{"id":197888,"date":"2013-03-19T00:00:00","date_gmt":"2019-03-12T17:29:54","guid":{"rendered":"https:\/\/www.un.org\/unispal\/?p=197888"},"modified":"2019-03-12T17:29:54","modified_gmt":"2019-03-12T17:29:54","slug":"auto-insert-197888","status":"publish","type":"document","link":"https:\/\/www.un.org\/unispal\/document\/auto-insert-197888\/","title":{"rendered":"Palestinian State-building progress – UNSCO report to the AHLC (March 2013)"},"content":{"rendered":"
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OFFICE OF THE UNITED NATIONS SPECIAL COORDINATOR<\/strong><\/p><\/div>\n FOR THE MIDDLE EAST PEACE PROCESS<\/strong><\/p><\/div>\n _______________<\/strong><\/p><\/div>\n <\/p>\n Report to the<\/strong><\/p><\/div>\n <\/p>\n Ad Hoc Liaison Committee<\/strong><\/p><\/div>\n <\/p>\n Brussels, 19 March 2013<\/strong><\/p><\/div>\n <\/p>\n \n <\/p>\n <\/p>\n \n <\/p>\n <\/p>\n \n<\/p><\/div>\n \n EXECUTIVE SUMMARY<\/strong><\/p><\/div>\n <\/p>\n As early as April 2011, the Ad Hoc Liaison Committee (AHLC), in its conclusions, welcomed the <\/strong><\/span>assessment of the World Bank, the International Monetary Fund and the United Nations (UN) that the Palestinian Authority (PA) was above the threshold for a functioning state in the key sectors they studied.<\/strong><\/span>1 <\/sup><\/span>In September 2011, the AHLC <\/span>reconfirmed that assessment of the state readiness of the PA. As the AHLC concluded, Palestinian state-building efforts stood out as a remarkable international success story.<\/span>2<\/sup><\/span><\/p><\/div>\n <\/p>\n However, already then, the UN expressed its concern that the political track, expected to converge with the state-building track, was hardly making any progress. <\/strong><\/span>As it became clear that the <\/span>institutional achievements of the Palestinian state-building agenda were approaching their limits within the political and physical space available, we <\/span>have been urging that <\/span>the state-building and political processes be brought into alignment.<\/span>3<\/sup><\/span> We have been warning that the state-building achievement is at risk and of the dramatic reality in which Palestinian state-building has matured in the West Bank but the political track has failed to converge.<\/span>4<\/sup><\/span><\/p><\/div>\n <\/p>\n And indeed, following this warning, the UN’s March 2012 report emphasised that the Palestinian state-building achievement was at <\/strong>increased <\/strong><\/i>risk <\/strong>and that the PA was facing ever greater political and financial pressure. The September 2012 report highlighted the growing risk to the viability of the two-state solution and the dangers associated with a slide towards a one-state reality.<\/p><\/div>\n <\/p>\n Since then, the gap has only widened between state-building progress and political deadlock. <\/strong><\/span>On 29 November 2012 the UN General Assembly accorded Palestine non-member observer State status in the United Nations, in what can also be read as an expression of the international community’s impatience with the impasse in the political process<\/span>. <\/span>While this development has raised expectations, the reality on the ground has only deteriorated and the Palestinian Authority now faces an acute crisis.<\/span><\/p><\/div>\n <\/p>\n This discrepancy between the two tracks can only be addressed by establishing a credible political horizon for the two-state solution. <\/strong><\/span>This is now more urgent than ever before. Both parties must respect their obligations under the roadmap, avoid actions that undermine trust and focus on positive efforts that can strengthen and improve the climate for a resumption of negotiations. This report both identifies the UN’s position on key issues that are central to the future of the State of Palestine<\/span>5<\/sup><\/span> and provides recommendations to the parties and the international community, focused on state-building, the security environment broadly, the West Bank (particularly Area C and East Jerusalem), and the Gaza Strip.<\/span><\/p><\/div>\n <\/p>\n Overall, the reporting period has seen a deterioration of the situation on the ground<\/strong><\/span>. The negative trends of illegal settlement activities, incursions and arrests in Area A and demolitions are particularly concerning and must be reversed. Strikes and protests, including over the unresolved issue of Palestinian prisoners, have widened and increasingly resulted in violence. Economic growth in both the West Bank and the Gaza Strip is slowing, while unemployment, already at very high levels, is on the rise, and high levels of poverty and food insecurity are contributing to humanitarian vulnerability in the oPt.<\/span>6<\/sup><\/span> Despite this, the state-building agenda has made further progress over the reporting period, but a range of challenges have begun to affect the achievements of this agenda.<\/span><\/p><\/div>\n <\/p>\n The PA has made much progress in the last years in improving its fiscal performance, yet its current fiscal situation is critical. <\/strong><\/span>Israel and the PA can take measures to ensure the PA’s medium2 term fiscal sustainability by developing the Palestinian economy and enabling the emergence of a sustainable, stable and growing tax base. Israel should roll back measures of occupation that cause structural distortions in the economy, contributing to chronic fiscal deficits. It can also enable private sector growth by easing Palestinian access to Area C. The PA must continue exercising fiscal discipline and take further measures to reduce expenditure, in particular on the wage bill, and increase revenue, as reflected in the draft budget for 2013.<\/span>7<\/sup><\/span> Any new austerity measures should give due consideration to avoiding wider negative economic or social consequences. It will be key that donors increase their support to cover the deficit projected at US$1.3-1.4 billion and help bridge the financing gap of US$0.4 billion for 2013.<\/span><\/p><\/div>\n <\/p>\n The PA’s fiscal stability also depends on the regular, timely and unhindered transfer of clearance revenue. <\/strong>Israel should refrain from withholding and\/or delaying the transfer of clearance revenue owed to the PA as well as from using it to offset Palestinian utility bills. Such disruptions in the transfer of clearance revenue, as observed in November and December 2012, and January and February 2013, contribute to fiscal crises that affect the civil service and PA suppliers, threaten the banking system, undermine business and consumer confidence, and diminish economic activity. Moreover, any deductions from the PA revenue should be transparent and based on agreement between the parties regarding amounts owed.<\/p><\/div>\n <\/p>\n Sustaining improvements in the security environment and the rule of law must remain a priority. <\/strong>In an increasingly challenging and charged environment, the PA Security Forces have continued to demonstrate the ability to maintain law and order in the areas currently under PA jurisdiction. It remains important that Israel refrain from measures perceived as undermining PASF, including military incursions into Area A, and enable the extension of PASF coverage in the West Bank.<\/p><\/div>\n <\/p>\n Area C is fundamental to the contiguity of the West Bank and the viability of Palestine and its economy<\/strong>. Interventions of scale are needed to help maintain and expand the Palestinian economy, including the development of vital sectors in Area C. The Government of Israel is encouraged to build on progress made in the implementation of the two packages of social infrastructure works in Area C and make the procedures and timelines of 4-6 months for the issuance of permits for infrastructure and development projects more widely available to interested international community and Palestinian actors. The cooperation of the Government of Israel is required to facilitate and expedite planning for Palestinian communities in Area C that addresses their basic developmental needs. <\/p><\/div>\n <\/p>\n While the status of Jerusalem remains a final status issue to be resolved through negotiations between the parties, a number of steps have the potential to significantly improve the lives of Palestinians living in East Jerusalem. <\/strong>Proactive Israeli engagement is essential to advance community-based plans that address outstanding developmental needs and the formalisation of homes built without Israeli-issued permits, thus ending demolitions of Palestinian homes and property and related displacement. Positive steps could include the reopening of Palestinian institutions in East Jerusalem, starting with the Chamber of Commerce to revive economic activity, better protecting residency rights of East Jerusalemites, expanding and constructing new schools along with the seamless access for teachers residing in other parts of the West Bank to offset a shortage in teaching faculty, and allowing the East Jerusalem Hospitals Network to procure lower cost pharmaceuticals produced or imported from the rest of the West Bank.<\/p><\/div>\n <\/p>\n The UN’s objective in the Gaza Strip remains the full implementation of Security Council Resolution 1860, including an end to the closure.<\/strong><\/span>8<\/sup><\/span> After the November hostilities in the Gaza Strip and southern Israel, a calm has prevailed since the ceasefire was reached on 21 November, following which Israel has taken some welcome steps to ease restrictions. However, much more is needed to address urgent humanitarian recovery and reconstruction needs, develop infrastructure and services, and revitalize the Gazan economy. The agenda of lifting the closure must be further advanced. Negotiations must proceed to solidify the ceasefire and parallel efforts must continue to enforce the calm and prevent the smuggling of weapons into the Gaza Strip. The UN welcomes the extension by Israel of the fishing limit from three to six nautical miles off the coast, but a further extension to at least nine nautical miles is necessary for a significant increase in the size and value of the catch of Gazan fishermen. The lifting of restrictions on trade, including transfers to and from the West Bank and imports and exports to Israel and other countries would benefit consumers and producers in the Gaza Strip and help restore private sector competitiveness. Removing aggregate, iron bar and cement from the Israeli list of dual-use materials and allowing their import from Israel would facilitate the construction and reconstruction of housing and essential infrastructure in the Gaza Strip, with the support of international organisations, but more importantly by the legitimate private sector. Infrastructure needs must be addressed and basic service delivery must be improved for the Gaza Strip to be a liveable place, and the United Nations continues to support urgent reconstruction and recovery needs there. With Israel’s cooperation in granting important approvals including a new set of approvals at the beginning of March, the UN has now received approval for more than US$400 million worth of construction projects in the Gaza Strip.<\/span><\/p><\/div>\n <\/p>\n \n INTRODUCTION<\/strong><\/p><\/div>\n <\/p>\n 1. This report focuses on a number of specific issues on which the UN, together with the parties and the international community, will continue to work to realise progress. These do not supplant the full spectrum of recommendations presented in previous reports, many of which remain as valid today as they were when originally published.<\/p><\/div>\n <\/p>\n 2. This report opens with a section providing political context. It then gives an overview of developments in Palestinian state-building during the reporting period, highlighting challenges and achievements, before reviewing the situation on the ground in the West Bank, where movement and access aspects, Area C, and East Jerusalem are addressed, and the situation in Gaza.<\/p><\/div>\n <\/p>\n I. POLITICAL CONTEXT<\/strong><\/p><\/div>\n <\/p>\n 3. The UN’s September 2012 report to the AHLC concluded that: ‘In a rapidly changing region, the vision of the two state solution and the achievements of the Palestinian Authority are elements of stability and progress that should not be lost but rather maintained and realised in full without further delay. Real progress can only be achieved through a meaningful peace process. But regardless of the pace of progress on the political track, building upon and deepening state-building gains remains vital. Progress in achieving sustainable development throughout the occupied Palestinian territory (oPt) benefits Palestinians and helps create conditions in which a final status agreement can take root.’<\/p><\/div>\n <\/p>\n 4. The fundamental constraint on the development of Palestine, including state-building, results from the occupation and the lack of progress on the political track. This is further compounded by the Palestinian political divide. The parties and the international community must rededicate themselves to identifying a clear path forward, and clear, agreed measures that can be undertaken now. But it is also for the parties to remain open to new initiatives and demonstrate seriousness.<\/p><\/div>\n <\/p>\n 5. In its resolution 67\/19 adopted on 29 November 2012 the General Assembly accorded Palestine non-member observer State status in the United Nations, without prejudice to the acquired rights, privileges and role of the Palestine Liberation Organization as the representative of the Palestinian people. The General Assembly also affirmed its determination to contribute to the attainment of a peaceful settlement in the Middle East that ends the occupation that began in 1967 and fulfils the vision of two States: an independent, sovereign, democratic, contiguous and viable Palestine, living side by side in peace and security with Israel on the basis of the pre-1967 borders. It expressed the urgent need for the resumption and acceleration of negotiations within the Middle East peace process, and urged all States and the specialised agencies and organisations of the United Nations system to continue to support and assist the Palestinian people in the early realisation of their right to self–determination, independence and freedom. Following the adoption of the resolution the Secretary-General reiterated his position that the Palestinians have a legitimate right to their own independent State and that Israel has the right to live in peace and security with its neighbours. In appealing to all concerned to act responsibly, the Secretary-General also stressed that there is no substitute for negotiations to that end and the vote underscored the urgency of a resumption of meaningful talks.<\/p><\/div>\n <\/p>\n 6. With regards to reconciliation, Egypt continues to facilitate the implementation of previous agreements and a meeting between President Abbas and Khaled Meshaal took place on 10 January 2013 in Cairo. Elections are a central element of reconciliation and the Central Election Commission undertook a voter registration process in February 2013 in the West Bank and the Gaza Strip. The United Nations continues to support efforts to promote reconciliation through Egyptian auspices, under the leadership of President Abbas, and within the framework of the commitments of the Palestine Liberation Organization, the positions of the Quartet, and the Arab Peace Initiative. Palestinian reconciliation and negotiations can no longer be viewed as an either-or proposition, but are essential for achieving the two-state solution and must be made compatible by advancing both in a mutually reinforcing way.<\/span>9<\/sup><\/span><\/p><\/div>\n <\/p>\n 7. Every day we are confronted by actions that take us further away from our agreed goal of a two-state solution. Another year has passed without a credible political horizon. We must start to witness this year a reversal of negative trends and substantial progress in establishing a credible political horizon for the two-state solution.<\/p><\/div>\n <\/p>\n II. PALESTINIAN STATE-BUILDING<\/strong><\/p><\/div>\n <\/p>\n 8. The reporting period has seen further progress in the effort to build Palestinian institutions. The conclusion of the PA's <\/span>Programme of the 13th Government <\/i><\/span>has not meant an end to Palestinian progress in building institutions, nor to the UN’s support to that endeavour nor the UN’s commitment of support to it.<\/span>10<\/sup><\/span><\/p><\/div>\n <\/p>\n 9. While state-building has continued over the reporting period, a range of challenges – which will be examined further below – have begun to affect the progress that has been made. It will be essential not only that the erosion be stayed, but that far reaching progress be made in addressing the fundamental issues which continue to constrain Palestinian state-building. This will be particularly important both to ensure the survival of the PA, but also to create an enabling environment within which the economic potential of the oPt can be realised.<\/p><\/div>\n <\/p>\n 10. The overall trend in the oPt has, however, been disappointingly negative; the fundamental rolling back of the occupation, which is the essential complement to the state-building agenda, has not been realised. Section III of this report reviews the situation on the ground in greater detail, particularly in those geographic areas where the Palestinian Authority faces the greatest challenge in extending its authority: Area C and East Jerusalem in the West Bank, and the Gaza Strip.<\/p><\/div>\n <\/p>\n 11. The reporting period has seen some progress on the state-building agenda. A number of illustrative examples of this progress are outlined below:<\/p><\/div>\n <\/p>\n a) In an increasingly challenging and charged environment, the PA Security Forces (PASF) in the West Bank have continued to demonstrate the ability to maintain law and order in the areas currently under their jurisdiction. The total number of PASF personnel deployed throughout the West Bank remains at over 4,500. Continued reform of the security sector remains essential and should be accelerated. The UN and other partners continue to work with the PASF to enhance its performance on human rights issues, including use of excessive force and restrictions on freedom of expression. Although the Office of the High Commissioner for Human Rights has documented the use of arbitrary detention and ill treatment in law enforcement activities, data reveal a downward trend over time. Finally, it remains important that Israel refrain from measures perceived as undermining PASF, including military incursions into Area A, and enable the extension of PASF coverage in the West Bank.<\/p><\/div>\n <\/p>\n b) In a further step in enhancing the management of public services, the Palestinian Government succeeded in crafting an agreement with multiple stakeholders that is expected to lead to a substantial improvement in the collection of electricity dues, including in refugee camps. The arrangement, which involves the wide-scale installation of prepaid meters, will also help incrementally collect a large part of older frozen dues and help stabilise and ensure the sustainable functioning of this vital sector. A similar arrangement is currently being explored for adoption in the Gaza Strip.<\/p><\/div>\n <\/p>\n c) Over the past three years, the UN has supported the Palestinian Authority in strengthening its policies, laws, knowledge, monitoring and training in the area of gender equality. These advances include, inter alia<\/i>, several studies such as a survey on violence against women in both the West Bank and the Gaza Strip, a national strategy to combat violence against women, specialized training material for judges, lawyers, government officials and teachers on how to deal with incidents of genderbased violence, and the creation of a national committee on women's employment.<\/p><\/div>\n <\/p>\n d) The PA’s commitment towards greater government efficiency and public oversight through e-government is evidenced in the establishment of the General Personnel Council’s e-portal, which is expected to modernise the way the PA handles information on the civil service and is the first phase of the Human Resource Management Information System. The purpose of the information system is to enhance the capacities of the Palestinian Authority to efficiently organise, further integrate and transparently communicate information that will service all PA ministries; make public information available to civil servants and citizens alike; and ultimately to lead to the improved provision of services to the Palestinian people. <\/p><\/div>\n <\/p>\n e) An Economic Forecasting Unit has been established at the Palestinian Central Bureau of Statistics, in collaboration with the Ministry of Finance, that allows the PA to carry out econometric modelling, assess the outcome of different economic policy options, and project key economic variables. The PA is now able to produce reliable, timely, official Palestinian economic forecasts that are used by PA ministries, the private sector and other organisations, and are essential for economic planning by both the government and the private sector.<\/p><\/div>\n <\/p>\n f) In an important achievement for the Palestinian banking sector, the Palestinian Monetary Authority (PMA), which oversees and regulates banks and other financial institutions in both the West Bank and the Gaza Strip, was granted membership in the International Association of Deposit Insurers in December 2012. In that same month the Council of Ministers approved the legal framework for the Palestinian Association of Deposit Insurance, in line with international best practices, to be signed soon by President Mahmoud Abbas, and expected to insure over 92% of all deposits in the Palestinian banking system.<\/span>11<\/sup><\/span> These important developments towards further institutional maturity are expected to increase trust in the banking system and lead to higher deposits, promote investment, and enhance the role of the banking system in the Palestinian economy in general<\/span>.<\/strong><\/span><\/p><\/div>\n <\/p>\n g) The PA’s growing ability to develop and implement national development plans and strategies is evidenced in the National Development Plans of 2008-2010 and 2011-2013, and the related sectoral strategies, as well as the ongoing consultative process to develop the next plan for 2014-2016. Since 2012 the UN has been working closely with the PA on the elaboration of the UN Development Assistance Framework (UNDAF) for the oPt, a strategic planning framework intended to guide all UN agency-specific development programming in the period 2014-2016 in alignment with the upcoming National Development Plan. The completion of the first-ever UNDAF for the oPt evidences the UN’s continued confidence in the PA.<\/p><\/div>\n <\/p>\n h) The PA, together with Palestinian civil society, the Independent Commission for Human Rights and UN partners recently embarked on the process to prepare the Palestinian National Action Plan for Human Rights, one of the first such plans in the Arab region, to be incorporated into the forthcoming Palestinian National Development Plan 2014-2016. This represents a unique opportunity for the relevant Palestinian ministries and departments to mainstream human rights throughout development efforts and to show a concrete and measurable commitment of the PA to international human rights principles.<\/p><\/div>\n <\/p>\n 12. The PA’s fiscal situation is critical. Chronic fiscal deficits are partially a result of structural distortions in the economy that are directly linked to the occupation. The PA’s mediumterm fiscal sustainability requires the development of the economy and the emergence of a sustainable, stable and growing tax base, which in turn depends on private sector growth. In the last years, the PA has implemented a number of measures to create an enabling environment for investment and private sector activity. However, as recently highlighted by the IMF, “a key prerequisite for the expansion of private sector activity and employment is the removal of the restrictions on movement and access”.<\/span>12<\/sup><\/span> Fundamental change that allows for economic development – for example through access to Area C – is now essential.<\/span><\/p><\/div>\n <\/p>\n 13. To achieve medium-term sustainability, the PA, in turn, must exercise fiscal discipline and take further measures to reduce expenditure and increase revenue, taking into consideration the weakening real economy and trying to ensure that any new austerity measures do not have wider negative economic or social consequences. Continued donor support is essential to allow the PA to tighten fiscal policy in a manner that is not too drastic and is not introduced too fast and so does not harm the private sector or essential social spending. The PA’s on-going efforts to strengthen its fiscal position have led to increased revenue collection over time, significantly reduced net lending (although the positive trend was reversed in 2012), restraint of wages and hiring. In the 2013 budget the PA will need to continue to exercise fiscal restraint. The electricity reforms (already examined in paragraph 12 above) represent a positive step in addressing net lending and streamlining services.<\/p><\/div>\n <\/p>\n 14. Declining donor aid (US$0.8 billion in 2012, down from around US$1.8 billion in 2008) has been insufficient to cover the deficit in the past years.<\/span>13<\/sup><\/span> As a consequence of this gap, the PA has accumulated considerable debts to the banking sector and arrears to the private sector, the pension fund, and even its own employees in the form of unpaid wages.<\/span>14<\/sup><\/span> As financing options for the PA in the banking and private sectors are reduced, wage payments and service provision are likely to experience further disruptions, risking fuelling social unrest, as observed in recent months.<\/span>15<\/sup><\/span> In the short term, the PA will depend on donor aid to cover its recurrent deficit, projected at US$1.3-1.4 billion for 2013. A significant increase in aid from 2012 would be necessary to help cover the financing gap of around US$0.4 billion 2013. The European Union’s decision to bring forward €60 million of its assistance planned for 2013 will help the PA cover its recurrent costs but only during the first quarter of the year. The EU and the Netherlands have also contributed €20.8 million toward the payment of salaries and the pension fund this year. Countries of the Arab League last year pledged to provide US$100 million a month to the PA as a “safety net” to cope with the financial crisis. This would go a long way in helping the PA cover its recurrent costs and these countries are therefore encouraged to activate said safety net. Thus far this year only Saudi Arabia has contributed one payment of US$100 million to the PA’s budget.<\/span><\/p><\/div>\n <\/p>\n 15. There is also a need to review revenue sharing practices. In particular, exit fees paid by Palestinian passengers to the Israeli authorities at the Allenby Bridge should be equally shared between the two sides, as agreed in the Paris Protocol.<\/p><\/div>\n <\/p>\n 16. The PA’s fiscal situation is exacerbated by the periodic withholding and\/or delay in the transfer of clearance revenue by Israel, as observed in November and December 2012 and January 2013, and by its use to offset Palestinian utility bills. Israel’s withholding\/use of Palestinian clearance revenue and delays in transfers exacerbate the environment of economic uncertainty, hinder the PA’s ability to implement its budget responsibly and meet its obligations, affect the confidence of businesses and consumers, and put pressure on the banking system and the economy as a whole.<\/span>16<\/sup><\/span> The regular, timely and unhindered transfer of clearance revenue has to be ensured to avoid fiscal crises that in turn affect the sizable civil service and PA suppliers alike, threaten the banking system and diminish business and consumer confidence, resulting in diminished economic activity. Furthermore, any deductions from the PA’s clearance revenue should be transparent and based on agreement between the parties regarding amounts owed.<\/span><\/p><\/div>\n <\/p>\n 17. The formulation of a comprehensive National Spatial Plan is necessary to achieve balanced regional development across the entire occupied Palestinian territory but particularly so in the Gaza Strip, considering the many pressing challenges there.<\/span>17<\/sup><\/span> A National Spatial Plan, along with national sector strategies and benchmarks will also be essential to inform community level planning and facilitate economic development across the oPt.<\/span><\/p><\/div>\n <\/p>\n III. SITUATION ON THE GROUND<\/strong><\/p><\/div>\n <\/p>\n 18. Official annual GDP data for 2012 have not been released yet, but there are indications that economic growth in both the West Bank and the Gaza Strip is slowing down.<\/span>18<\/sup><\/span> This is particularly worrying in the case of the West Bank as it (excluding East Jerusalem) contributes approximately 75% of total GDP, making the West Bank the engine of the oPt economy and a main source of revenue for the PA. Furthermore, as estimated by the IMF, simply to absorb new labour market entrants, GDP in the oPt needs to grow at least by 4.5% per year.<\/span>19<\/sup><\/span> In this context, unemployment increased to 19% in 2012 from 17% in 2011 in the West Bank and to 31% in 2012 from 29% in 2011 in the Gaza Strip, despite low labour force participation rates of only 46% and 40% in 2012, respectively. Women and young people are particularly affected by the lack of jobs.<\/span>20<\/sup><\/span> Related to this absence of economic opportunities, poverty continues to affect large proportions of the population. A number of factors are also putting pressure on food security in the oPt. The positive trends in the reduction in food insecurity seen in 2009-2011 are expected to slow down or be reversed due to the economic slowdown and the PA’s fiscal crisis, which may lead to further cuts in essential social spending.<\/span>21<\/sup><\/span> At the same time, the prices of fresh food in local markets have reached record levels, making economic access to nutritious food difficult for many Palestinian families. To promote an inclusive, equitable society, the PA is encouraged to ensure that the benefits of any growth provide improved economic security on an equal basis for all Palestinians.<\/span><\/p><\/div>\n <\/p>\n 19. Given the limited size and purchasing power of the local market, exports of goods and services are key to expanding the oPt’s productive base, generating employment and thus reducing poverty. The oPt’s share of exports in GDP is very low, and the West Bank has traditionally accounted for most oPt exports, reaching 94% of the total in 2011.<\/span>22<\/sup><\/span> One vulnerable aspect of Palestinian exports is the lack of market diversification, with Israel absorbing most oPt exports. The installation of container scanners at the Allenby Bridge Crossing and the Kerem Shalom Crossing is expected to lead to an increase in the flow of goods from the West Bank and the Gaza Strip and to help diversify export markets.<\/span>23<\/sup><\/span> The scanners, procured with funding from the Netherlands will provide the capacity to scan containerised shipments, allowing for a more effective and rapid inspection of goods. The main benefit for shippers will be a reduction in the costs associated with transferring goods through the crossings (including transportation, packaging and processing costs), which, in the case of exporters, will translate into increased competitiveness in markets abroad.<\/span><\/p><\/div>\n <\/p>\n 20. The international community has played an important role in complementing the work of the PA, filling a gap in meeting the needs of the most vulnerable through strategies such as the Consolidated Appeal (CAP). The 2013 CAP for the oPt was launched in January 2013 and requests US$401.6 million under the areas of (in descending value in US$) Food, Cash-for-Work, Protection, Agriculture, Health and Nutrition, Education, Coordination and Support Services, and Water, Sanitation and Hygiene. The Food Sector alone requests US$160.8 million (40% of total requirements) although the Cash-for-Work and Agriculture Sectors are also largely focused on addressing food insecurity. The reduction in the level of the CAP in 2013 does not reflect a reduction in humanitarian need in the oPt, but rather a continued attempt to focus on the most urgent humanitarian needs.<\/p><\/div>\n <\/p>\n III.1 West Bank<\/strong><\/p><\/div>\n <\/p>\n West Bank – Overview<\/strong><\/p><\/div>\n <\/p>\n 21. In the West Bank, Israeli security forces, citing security concerns, conducted 1,660 operations and 1,991 arrests between 17 September 2012 and 25 February 2013. A total of nine Palestinians were killed and 1910 were injured by Israeli forces during this period, many in relation to popular demonstrations in solidarity with prisoners on hunger strike which resulted in clashes with Israeli security forces. In a concerning development, on 23 February 2013, a Palestinian man, Arafat Jaradat, died in detention after his arrest by the Israeli Defence Forces days earlier in the West Bank. His death sparked a series of popular demonstrations and clashes which resulted in more than 40 Palestinian injuries by the Israel Defence Forces in the West Bank. Confrontations between Palestinians and Israeli settlers have occurred on an almost daily basis. Occupation measures have continued to impede Palestinian movement, while demolitions in Area C have intensified, leading to further displacements.<\/p><\/div>\n <\/p>\n 22. There was an alarming rate of settlement activity during the reporting period, with a particularly large number of announcements of new housing units in the aftermath of the General Assembly vote to accord Palestine the status of non-member observer State in the UN. On 30 November 2012, the day after General Assembly vote, the Israeli government announced the construction of 3,000 new settlement housing units in the West Bank, including in East Jerusalem. Of significant concern, the Israeli authorities indicated that planning will proceed on several thousand housing units in the strategic area E1 between Jerusalem and the settlement of Maale Adumim. The Secretary-General has expressed his grave concern and disappointment over these announcements. In addition, the Israeli Government decided to expedite the construction of some 6,500 housing units in settlements in East Jerusalem which have already been approved, including in Givat Hamatos. This was followed in mid-December by preliminary approval to build 1,500 housing units in the East Jerusalem settlement of Ramat Shlomo. In February 2013, 90 new housing units received final approval to be built in the West Bank settlement of Bet El (near Ramallah).<\/span>24<\/sup><\/span><\/p><\/div>\n <\/p>\n 23. In response to the E1 announcement, on 11 January 2013 over 100 Palestinian and international activists moved to the E1 area and established an encampment named Bab al-Shams aimed at countering the Israeli settlement expansion plans. Demonstrators were evicted two days later. Another encampment named Bab al-Karamah was set up a week later in the Palestinian village of Beit Iksa to impede the construction of the Barrier, which deviates from the Green Line. The Secretary-General stresses the importance for protests to continue to remain peaceful and for the right to peaceful protest to be fully respected.<\/p><\/div>\n <\/p>\n 24. Israeli settler violence remains worrying as it undermines the physical security and livelihoods of Palestinians and risks increasing friction. Violence by settlers in the West Bank includes physical assault, harassment, takeover of and damage to private property, obstructed access to grazing\/agricultural land and water resources, and attacks on livestock, agricultural land and holy places. More than 160 settler-related incidents resulting in Palestinian injuries or damage to Palestinian property were recorded during the reporting period, resulting in the injury of more than 80 persons, including children. Under international humanitarian law and international human rights law, Israel is obligated to prevent attacks against Palestinian civilians or their property and ensure that all incidents of settler violence are investigated in a thorough, impartial and independent manner.<\/p><\/div>\n <\/p>\n 25. There were incidents in which Israeli settlers were affected by violence since the last report. Between 17 September 2012 and mid-February 2013, 16 incidents leading to 25 settler injuries by Palestinians and two incidents leading to property damage were reported.<\/p><\/div>\n <\/p>\n 26. Between September 2012 and January 2013 the Israeli authorities demolished close to 300 residential and livelihoods related structures in the West Bank, including 37 in East Jerusalem, on the grounds that they lacked Israeli-issued building permits.<\/span>25 26<\/sup><\/span> Approximately 500 persons, many of them children, were displaced as a result. We remain concerned about demolitions, which spiked in January 2013, and their impact on already vulnerable populations.<\/span><\/p><\/div>\n <\/p>\n 27. In addition, humanitarian actors, including both NGOs and UN agencies, face constraints in delivering emergency assistance to displaced families and communities. For example, on 19 January 2013 Israeli authorities demolished and confiscated 32 emergency shelters from displaced families in the northern Jordan Valley, who had been displaced by a demolition a few days earlier.<\/span>27<\/sup><\/span> Such practices run counter to international law, which requires all parties, including Israel, to allow, facilitate and protect the rapid and unimpeded passage of humanitarian assistance, if unable or unwilling to provide such assistance themselves.<\/span><\/p><\/div>\n <\/p>\n West Bank – Movement and Access<\/strong><\/p><\/div>\n <\/p>\n 28. Barrier construction has continued, albeit at a reduced scale from recent years, despite the advisory opinion of July 2004 of the International Court of Justice, which established that the sections of the Barrier which run inside the West Bank, including East Jerusalem, violate Israel’s obligations under international law.<\/span>28<\/sup><\/span> Approximately 62% of the Barrier is now complete, a further 8% is under construction and 30% is planned but not yet constructed. In December 2012, plans to build the Barrier around the Bethlehem village of Battir were delayed following a provisional ruling by the Israeli High Court of Justice which urged a re-examination of part of the route, following objections by villagers and by Israeli environmental groups who claimed that the planned route would damage historic terraces and traditional farming practices.<\/span><\/p><\/div>\n
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