure 2); this is the highest approval rate since January 2008. Consistent
approval of exit for patients is important.36 Further easing of the movement of increased
categories of people remains essential, in particular for students.

Figure 2: Rate of Approval for Patients to Exit Gaza via Erez

Reiterating the AHLC Chair’s
summary from September, 120
additional lifting of
restrictions, including for 100
exports, trade and the
passage of people, is critical 80
Delayed
for the situation in Gaza to
60 Denied
begin to assume some
semblance of normality. The Approved
40
AHLC Chair also noted that
assistance intended for the 20
people of Gaza should be
channelled through 0
Nov
Jan

Jun

Jan
Jul
Mar
Apr
Feb

Aug
Sep

Feb
Oct
May

Dec
established land crossings. In
the immediate term, an
increase in the scale of 2010 2011
exports; increased freedom
of movement of people into and out of Gaza; and the return of the PA to the crossings
all represent achievable steps that are fundamental to Gaza’s long term recovery.
These can only be achieved if the ‘calm’ is respected.

Israeli Staff Sergeant Gilad Shalit continues to be held captive by Hamas, now for over
1,700 days. The UN continues to call for humanitarian access to be granted without
further delay and for his release. We also continue to express hope that a prisoner
exchange agreement will be finalized and implemented.

We further note that approximately 6,000 Palestinian prisoners remain in detention in

Israeli jails, including around 300 children and some persons held without charges. We
continue to note the importance of releases of Palestinian prisoners to the Palestinian
Authority.37 All parties must respect in full the provisions of international humanitarian
law.

  9
 

2. PA’s State-Building Agenda

Planning Efforts

The PA has drafted the Palestinian National Plan 2011-2013 (PNP) which will comprise
the PA’s key strategic objectives that underpin continued efforts to support the state-
building agenda, including redressing inequities, investing in rural development, and
addressing constraints to access. The policy framework focuses specifically on improved
service delivery, increased economic interdependence, improved infrastructure and effective
and accountable public institutions. The PNP, therefore, reflects the PA’s continued
commitment to improve state institutions and government functions.

The PA continued to reduce its dependence on external donor assistance through targeted
reform efforts. As a result the PA’s deficit for recurrent spending – which is financed by
donors – has declined to less than US$1bn in the 2011 draft budget. Continued and
predictable support to the PA’s budget to finance this deficit is essential to ensure
stability and to support reform efforts. In this regard, a donors’ conference at the
appropriate time in 2011 will be an important opportunity to reaffirm support for the
PA’s plans.

Since March 2009, the UN has made state-building a core priority of its work and an
important complement to its already well-established humanitarian work. The UN
articulates its state-building and development priorities, in support of the PA’s plan, through a
Medium Term Response Plan (MTRP). Based on the sector strategies and the PNP 2011-
2013, the UN is revising its MTRP to cover the same period, reflecting the shared outcomes
and outputs that UN agencies will contribute to in six key areas: 1) Governance, Rule of Law
and Human Rights; 2) Livelihoods, Employment and Productive Sectors; 3) Health; 4)
Education and Culture; 5) Social Protection; and 6) Infrastructure and Water. The pursuit of
the Millennium Development Goals (MDGs), including the delivery of services (and other
development outcomes) are central to the ‘goods’ which a state provides to its citizens and
therefore core to the UN’s state-building objectives. Furthermore, the UN supports state-
building through the full spectrum of Palestinian society, including NGOs, civil society and the
private sector.

To help ensure funding is available for these development objectives, a PA-UN Multi-
donor Trust Fund for the oPt has been established. This fund is uniquely designed to
support areas which are central to the success of the PA’s state-building agenda, through UN
projects -- where the UN has a clear mandate and comparative advantage to complement PA
efforts. Donors are urged to contribute to this fund; the flexibility of such a pooled funding
mechanism enables the UN to respond in a timely and appropriate manner to meet early
recovery and development needs.

The UN also launched its Consolidated Appeal (CAP) for 2011. Developed in full
consultation with the PA, the CAP seeks $575m to address urgent needs in Gaza and the
West Bank, including East Jerusalem. Timely and adequate funding to the projects recorded
in the CAP will help to prevent further deterioration in the living conditions of Palestinians. As
described in Section I above, residents in Gaza and Area C of the West Bank remain the most
vulnerable.

Support to both the UN/PA oPt Trust Fund and the CAP should be considered by
donors as critical complements to the PA’s state-building efforts.

  10
 
PA’s Institution-building Progress

The following section outlines the status of PA institution-building progress, service

delivery and infrastructure, as an outcome of the PA’s investment in the state-building
agenda with the support of partners. This is complemented by a more thorough analysis in
Annex II, based on the UN’s close cooperation with the relevant PA agencies in the strategic
areas where the UN focuses its development and recovery efforts.
In governance, rule of law & human rights, the PA has made significant progress in reform
and development efforts and has demonstrated the institutional capacity to carry out core
governance functions. The PA’s improved ability to plan and budget in an effective manner is
clear, whilst several normative functions of governance, including transparency, freedom of
media, and mitigation of corruption have been upheld. There have also been significant
advances in the rule of law and justice sector, including the drafting of legislation, and
regulations to ensure compliance with international human rights norms as well as improved
access to legal services and enhanced institutional capacity. The PA has also reflected an
institutional commitment towards protecting human rights, a core function and responsibility of
any state.
Regarding livelihoods and productive sectors, the PA continues to support labour policies
towards sustainable economic growth, economic independence and national prosperity.
Investment in a sound policy framework towards achieving high standards, reflects the PA’s
capacities to guide the development of a well-trained, appropriate, and protected labour force
– the engine of the future Palestinian state. In the agriculture sector, the PA continues to
invest in sound policies to support the development of this important sector.
In the area of basic services, the PA has made significant progress in promoting the right to
education for all. The health care system in the oPt is well developed in areas under PA
authority; the range, quality and availability of public health services in oPt and key health
indicators, such as infant mortality and life expectancy, bear comparison with those in
neighbouring states such as Egypt and Syria. Social protection was prioritised in the state-
building programme, and the high level of inter-ministerial engagement, as well as the
constructive interaction with donors and UN agencies in this sector, reflects the PA’s capacity
to grasp the vast and inter-sectoral nature of this important portfolio.
Regarding culture, the PA has demonstrated institutional commitment to support the
promotion and protection of the richness and diversity of Palestinian culture through effective
planning, promotion of standards and legislation and ongoing efforts to manage the cultural
resources in the oPt.
In support of infrastructure development, the physical foundation for the state-building
agenda, the PA’s continued investment in physical works and institutional development
signals the institutional readiness to further enable growth and development.
The Palestinian population is also very diverse, and the refugee population requires
particular consideration.38 This population is more socio-economically disadvantaged as
compared to non-refugees,39 access to community structures is more limited, and access to
services is not consistent, in part due to access restrictions. UNRWA provides assistance,
protection and advocacy for some 4.8 million registered Palestine refugees in the Middle East.
The Agency’s services encompass education, health care, relief, camp infrastructure and
improvement, community support, microfinance and emergency response, including in times
of armed conflict. There has been significant progress in the coordination between the
various PA line ministries and relevant UNRWA services, towards improved access of
services by refugees.40
  11
 
This report concludes that, in the limited territory under its control and within the constraints on
the ground imposed by unresolved political issues, the PA has accelerated progress in
improving its governmental functions. In six areas where the UN is most engaged,
governmental functions are now sufficient for a functioning government of a state.
This reaffirms the World Bank’s assessment in September 2010, noted by the Quartet,
that ‘if the PA maintains its current performance in institution-building and delivery of
public services, it is well positioned for the establishment of a state at any point in the
near future’. This is a significant achievement arising from the commitment of the PA and
strong donor backing. In parallel, Israeli measures to facilitate movement and access have
also supported economic activity.

The primary focus as we enter final months of the Programme of the Thirteenth
Government is to address the physical and political factors that constrain this
programme from realising its full potential. It is vitally important that the state-building
and political processes be brought into alignment by September 2011. Measures of
occupation which stifle Palestinian life need to be fundamentally rolled back by more
far reaching Israeli actions to match the progress of the state-building programme. In
addition, it is of the utmost importance that the parties overcome the current impasse
and return to negotiations to seek a framework agreement on permanent status that
resolves all core issues, ends the occupation that began in 1967, ends the conflict and
realises the two state solution, and the UN will continue to engage within the framework
of the Quartet to further this vital objective.

The UN continues to support efforts to achieve real progress towards unity within the
framework of the Palestinian Authority and the commitments of the Palestine Liberation
Organisation.

  12
 

Annex 1: Previous UN Recommendations in the April and September 2010 AHLC

Reports:

This report’s analysis and recommendations build on the UN’s April and September 2010
reports to the AHLC. Whilst there has been some progress in the implementation of a
number of the previous recommendations, both by the parties and AHLC members, many
of the areas remain relevant to achieving further important progress.

Economic Development
1. PA austerity measures and reform efforts should be pursued to continue to improve the
fiscal situation, as well as the effectiveness and efficiency of institution building efforts.
2. Donors should increase their budgetary assistance, ensuring that predictable support is
available to meet the PA’s recurrent expenditures.
3. Donors are encouraged to support UN recovery and development efforts through the
PA/UN oPt Trust Fund, including for Gaza, as a complement to efforts implemented directly
by the PA. Donors are also encouraged to continue to address humanitarian needs through
the Consolidated Appeal (CAP).
Movement & Access
4. In the context of continued security cooperation, further and more far-reaching steps to
enable greater movement and access are needed. Urgent steps are necessary by the
Israeli authorities to improve access to East Jerusalem, the ‘Seam Zone’ and the Jordan
Valley, as well as for the removal of additional closure obstacles blocking key routes into
urban centres.
5. Consistent with the Agreement on Movement and Access, to improve livelihoods and
enable development, Israeli facilitation of the access to and development of land and
resources within the Jordan Valley is urgently required. Movement of people and goods
into the Jordan Valley should also be facilitated.
6. Israel should take heed of the International Court of Justice advisory opinion on the Barrier.
7. Improved Palestinian access to the ‘Seam Zone’ should be enabled by Israeli authorities, in
particular to facilitate access to agricultural land; Palestinian access to health services
should also be facilitated.
8. Removal of further Israeli restrictions on access to internal and external markets is also
critical to enable private sector growth.
9. Increased access for people and goods should be provided between East Jerusalem and
the rest of the West Bank by Israeli authorities.
West Bank Development
10. Palestinian service delivery in the West Bank should be facilitated by the Israeli authorities
through the planning and permit processes. These processes should also be more efficient
to meet critical development and infrastructure needs.
11. Israeli facilitation of the implementation of all of the interventions in the Humanitarian
Response Plan is critical, as a first step towards meeting urgent needs.
12. The PA is encouraged to continue its reform efforts, including within the Palestinian Water
Authority (PWA), and the development of a roads masterplan by the Ministry of Public
Works and Housing, to ensure the effective planning and execution of development

  13
 

projects. The support of the international community is required for projects identified as
priorities by the PA, including major infrastructure projects.
13. Israeli authorities should cease demolition of Palestinian structures.
14. Increased areas currently designated as closed for military or other purposes, as well as
‘nature reserves’, should be opened to Palestinian use by the Israeli authorities.
Gaza
15. A durable solution to the challenges of security – including smuggling – unity and crossings
must be found within the framework of Security Council Resolution 1860. Though
16. All actors must make the necessary adjustments to allow for the further flow of goods into
Gaza without undermining Israel’s security. Crossing capacity should be expanded by the
Israeli authorities in cooperation with the PA to meet real demand; additional capacity will
be necessary with an expanded scope of work approved for implementation. The PA
should continue to improve and streamline coordination mechanisms for the import and
export of commercial goods.
17. Increased predictability in imports and increased exports are needed for sustainable
economic growth. In particular, additional categories of raw material, particularly for
construction, should be allowed to enter for the commercial sector. Efforts are necessary to
promote greater commerce between the West Bank and Gaza.
18. Movement of further categories of people into and out of Gaza should be facilitated by the
Israeli authorities. Restrictions on the access of civilians to all areas of Gaza’s land and
sea should be eased by Israeli authorities to the fullest extent possible.
19. The internal understanding on the collection of revenues to ensure financing is available for
industrial fuel for the Gaza Power Plant should be fully implemented; the international
community should support longer term solutions for the supply of gas to meet energy
needs.
20. Israeli authorities should simplify procedures for the entry of construction materials;
approve the proposed programme of UN work that will allow a steady ‘flow’ of work in Gaza
to move forward; and approve a steady flow of material required for the programme’s
completion. Donors are encouraged to continue to fund new and suspended projects for
Gaza.

PA Reform Efforts
Macro-Fiscal
21. It is important that the PA make full use of the new computerized accounting system.
22. Despite the significant progress in building a more enabling environment for the private
sector, the PA is encouraged to continue to pursue reforms to develop clear, agreed upon
export strategies, increase the competitiveness of Palestinian goods, reduce high
transaction costs, and improve the legal and regulatory framework.
Rule of Law
23. To build on gains in law enforcement, the PA is encouraged to support further reforms to
improve the rule of law – in particular the drafting of the new Penal Code.
24. It will be important that the PA ensure that continued security sector reforms are achieved,
whilst empowering the Ministry of the Interior to lead security efforts and ensure coherence
under the security sector strategic plan. The international community is encouraged to
continue to provide critical support to this process.
25. The PA should continue and strengthen reform efforts aimed at further defining and
clarifying the roles and responsibilities of the Ministry of Justice, High Judicial Court, and

  14
 

Attorney General’s Office in order to consolidate the gains made thus far and clear the way
for further progress.
26. Continued efforts by the PA are also required to maintain the independence of the court
system from political pressures.
Social Development
27. The PA is encouraged to continue to pursue policy efforts to improve education quality
assurance, increase the number of teachers in the sciences and curb student high drop-out
rates.
28. The PA is encouraged to maintain progress on infrastructure development and
establishment of a new national health insurance system, these critical initiatives to ensure
the goal of providing every Palestinian with adequate and high quality health services.
29. Enacting the Juvenile Justice Law and the Child Law is a critical.
30. Social development interventions will benefit from greater cross-sectoral integration, by the
PA and donors, ensuring that interventions in each sector leverage others.
Infrastructure
31. The PA is encouraged to finalize the Master Plan for the housing sector to help articulate
the relationship of housing development with the private sector, and support a state-
guaranteed lending program as well as the formulation of general housing construction
specifications.
32. Further reform within specific PA agencies should continue, to help ensure effective
planning and implementation of projects.
33. The PA is encouraged to continue reforms in the electricity sector to decrease subsidies
and ensure greater coverage.
34. In the water sector, the PWA should continue reforms aimed at improving fee collection,
minimizing theft, and ensuring adequate maintenance services.

  15
 

Annex 2: UN Analysis of Institution Building Progress

Governance, Rule of Law & Human Rights

The PA has made significant investment in reform and development efforts and has
demonstrated the institutional capacity to carry out core governance functions.

Governance in the oPt, inclusive of rule of law and rights, continues to be affected by
multiple variables: continued occupation limits the administrative reach of the PA, whilst
unity remains important to the PA’s ability to fulfil its functions throughout the oPt.

Governance

There have been five notable advances in Governance guided by PA investment in

reform and development. First, the PA has improved its ability to plan and budget
effectively. Nowhere can this be seen more clearly than in the Programme of the
Thirteenth Government (August 2009) and its update, The Homestretch to Freedom
(August 2010) which have already served as the basis for investments in technical
assistance, public administration reform, new infrastructure and planning.

The launch of the forthcoming Palestinian National Plan (2011 – 2013) continues to further
these efforts and will provide the basis for robust public financial management, improved
aid coordination and support to the Palestinian people. These and increasingly consultative
planning exercises have been based on well-developed sector strategies. Likewise, as a
crucial factor to guide planning, development of the administrative map of the territory is an
important exercise.

Second, the improved planning and budgeting process is supported by a monitoring

and evaluation unit at the Ministry of Planning and Administrative Development
(MoPAD). The launch of the Palestinian Aid Management System, (DARP) will enable
better coordination and transparency in programming and improve aid effectiveness,
helping to ensure greater alignment with the PA priorities.

Third, the PA has upheld

several normative functions Figure 3: Property Tax Collection
of governance, including
transparency, freedom of
media, and mitigation of
corruption (e.g. the
establishment of a new Anti-
Corruption Commission). For
example, property tax
collections have increased
almost threefold between
2006-2010 (see figure 3).
With respect to increased
collection of clearance revenue, discussions between the GoI and PA to enhance
collection, as reflected in the package agreed by PM Netanyahu and QR Blair on 4
February, are important. The PA is encouraged to continue public administration reforms,
particularly those that promote integrity, quality services, and lead to collection of own-

  16
 

source revenues. Implementation of the UN Convention Against Corruption will provide a

framework to increase accountability.

Fourth, the PA has worked towards conformity of domestic standards, legislation,

procedures and systems with international rules and standards as set out in relevant
conventions and agreements, in order to enable immediate ratification as soon as
statehood is achieved. Maintaining its commitments to the principles of relevant
international conventions, which it cannot ratify at present, and continuing to strengthen its
engagement in international coordination and cooperation, will be important in this regard.

Finally, elections are key to legitimacy and enshrined in the Palestinian Basic Law
(article 26). On 8 February, the PA Cabinet called for municipal elections to be held on 9
July and additional presidential and legislative elections to be held as soon as possible.
However, Hamas has rejected these calls and has not allowed preparations to take place in
Gaza.

Rule of Law
Figure 4: Criminal offenses, persons in custody
and convicted offenders, West Bank
There have been
significant advances in
the rule of law and 18,000
justice sector, including 16,000
the drafting of legislation, 14,000
and regulations to ensure 12,000
compliance with 10,000
Number

international human rights 8,000

norms as well as 6,000
Reported criminal offenses
improved access to legal
4,000 Number of persons in
services. PA Institutional custody
2,000
capacity development Total number of convicted
has enhanced legislation- 0 offenders
drafting capacity, 2008 2009

including for a draft Penal Source: PCBS, Statistical Abstract of Palestine No. 11, December 2010.
Code, and towards draft
legislation for establishing the Palestinian Chamber for Arbitration and Mediation. Other key
legislation - such as the Palestinian Juvenile Justice Law - is also under review. New
judges and prosecutors have been recruited, and a legal skills diploma has been designed
for continuing professional training.

There has been an introduction of an updated automation system of court-cases

(MIZAN2) as well as increased efficiency of court work, both of which have helped
reduce the backlog of cases. Moreover, a Justice Information Centre to institutionalize
the justice information and media systems was recently established and staffed.
Establishment of court information points is also expected to promote public awareness.

The continued divide between the West Bank and Gaza presents a major challenge
to coherence between legal systems. Hamas is gradually replacing the formal judicial
system with another system. Hamas appointed new judges, prosecutors, police officers
and Ministry of Justice staff in Gaza, and has not invested in the capacity building of these
new staff. Furthermore, the traditional/tribal informal justice systems have been replaced

  17
 

by ‘reconciliation men’. Some positive steps include the recent meeting of the Ramallah
and Gaza branches of the Palestinian Bar Association after over a yearlong absence.

The lack of clarity in roles and responsibilities of the various judicial organs,
including security/military courts, is an ongoing challenge that the PA should
continue to address. Other on-going challenges result from the absence of the Palestinian
Legislative Council, with the result that legislation continues to be passed by Presidential
decree rather than in parliament.

Human Rights

Protecting human rights is a core function and responsibility of any state; the PA
has reflected an institutional commitment towards this objective. The PA should be
guided by international conventions and standards to ensure that the fundamental
freedoms and rights of all Palestinians are respected.

The PA has made numerous statements committing itself to upholding international

human rights standards, and, indeed, the Palestinian Basic Law also contains several
stipulations to that effect. During the February visit of the High Commissioner for Human
Rights, PM Fayyad noted his government’s readiness to enter into a full memorandum of
understanding with the Office of the High Commissioner for Human Rights and ministers
confirmed the willingness of the PA to ensure access to detention facilities and their desire
to work on a national human rights plan of action.

Further progress is
needed to ensure that Figure 5: Number of complaints received by the Palestinian
Independent Commission for Human Rights for arbitrary
basic freedoms in the
detention and non-compliance with proper legal
West Bank are not procedures during detention
limited. In a positive step
the government decided
that all civilians detained
500
will have their case
West Bank
submitted to civilian courts
Number of complaints

400
– rather than the military
courts. The implementation 300
of this decision by the
General Intelligence 200
Service will be closely
100
monitored, and other
relevant agencies are 0
encouraged to adopt a Apr May Jun Jul Aug Sep Oct Nov Dec Jan
similar approach. The PA is 2010 2010 2010 2010 2010 2010 2010 2010 2010 2011
encouraged to respect non- Source: ICHR, "Monthly Report on Violations of Human Rights and Public Freedoms
violent demonstrations, and in the Palestinian-controlled Territory", various issues.
ensure due process be
afforded to all those facing
arrest or detention. The PA should also continue to uphold and invest in the rule of law and
basic rights for all, including criminal justice; the monitoring and reporting of arbitrary arrest
and detention will continue.

  18
 

Livelihoods & Productive Sectors

Employment

The PA has made significant progress in support of labour policies important for
sustainable economic growth, economic independence and national prosperity.
Investment in a sound policy framework towards achieving high standards, reflects
the PA’s capacities to guide the development of a well-trained, appropriate, and
protected labour force – the engine of the future Palestinian state.

The PA is investing in six important areas: 1) ensuring opportunities for decent work; 2)
developing vocational training; 3) promoting the cooperative sector; 4) improving working
conditions; 5) facilitating consultation and effective dialogue; and 6) strengthening regional
and international cooperation.

As part of the ILO’s 2008 Declaration on Social Justice for a Fair Globalization,
promotion of decent work is key to the equitable development of the labour force.
The Ministry of Labour has embraced this important global agenda, engaging with ILO
towards assessing needs and defining indicators of decent work towards improving on this
base.

The PA has also expressed its commitment to respecting international labour

standards. The 2000 Labour Law sets the basic legislative framework for the protection of
workers’ rights; this is in line with key ILO conventions and recommendations. The Labour
Law also prompted the establishment of the Tripartite Labour Policies Committee
mandated to lead development of labour and social policies, revitalised in February 2010.

Continued investment in several areas will further strengthen the development of the
labour sector. Strengthening labour market governance will be important to ensure
effective policy development. Enhancing employability, job creation and private sector
growth will be key to ensure that Palestinians receive the appropriate training to meet
market needs; this will require continued linkages with the education sector.

Building on the strong foundation to support labour rights, further social dialogue
through effective role of the Tripartite Committee for Labour Relations will help
ensure that labour force interests are protected.

Improved labour market policies and services are at the centre of the Ministry of
Labour’s reform process aiming at increasing the employability of the labour force to
better access decent and productive work. In particular, supporting the national
cooperative reform process and revitalizing the Technical Vocational Education and
Training (TVET) Strategy are important, as is the establishment of the National
Employment Agency and reactivation of the Palestinian Employment Fund and Social
Protection.
Throughout these areas, the promotion of gender equality and women’s empowerment, as
well as promoting an entrepreneurial culture and self-employment amongst young women
and men will be key.

  19
 

Agriculture Figure 6: Distribution of employed persons,

Q4/2010 (PCBS)
Agricultural production
continues to employ an
important portion of the
population, with 31 percent of
12.5 Agriculture, fishing and
the land in the West Bank and forestry
Gaza Strip currently cultivated. Mining, quarrying and
The PA continues to invest in 10.7 manufacturing
38.7
sound policies to support the Construction
development of this sector. Commerce, restaurants
12.7 and hotels
The PA has developed a Transportation, storage
comprehensive agriculture and communication
5.9 Services and other
strategy, A Shared Vision and 19.5
branches
complementary Action Plan
(2011-2013). These were
developed through a
consultative process including
farmers – the key stakeholders. Efforts have also been made to ensure that gender is
mainstreamed throughout the strategy and action plan.

Crop production has benefitted from the PA’s investments in improved community-
based infrastructure, including the development of agriculture roads, and the
rehabilitation of land. There has also been investment in improving water management
systems, and rehabilitation of irrigation systems for agricultural production in Tulkarem,
Jenin, Qalqilya and Tubas; 14 percent of cultivated areas are now irrigated. This has been
complemented with the development of water cisterns throughout the West Bank to
promote rain-fed agriculture; these have suffered from increased demolition, as per Section
I above.

To help ensure farms can expand production, credit facilities are provided,
complemented with several agricultural services. The Palestinian National Centre of
Agricultural Research and three agricultural colleges contribute to a growing agricultural
research base. Several government bodies and partners provide agricultural extension,
training and veterinary services to promote new technologies and protect against diseases.
Limited financing is available for agricultural and rural development, as is agricultural
insurance to mitigate the risk in agricultural development.
The PA is also investing in improving standards for production and processing,
which helps to ensure access to markets. Building on recent efforts, the National Food
Safety Initiative provides a multi-sectoral framework to further develop standards.

To ensure that investments in agriculture yield in the greatest gains for Palestinians,
access to markets must be improved. Furthermore, approximately 62.9 percent of
arable land is located in Area C – ensuring further access to this land is important for
development of the sector (as in Section I).

  20
 

Basic Services

Education & Culture

Figure 7: Number of schools (PCBS)
The PA has made
significant progress in
2700
promoting the right to
2650
education for all. For 2600
instance, the Ministry of 2550
Education and Higher 2500
Education (MoEHE) has 2450
demonstrated a 2400 Number of schools
commitment to the 2350
Education for All (EFA) 2300
movement, and leadership 2250
in achieving the MDGs, 2200
2150
which have been
2006 2007 2008 2009 2010
incorporated into planning
and referenced in ministry
policy. This is reflected in continued investment in the building of schools to accommodate
students. Development of an appropriate legal framework for education also represents an
investment in state-building.41

A significant achievement was the signing of the Joint Financing Arrangement (FA)
by the MoEHE with four donor partners and other PA agencies.42 The JFA represents
a concrete step towards a more programmatic and Sector Wide Approach (SWAp) in the
MoEHE’s implementation planning. The JFA harmonises methodologies in support of the
MoEHE’s Education Development Strategic Plan (EDSP) through support to yearly
operational plans and by contributing approximately US$90mn over a three-year period
(2011-2013). This represents commitment to the Paris Declaration Principles on Aid
Effectiveness and national ownership to drive reform and development in the field of
education. Focusing on further capacity development in education planning and
management will help ensure effective implementation of the EDSP.

Progress was also made towards the implementation and monitoring of the EDSP
2008-2012 that focuses on a range of programmes towards improving all aspects of
the sector, including physical infrastructure, student welfare, building teacher capacity and
improving school administration.43 In support of strategic planning and management, the
MoEHE also strengthened its Education Management Information System with the UN’s
support. Moreover, with the UN’s support, the MoEHE has initiated the development of a
national policy for Early Childhood Care and Education (ECCE).

In addition to developing and upholding a strategic vision oriented towards access,

management and relevance, the MoEHE has prioritised the provision of quality
education. Towards this end, the MoEHE advanced the implementation of the Teacher
Education Strategy through the establishment of a Commission for Developing the
Teaching Profession (CDTP) and Teacher Education Reform, with partners.44 The MoEHE
also finalized a strategy on Technical Vocational Education and Training (TVET) with the
support of GIZ to ensure skills development meets labour market needs.

  21
 

The PA has also made two significant intersectoral achievements in support of the
promotion of the right to education for all. First, the development of the Cross-sectoral
National Gender Strategy, Promoting Gender Equality and Equity (2011-2013), led to the
creation of gender units in 24 ministries including the MoEHE, including the provision of a
strategic framework for the ministry to mainstream gender into education.45 Second, the
PA Strategic Multi-sector Plan for East Jerusalem (2011-2013) -- the first of this kind --
includes a concrete analysis of challenges in accessing quality education in East Jerusalem
and provides a concrete strategic response to address school infrastructure needs,
strengthen education support structures, and improve financial and administrative
capabilities and systems.

There are separate educational systems functioning in the oPt for basic education:
261,793 children are enrolled in UNRWA schools in the West Bank and Gaza. Both
UNRWA and MoEHE are working together towards further strengthening their linkages and
harmonizing their policies. This will increase coherence for any future developments in the
education sector, and also eases the transition for students in URNWA schools who join
PA-run schools for secondary school.

Further strengthening of capacities is needed at many levels in order to build a

sustainable inclusive education system throughout the oPt. ECCE should continue to
be strengthened – as the foundation for lifelong learning -- particularly through the further
development of a national framework.46 The MoEHE should also move towards a more
inclusive educational approach to address the needs of children and youth excluded from
and marginalized within the education system. Improvements in the TVET and higher
education institutions will help to ensure that the education system to will meet the
demands of the labour market.47

Finally, further governmental response and capacities are needed within the current
context to address protection issues as they pertain to education throughout the
oPt. Monitoring mechanisms and interventions will need to be further strengthened and
developed in order to ensure the safety and well being of students, teachers and the
education system as a whole.48

The current political and institutional environment challenges the unity of the
education system which is however, still maintained through a common curriculum.
Lack of unity could widen gaps in the provision of educational services between
geographical areas. As referenced above in Section I and in past reports to the AHLC,
access to quality education is particularly undermined in those areas where the PA’s
control is limited – Area C, East Jerusalem and in Gaza.49 In Gaza, the MoEHE has faced
profound obstacles in the implementation of policies, which is due in part to the ongoing
blockade and internal political divisions.50

Culture

The promotion and protection of the richness and diversity of Palestinian culture
was identified as a national priority in the PA Programme of the Thirteenth
Government. The PA has demonstrated institutional commitment to support this area
through effective planning, promotion of standards and legislation and ongoing efforts to
manage the cultural resources in the oPt.

  22
 

Progress is being made in planning within the culture sector, towards the
formulation of a National Plan for Palestinian Culture based on the two recently
endorsed sector strategies for Culture and for Tourism and Heritage. This Plan will
encompass both cultural heritage – tangible and intangible -- as well as cultural
expressions. It will remain important for PA budgets to reflect the establishment of key
national cultural institutions, such as National Archives and a National Museum, envisaged
as priorities by the PA.
The PA has also been taking steps to ensure conformity of domestic standards and
legislation with international standards in the field of culture. The PA is in the process
of updating the existing draft cultural heritage law and preparing relevant by-laws. In the
field of cultural heritage protection, an Inventory of Cultural and Natural Heritage Sites of
Potential Outstanding Universal Value in Palestine was published in 2005 and the
establishment of the first National Inventory of Palestinian Intangible Cultural Heritage is
underway.

In January 2011, a nomination file to the World Heritage List of the Birthplace of Jesus:
Church of the Nativity and the Pilgrimage Route, Bethlehem was submitted by President
Abbas to UNESCO. The instruments of accession to four UNESCO conventions in the field
of culture were deposited.51

Finally, the PA has demonstrated its capacities and operational tools to promote and
protect culture. For example, there is a Palestinian Cultural Fund, managed by the
Ministry of Culture, for the preservation, development and promotion of Palestinian culture.
The Ministry of Tourism and Antiquities has also developed best practices in planning and
management of cultural heritage sites, aligned on international standards and guidelines.
For example, in January 2011, the Battir Cultural Landscape Protection programme was
awarded the Melina Mercouri International Prize for the Safeguarding and Management of
Cultural Landscapes. Management and conservation in areas where the PA does not have
administrative authority are constrained, as with the conservation of Palestinian dry-stone
terraces in the West Bank.

Further efforts to conserve, manage and protect the diversity of Palestinian culture
are important throughout the oPt, including in Gaza; this will be supported by further
institutional development and sufficient funding.

Health

The health care system in the oPt is well developed in areas under PA authority,
providing a full range of primary, secondary and tertiary services.52 Primary care and
emergency services are available to the whole population free of charge or for a nominal
fee while the national insurance scheme provides cover for a full range of services for most
of the population.53 There are, however, differences within the West Bank – due to the
PA’s limited control in areas under occupation – and between the West Bank and Gaza,
under the control of the de facto authorities.

The range, quality and availability of public health services in oPt and key health
indicators, such as infant mortality and life expectancy, bear comparison with those
in neighbouring states such as Egypt and Syria. Indeed, the UNDP Human
Development Index ranked the oPt 72nd out of 194 countries in 2010 (37th percentile), with

  23
 

regard to life expectancy at birth. This places the oPt ahead of Saudi Arabia, Jordan,
Algeria, Lebanon, Egypt, Iraq and Yemen.

The governance capacity of the Ministry of Health reflects important progress in

state-building. The MoH has sought to strengthen its institutional and governance
capacity, not least by further efforts to improve the planning process. In 2010, the MoH
published the National Health Strategy for 2011-13 which identified four key priority areas:
governance and institutional development; human resources development; healthy
behaviour; and access to quality health services. Further work is being undertaken on
action plans to address these.

The MoH has also developed policies and strategies in a number of important areas.
For example, a strategy for the prevention and control of non-communicable diseases
(NCDs) has been approved and the MoH is carrying out a survey to assess the level of risk
factors for NCDs while working on an implementation plan for integrating NCD interventions
at the primary care level. A national committee for health promotion has been reinvigorated
and is working on a national health promotion strategy. A cancer strategy has been
adopted and screening for breast cancer has been introduced. A working group on tobacco
control has been established which seeks to align existing anti smoking law with the
Framework Convention for Tobacco Control. A national strategy for Tuberculosis has been
developed as well as treatment guidelines and training modules. The formulation of a
national strategy for health information is under way and the first National Health Accounts
were produced.

The Palestinian health care system also faces many challenges. The continued
occupation impacts health throughout the West Bank restricting movement and access to
health services and negatively affecting the social determinants of health and the health of
the population. The Coordinator of Government Activities in the Territories cites an increase
of 1.3 percent in 2010 as compared to 2009 in the permits provided for medical patients
and those accompanying them to access health facilities in East Jerusalem and Israel from
the West Bank. In Gaza, the provision of adequate health services to the population
continues to be severely affected both by the Israeli closure and the lack of Palestinian
reconciliation. Up to one third of essential drugs and one fifth of medical supplies were out
of stock in Gaza in 2010. These drugs and disposables are considered necessary for the
provision of essential health care.

The health sector remains dependent on donor support – principally financial

support but also technical. Preliminary data from the (as yet unpublished) National
Health Accounts suggest that total health expenditure may be as high as 15 percent of
GNP, which is very high by international standards. This raises questions about the longer-
term affordability of the system and reinforces the case for renewed efforts to promote
greater efficiency. There is also a need to strengthen systems to improve and monitor the
quality of care. The MoH has begun to address this: quality improvement and patient
safety were the main themes of the annual national health conference 2010, a national
strategy for quality improvement has been developed, a focal point for quality has been
established at each of the district hospitals and an assessment of the quality provided in
primary care is ongoing.

Some of the core functions of the MoH also require continued strengthening. This
includes policy development and implementation, more effective regulation of the health
sector and stronger management and accountability. There is a need to reform the current

  24
 

policy and practice on human resource management and development, to introduce a

systematic review of existing staffing and to develop detailed workforce plans. It will be
important also to develop systems to manage financial and other resources to ensure
equity, sustainability and aid effectiveness. Monitoring indicators have been included into
the annual action plan and a system of monitoring and evaluation should also be
introduced. An ethics committee54 should also be established. Finally, there is room for
more meaningful participation in decision making particularly of non-state health providers
and the international community.

Social Protection

The PA’s 2011– 2013 National Policy Agenda and Programme of the Thirteenth
Government highlight social protection as a priority in its state-building agenda.55
Based on the Universal Declaration of Human Rights, the PA’s social protection policy
reflects the PA’s commitment to alleviating poverty and protecting vulnerable groups. With
the implementation of programmes, strategies and policies to support social protection, the
PA is increasingly in a position to strategically address the full range of issues which fall
under the social protection sector. This capacity has developed and taken credible form in
a relatively brief period, which adds to the perception of rapid and convincing progress in
the field of social protection -- including the development of necessary legislation and
provision of streamlined assistance.

Social protection is very important in the oPt, with an increasingly young and
growing population: 43.4 percent are below 15 years old and there is a high level of
dependency in the (5.9 individuals for each head of household). The Palestinian Central
Bureau of Statistics (PCBS) recognized that there is a substantial percentage of the
population living below the poverty line.56 Large families are most adversely affected and
particularly those in Gaza, East Jerusalem and Area C.

With a view to empowering the most vulnerable and building self-resilience, the PA
has progressively increased the national budget allocation for social services and
has created a comprehensive social safety net. This has been supported by key
donors, including the EU and World Bank. Policies have also been established to preserve
social fabric and provide social protection, thereby enhancing social cohesion. The PNP
outlines PA plans to build on this work to ensure that state prosperity is underpinned by
well-structured and efficient institutions and legislation that guarantee social justice,
equality and opportunity for all.

In 2010, the Ministry of Social Affairs (MoSA), in cooperation with a national team,
developed the comprehensive and well-structured Social Protection Sector Strategy
(SPSS) which was subsequently endorsed in early 2011.57 This strategy cuts across a
broad range of technical ministerial functions to ensure a common basis for action, and is
implemented independently by the respective ministries while ensuring complementarity in
addressing social protection issues.

Through six clearly defined outcomes, the SPSS places significant emphasis on the
importance of combating poverty, assisting marginalized groups, and empowering
vulnerable individuals and families. It targets the development of human capital with a
view to ensuring social integration and narrowing social disparities. It also promotes
stability, increasing the legitimacy of the government before its voters. It will be important
for gender concerns to be mainstreamed throughout the implementation of the strategy.

  25
 

The high level of inter-ministerial engagement, and the constructive interaction with
donors and UN agencies in finalizing the SPSS, reflects the PA’s capacity to grasp
the vast and inter-sectoral nature of the social protection portfolio.

To ensure effective and efficient social protection support is provided, MoSA has
developed a guidance document to support the transition of the Cash Transfer
Programme (CTP) towards better-targeted assistance. A by-law and accompanying
procedures’ manual will be developed for the CTP to be implemented from June 2011,
following the termination of the transition programmes. Furthermore, MoSA has been
working closely with UNRWA to improve the targeting of the refugee population for social
safety net transfers.

There have also been significant developments in the policy and legal framework to
ensure protection and promotion of rights. The Child Law, which addresses basic child
rights has been revised and endorsed by the Ministries of Social Affairs, Planning, Justice
and Labour, is now awaiting signature of the President, and action by the Palestinian
Legislative Council when possible. In addition, the Juvenile Justice Law is being developed.
The protection of women is high on the agenda as is evidenced in the recently endorsed
Strategic Plan for Combating Violence Against Women, and in the current momentum to
confirm honour killings as an illegal act. The PA has signed the Convention on the
Elimination of Discrimination Against Women in relation to women’s rights. A draft National
Health Law has been developed which will improve opportunities for the most vulnerable to
access health services. It will be important that the PLC is reactivated to ensure legislation
can be adopted.

Looking forward, revision of the methodology of poverty measurement with

cooperation between MoSA, PCBS and all stakeholders, will help provide a sound
basis for the equitable provision of social protection. Organisational development will
be important within MoSA, to help support this important sector, including through capacity
development and increased resources. Within the social protection sector, the PA remains
heavily dependent on external support. This presents continued challenges in terms of
coherence, coordination and, especially, the sustainability of any intervention.

Infrastructure & Water

Infrastructure provides the physical foundation for the state-building agenda. The
PA’s continued investment in physical works and institutional development signals
the institutional readiness to enable further growth and development.

Strategic planning for infrastructure development was embodied by two notable

documents: the PRDP 2007 – 2010, and the Gaza Recovery and Reconstruction Plan
(2009). The PRDP reflected a sound strategy to meet needs that sought to leverage
private sector investment. Such planning has led to key recent achievements in
infrastructure:
• 1,700km of water pipelines were installed and repaired;
• 88.2 percent of households have been connected to the public water supply;
• works continue for two wastewater treatment plants in Gaza;
• 99.9 percent of households have been connected to the public electricity network;

  26
 

• 2,250kms of roads were rehabilitated or newly constructed;

• a sanitary landfill was constructed in Jenin with a second project launched in
southern West Bank; and
• 44 new housing projects have been undertaken.

The PA has also focused on the sustainable management of natural resources and
protecting the environment. Further efforts towards sustainable use – such as reusing
wastewater from treatment plants under development in Gaza and in the West Bank – will
be key. Environmental protection laws, coupled with sufficient resources, and effective
enforcement, will be important.

Furthermore, the PA has invested in ensuring access to quality infrastructure by

regulating resource use, while promoting efficiency. For example, accountability for
payment for energy use has been promoted by pre-paid meters and the establishment of
independent regulatory bodies.

With regard to electricity, four new power stations are planned for the West Bank. All
necessary facilitation and financial support is important for the establishment of this
infrastructure to help alleviate shortages in electricity supply. As reflected in the PM
Netanyahu and QR Blair package of 4 February, the GoI agreed to conclude preliminary
discussion with the PA on the development of the offshore gas field, which will provide an
important energy source for both the Gaza Strip and the West Bank.

Housing is also being promoted, through ongoing works at seven housing project sites in
the West Bank, with more planned. In Gaza, the PA is supporting the work of the UN to
meet the immense housing needs.

As the PA pursues further progress in infrastructure development, it will be

important to continue to prioritize serving marginalized areas.

Water

The water situation in the oPt remains of central importance. The Palestinian Water
Authority’s (PWA’s) renewed investment in institutional development, policy
frameworks and planning reflect a commitment towards the sustainable use of
resources and fulfiling needs. Indeed, the PWA’s leading role in executing
comprehensive reform efforts while creating a planning framework and strategy reflects the
PWA’s important institutional development.

The PWA has committed to build on past inefficiencies in management of the sector.
Specifically, identifying a strategic vision and strategy for the sector – through a
consultative process – has helped to ensure that PA-wide priorities are identified.

Efforts are also underway to improve the PWA’s institutional and policy framework.
An ongoing evaluation (Institutional Water Sector Review) will help inform the future
restructuring of the water sector. This will be complemented by a re-evaluation of PA water
laws, regulations and legislation. Implementation of the findings will be supported by a
Technical Planning Advisory Team, which will support the PWA through a three year
capacity building programme.

  27
 

Meeting the needs in under-served areas remains a central objective as does the
development of strategic projects which will increase water availability. This includes
desalination plants in Gaza and wastewater reuse from the development of wastewater
treatment plants. Further measures are planned to reduce unaccounted for water,
including through enforcement against unauthorized water development.

Water resource management and water and sewage systems in the West Bank are
regulated by the Interim Agreement, Article #40, through the Israeli-Palestinian Joint
Water Committee (JWC). Effective coordinated management in these areas remains
important. The PWA has established a Joint Water Committee Unit to support monitoring
and follow up in the bilateral committee.

As evidence of the PA’s active role in regional engagement on water resource

management, the PA is currently leading the Environment and Water Team of the
Secretariat of the Union for the Mediterranean. Specifically, the PA is supporting the
Union to focus on innovative and strategic projects to promote effective resource use and
provide a degree of water security for all members. The platform is also important for
expanding public-private partnerships and engaging other regional bodies on resource
management.

  28
 

1
The six areas are: Governance, Rule of Law and Human Rights; Livelihoods and Productive Sectors; Education and Culture;
Health; Social Protection; and Infrastructure and Water.
2
‘Package of Measures Agreed by the Government of Israel and the Quartet Representative. 4 February 2011. See:
http://www.quartetrep.org/quartet/news-entry/package-of-measures-agreed-between-the-government-of-israel-and-the-
quartet/
3
The seventh of ten planned national security forces Special Battalions is currently completing training in Jordan and a
Presidential Guard Battalion began training in Jordan last month, both with international support. When all battalions are
deployed, there will be a fully equipped and trained security force, charged with maintaining law and order.
4
Remarks from the International day of Solidarity with the Palestinian people (29 November 2010), referenced also in Briefing
to the Security Council 14 December 2010.
5
As per the 4 February package agreed by PM Netanyahu and QR Blair.
6
During the reporting period Israeli security forces conducted a total of 1,851 search operations throughout the West Bank,
including East Jerusalem; there were five percent fewer operations over the reporting period, as compared to the previous
period.
7
There were five Palestinians killed and 324 injured in the previous five months. OCHA recorded 137 settler attacks against
Palestinians resulting in either Palestinian casualties (29 incidents, including incidents that resulted in two fatalities) or
property damage (108 incidents), compared with 122 of such incidents in the previous five months.
8
Israeli authorities have continued to announce new plans for settlement construction in East Jerusalem. This includes,
construction tenders for 238 housing units in the settlements of Ramot and Pizgat Zeev, 1,300 settlement units in Har Homa,
the approval of 130 new homes in the settlement of Gilo, and renewed construction for 13 settlement units in Sheikh Jarrah.
On 9 January, the Secretary-General issued a statement deploring the demolition of the Shepherd Hotel for the building of an
Israeli settlement in the heart of a Palestinian neighbourhood in East Jerusalem.
9
It is estimated that over 2,000 students and more than 250 teachers face delays at checkpoints as a result of permit checks
on their way to school. Regarding access to health: Palestinians who hold Jerusalem ID cards are entitled to the health
services provided by the Israeli authorities, which are recognized to be of a high standard, and can also access the six
Palestinian-run non-profit hospitals in the city. Residents of the remainder of the oPt also rely on these hospitals for routine,
specialised and emergency health services which are unavailable elsewhere in the West Bank and the Gaza Strip. The
efficient running of East Jerusalem hospitals is also impaired by restrictions on construction expansion, and the entry of
medical equipment and pharmaceuticals into East Jerusalem from the remainder of the West Bank.
10
See report by OCHA, East Jerusalem, Key Humanitarian Concerns, March 2011. It is only within the area zoned for
Palestinian areas construction that Palestinians can apply for building permits, but the number of permits granted per year to
Palestinians does not begin to meet the existing demand for housing and the requirements related to formal land registration
prevent many from applying. As a result, Palestinian residents of East Jerusalem find themselves confronting a serious
shortage in housing and other basic infrastructure. Many residents have been left with no choice other than to build structures
‘illegally’ and therefore risk demolition and displacement.
11
See report by OCHA, East Jerusalem, Key Humanitarian Concerns, March 2011. Education in East Jerusalem is divided
between numerous providers - municipal, private, ‘recognized unofficial’, Waqf and UNRWA. Despite the number of providers,
there is a chronic shortage of classrooms (in 2007/2008 there was a shortage of 1,000 classrooms) and existing facilities are
substandard or unsuitable. Pupils are often accommodated in rented houses which do not meet basic educational and health
standards. Consequently, parents have to resort to fee-paying alternatives although pupils are entitled to free education under
Israeli law. Many pupils are not enrolled in any educational institution. Among those enrolled, many fail to complete
secondary school, with an especially high drop-out rate of boys aged 12-14. Zoning and other planning restrictions in East
Jerusalem inhibit both new construction and the expansion of existing buildings. As a result, certain Waqf schools are
threatened by demolition and sealing orders. Preschool facilities are also inadequate in East Jerusalem.
The 2011 Education For All Global Monitoring Report highlights the challenges faced in East Jerusalem where it states that
many of the 90,000 school age children do not have access to free public education, even though they are entitled to such
under Israel’s Compulsory Education Law. Restriction of movement is another obstacle faced by the education system.
12
The Israeli Ministry of Justice asserts that, ‘all demolitions are conducted in accordance with due process guarantees and
following a fair hearing, which is subject to judicial review and the right to appeal and all demolitions are decided upon without
distinction on the basis of race or ethnic origin.’ The MoJ cites that in 2009, the Jerusalem municipal officials demolished 122
structures constructed without municipal permits both in the eastern and western neighborhoods of Jerusalem. 65 structures
were demolished in the eastern neighborhoods of Jerusalem and an additional 57 structures were demolished in the western
neighborhoods of Jerusalem.’ Israeli Ministry of Justice Department for International Agreements and International Litigation,
31 March 2011.
13
One of the worst affected areas has been Sheikh Jarrah neighbourhood in East Jerusalem; over 60 Palestinians have lost
their homes and another 500 remain at risk of forced eviction, dispossession and displacement.
14
The majority of Area C is under direct control of Israel (72 percent), whether as land earmarked for Israeli settlements
(declared as “State land”), closed military zones, military training zones, Barrier Buffer Zone, and nature reserves.
15
Needs at eight of the 26 schools in the Plan have been met, as a first step. Five filling points have received written
approval on 15 July 2010, but only two are fully operational, pending further approvals; one of four wells has been
implemented, the others are pending written approvals.
16
For further analysis, see OCHA report: Restricting Space: The Planning Regime Applied by Israel in Area C of the West
Bank. December 2009. 
17
Jordanian Planning Law no. 79/1966 and Israeli Military Order 418. This is compounded by difficulties in proving formal
land-owndership (in part because there has been no systematic land registration since 1967).
18
The recently agreed ‘fast tracking’ of permits for schools and clinics in the 4 February PM Netanyahu and QR Blair package
notwithstanding, detailed outlined plans are needed as a basis for the Israeli Civil Administration (ICA) to issue building
permits. The set of criteria for development of such plans, set forth by the ICA do not always reflect the spatial reality of most

  29
 

Palestinian communities in Area C. Military Order 418 also removed effective Palestinian participation from the panning
process (e.g. through the abolishment of the Local and District Planning Committees).
19
For example, plans in Area C submitted to the ICA by Palestinian communities, in line with their needs and respecting
established criteria, should be approved in a timely manner. Re-instatement of Palestinian local planning committees would
help to facilitate the issuing of building permits.
20
Israeli Ministry of Justice, 31 March 2011.
21
In addition to depriving the family of its home, their main source of physical security, demolitions undermine livelihoods,
resulting in increased poverty, reduced standards of living and limited access to basic services, One community, Khirbet Tana
(population 250) which is located in a closed Israeli military zone, suffered wide-scale demolitions in three separate incidents.
Because residents, who have lived in the area for decades, need grazing land for their livestock, most have no choice but to
stay in the area. As such, they have repeatedly re-built modest structures on the land, many with assistance from the
international community.
Maxwell Gaylard, United Nations Resident and Humanitarian Coordinator for the occupied Palestinian territory, released a
statement on further demolitions in Khirbet Tana, “if the authorities ultimately responsible for these demolitions could see the
devastating impact on vulnerable Palestinian communities, they might reflect upon the inhumanity of their actions." Mr.
Gaylard added that "under international law, Israel, as the occupying power in the oPt, is prohibited from destroying property
belonging to individuals or communities except when absolutely required by military operations”.
Water cisterns, basic infrastructure on which some of the most vulnerable communities rely, have been increasingly targeted.
The removal of such critical infrastructure places serious strains on the resilience and coping mechanisms of some of the
most vulnerable West Bank communities, who will become increasingly dependent on economically unsustainable sources
such as tankered water. In 2010, OCHA recorded the demolition of 27 water cisterns and other rainwater collection systems in
the West Bank; six have been demolished in 2011. Regarding continuing demolition of water cisterns in the West Bank the
United Nations Resident and Humanitarian Coordinator for the oPt Mr Maxwell Gaylard, said: “It is difficult to understand the
reasoning behind the destruction of basic rain water collection systems, some of them very old, which serve marginalized
rural and herder Palestinian communities where water is already scarce and where drought is an ever-present threat.” 1
February 2011.
22
Legal Consequences of the Construction of a Wall in the Occupied Palestinian Territory, Advisory Opinion, I. C. J. Reports
2004, p. 136. The International Court of Justice (ICJ) issued an advisory opinion including, inter alia, that the GoI should
cease construction of the wall inside the oPt and dismantle those parts of the Barrier in the oPt. For an overview of the
humanitarian impact of the Barrier, highlighting the role it plays in the system of access and movement restrictions, and
continuing fragmentation of the West Bank, including on urban areas, on the closed area communities isolated between the
Barrier and the Green Line, and on the rural communities which are primarily affected by the permit and gate regime see:
OCHA Report: Five Years after the International Court of Justice Advisory Opinion: A Summary of the Humanitarian Impact of
the Barrier. 2009. For Israeli High Court of Justice rulings related to consideration of the ICJ opinion and statements related
to the security justification, including as relates to the harm caused to the civilian population see:
http://elyon1.court.gov.il/vertictssearch/englishverdictssearch.aspx.
23
AIX Group. “Economic Development o f the Jordan Valley” March 2009. p. 47. A number of Israeli settlements in the
Jordan Valley rely on agricultural production; approximately 10,122 hectares of West Bank land outside the outer limits of the
settlement are cultivated.
24
There are currently 63 checkpoints, 35 of which are located along the Barrier and used to control access to Israel, East
Jerusalem or Barrier enclaves; 25 partial checkpoints; 171 earth mounds; 113 road gates; 69 roadblocks; 20 earth walls; 10
trenches; 46 road barriers. There are an additional eight checkpoints on the Green Line. In May 2010, an earthmound located
at the entrance of Ad Dahiriya town was removed, thus providing the 35,000 residents of the town with direct vehicular access
to Road 60. A road gate has been installed at the same site and has remained open. While this opening improves the
movement between towns and villages in the area, its impact on access of residents to Hebron city, the main economic and
service hub in the area, is still limited, as the main entrance to the city from the south remains blocked. An additional seven
roadblocks were removed in the Hebron area, including two located at the entrance of two communities (Wadi Al Hafayer and
Khirbet Bsim) and five leading to agricultural land.
25
Access to the Jordan Valley continues to be highly restricted: only residents of the area and people with special
coordination are allowed with their private vehicles through the checkpoints into this area. There was no improvement
regarding movement of Palestinians to and within the Israeli controlled area of Hebron City (H2), as well as regarding access
to East Jerusalem by permit holders.
26
PalTrade reports that 78,000 workers form the West Bank were employed in Israel and the Israeli settlements in the fourth
quarter of 2010 – an increase of four percent from the third quarter. Palestinian Economic Bulletin, Issue 54, March 2011.
27
The Israeli Coordinator of Government Activities in the Territories (CoGAT) reports that this has resulted in a 15 percent
increase in the number of people crossing through Allenby Bridge in both directions in 2010.
28
Tradable goods sectors made up only 15.4 percent of GDP in the third quarter of 2010.
29
A ship with weapons was intercepted 200 nautical miles from the Israeli coast; if the destination were to be confirmed as
militant groups in Gaza, this would constitute a violation of Security Council Resolution 1860 (2009). The ship, ‘Victoria’,
carried some 25 tonnes of weapons and ammunition.
30
See statement by the Humanitarian Coordinator: “I am very concerned about the recent forced closing of Sharek Youth
Forum in Gaza. Sharek is an important NGO partner of the United Nations in its work on behalf of children and the youth in
Gaza,” Mr. Gaylard said. Jerusalem, 7 December 2010.
31
GDP increased by 1.7 percent each quarter on average in 2009, -2.5 percent average in 2008, -2 percent average in 2007,
-5 percent average in 2006, this compares to 5.2 percent average in 2005.
32
As of January 2011, 39 percent of the most important raw materials were unavailable for industries, as compared to 49
percent in June 2010. Paltrade. ‘Research Study Tracking the Impact of Israeli ‘Easing Measures’ non the Industrial Sector in
Gaza’. p. 16.

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33
See OCHA Report: Easing the Blockade: Assessing the Humanitarian Impact on the Population of the Gaza Strip . March
2011. Before the closure of Gaza, both Israel and the West Bank constituted a large potential market for Gaza manufactured
products: 90 percent of garments, 76 percent of furniture products, and 20 percent of food products were marketed there.
34
See OCHA’s report: Easing the Blockade: Assessing the Humanitarian Impact on the Population of the Gaza Strip. March
2011. For example, thus far, only a small proportion of the 40,000 housing units needed in Gaza have been constructed. The
housing shortage has exacted a high ‘price’ from families confronted with poor and overcrowded housing conditions, with a
disproportionate impact on women and children. Regarding water, only 5 per cent to 10 per cent of Gaza’s aquifer is
considered fit for human consumption, with 83 per cent of the population relying on water from private vendors for drinking
and cooking. This is exacerbated by infiltration of untreated sewage due to lack of repairs and waste water infrastructure
development. In addition 50 million liters of partially or untreated sewage are being discharged into the Mediterranean every
day. Regarding education: UNRWA's overall reconstruction plan amounts to $661m, of which 11 percent has been
approved by the GoI for implementation. As a part of this plan, education infrastructure remains an area of critical need in
Gaza. UNRWA schools are currently severely overcrowded, due to a continuously growing student population. Some 95
percent of UNRWA schools function on a double shift basis while 40,000 refugee children are currently not enrolled in the
UNRWA education system due to overcrowding or lack of a facility near their residence. UNRWA estimates that 100 schools
will need to be built over the next three years to help accommodate all students. Towards meeting this need, UNRWA's
overall construction plan includes 40 schools over the first year. Towards this end, 49 schools have now been submitted for
GoI approval and 20 have received the necessary written approvals
35
See OCHA Report: Easing the Blockade: Assessing the Humanitarian Impact on the Population of the Gaza Strip. March
2011. 
36
The 13 percent of patients whose application were denied or delayed subsequently missed their hospital appointments. The
approval rate increased during the middle of 2010 but the trend has become more erratic in the last quarter and early 2011. In
2010 one out of five patients could not attend the hospital appointment outside of Gaza they were in need of. They were either
denied or delayed. Of particular concern are men between 18 and 40 years old - only every second young man received a
permit on time for his hospital appointment.
37
Around 6,000 Palestinians are held in 22 prisons and detention centers in Israel and the West Bank, of these 300 prisoners
are under the age of 18. Among the prisoners are also 37 women and some 10 members of the Palestinian Legislative
Council. Source: Concluding Statement of UN International Meeting on the Question of Palestine: The urgency of addressing
the plight of Palestinian political prisoners in Israeli prisons and detention facilities, held in Vienna on 7/8 March 2011.
38
There are 848,494 UNRWA registered refugees in the West Bank (representing 33 percent of the total West Bank
population). 21 percent of registered refugees live inside refugee camps. There are 1,167,361 registered refugees in Gaza
(representing approximately 75% of the population).
39
Refugees are characterized by chronically higher unemployment (25 percent as compared to 20 percent of the non-refugee
population) and a decline in labour force participation (refugees lost 6,700 jobs while non-refugees gained 41,600 jobs in the
first half of 2010; and the refugee average wage is 10 percent lower than non-refugee wage).
40
URNWA currently operates or sponsors over 900 installations. Because UNRWA services such as education and
healthcare are the type of services normally provided within the public sector, the Agency cooperates closely with
governmental authorities in the area of operations, who also provide some services to Palestine refugees.
41
The MoEHE has worked on developing the Palestinian Educational Law, Palestinian Higher Education Law and the
Palestinian Child Law.
42
Norway, Finland, Ireland and Germany-KFW signed the agreement. The JFA was also signed by the Prime Minister, the
Ministry of Planning and Administrative Development (MoPAD) and the Ministry of Finance (MoF).
43
Programmes include: teaching and learning material including educational technology; curricula improvement;
advancement of school health, counseling and student activities; implementation of a Teacher Education Strategy;
improvement of educational planning; and advancement of education management and administration
44
In partnership with the UN, the European Union, the World Bank and USAID. Teacher Education Reform initiated by the
MoEHE is a major achievement since it provides frameworks and standards for the implementation of the Teacher Education
Strategy. Through this reform, the low qualification levels of teachers was highlighted and will need to be addressed. For
instance, the MoEHE will need to look at further upgrading and improving teacher in-service programmes along with the
provision of ongoing professional development.
45
Notably the strategy focuses on issues such as access, school drop-out, TVET, low representation in some disciplines at
higher education levels, gender-based discrimination in school curricula and representation of female teachers at tertiary
levels.
46
According to the 2011 EFA Global Monitoring Report, the oPt registered declines in pre-primary gross enrolment rates from
1999 to 2008.
47
The 2011 EFA Global Monitoring Report provides further insight into the seriousness of responding to this need through its
observation that unemployed, educated youth figure prominently in some armed conflicts, including in the oPt.
48
This should include providing teachers with skills on how to support the psychosocial well-being of students while also
addressing the psychosocial needs of the teachers themselves.
49
For instance, inadequate education facilities and constraints to new-construction and rehabilitation in East Jerusalem and
Area C have affected access issues and contributed to higher drop-out rates, as in Section I.
50
Findings from Gaza also show that both teachers and student alike are functioning under immense strain which likewise
affects their abilities to learn.
51
The specific conventions include: the 1972 Convention concerning the Protection of the World Cultural and Natural
Heritage, the 2001 Convention on the Protection of the Underwater Cultural Heritage, the 2003 Convention for the
Safeguarding of the Intangible Cultural Heritage, and the 2005 Convention on the Protection and Promotion of the Diversity of
Cultural Expressions.
52
The system includes the option of being referred for specialty care if the relevant expertise is not available locally.

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53
The main providers are the Palestinian Ministry of Health (MoH), UNRWA, Palestinian NGOs and the private sector.
54
Whenever a research is being undertaken that involves e.g. taking blood samples from people, an ethical committee needs
to review and agree to the research proposal.
55
The PA’s state objectives are to ‘Develop an integrated, inclusive social safety net, which responds to the needs of
marginalized groups; reduce the poverty rate; create employment opportunities to minimize vulnerability and promote self-
sufficiency; and safeguard social safety of senior citizens, children, women and persons with special needs.’
56
PCBS has been working on improving the poverty estimates methodology which will likely have substantive implications on
the social protection sector,
57
PA Ministries of Planning, Health, Education and Higher Education, Islamic Wakaf and Finance, key local and international
partners, and others were involved in the SPSS.

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