Strategic Assessment

Responsibility for the economic difficulties of the Palestinian Authority (PA) is often assigned to Israel. The ongoing embargo on the Gaza Strip, the disruption of traffic through the border crossings, the obstacles that confront Palestinians working in Israel, and Israel’s failure to transfer what it collects for the Palestinian Authority to the PA are the main proof cited by various elements. However, a report released by the World Bank in February 2007 presents a more complex picture. It sheds light on the PA’s financial and administrative situation, and offers important insights about its socioeconomic reality.