Abbas tries to stave off political crisis in PA
Although posted before Hamdallah gave any inkling he might resign, this piece by Alaa Tartir usefully and uniquely lays out the impossible difficulties of governing Palestine within the framework of the 1993 Oslo accords. It is followed by pieces on Hamdallah’s resignation from Ha’aretz (2), Ahram online (3) and Ma’an news (4).
Caption when posted: There is no doubt that Hamdallah’s government will be under the thumb of Abbas. Photo by Issam Rimawi / APA images.
Why PA’s new prime minister heads a papier-mâché government
By Alaa Tartir, Electronic Intifada
June 19, 2013
“Welcome to my new page and I wish I will be able to rescue you from the abyss.” This was the first Facebook post of Dr. Rami Hamdallah, appointed as prime minister of the Ramallah-based Palestinian Authority by its leader, Mahmoud Abbas, earlier this month.
Hamdallah is to head an ostensibly transitional government that will expire in September.
An academic and president of An-Najah University in Nablus, Hamdallah signaled that he understood the need to be in touch with the people, even virtually, in order to build his local legitimacy.
By turning to social media he was following the example of his predecessor Salam Fayyad.
But Hamdallah also seemed to be admitting that, despite the glowing reports of a flourishing West Bank economy as a result of Fayyad’s much vaunted “state-building” efforts, Palestinians are, in fact, still living in an abyss.
There have been 14 Palestinian Authority governments in Ramallah, including that of the internationally-celebrated Fayyad who held the prime minister post for six years. All of these governments not only failed to pull Palestinians out of the abyss, but have arguably only made life even worse.
Hamdallah would have to be a miracle worker to do any better, and in only three months.
Impossible to rescue?
These persistent failures suggest that it is the existing framework, rather than the individuals concerned, that make it impossible for the “Palestinian leadership” to rescue itself, let alone the Palestinian people. And this context is, of course, the 1993 Oslo accords and the accompanying economic agreements. It is safe to conclude, after two decades, that these agreements will not permit any Palestinian leadership to fulfill the aspirations and demands of and pursue the rights of the Palestinian people.
The appointment of Hamdallah must also be understood within this landscape in order to tamp down the sort of wishful thinking and lofty expectations that were attached to Fayyad.
So given these constraints, what is the significance of Hamdallah’s appointment and what implications will it have for the system of Palestinian governance? What will change and what will remain the same? Will it have any impact on the internal Palestinian division between the internationally-supported Fatah-ruled PA in Ramallah, and the Hamas-run wing isolated in the Gaza Strip? And what, if anything, can this new PA government offer the Palestinian people?
No surprise
Hamdallah’s appointment did not surprise seasoned observers, given the long-standing and increasingly desperate wish of the PA leadership, particularly the Fatah central committee, to get rid of Fayyad.
Hamdallah’s nomination and appointment was supported by many of Abbas’ political advisors and economic elites such as the tycoon Munib Masri, who was the Palestinian godfather of the recent Dead Sea “economic peace” initiative in May.
What was new was the appointment of two deputy prime ministers: one, Ziad Abu Amr, a pragmatic liberal Gazan, for political affairs; and the other, Muhammad Mustafa, a clone of Salam Fayyad, for economic affairs. Abu Amr is respected by and has good relations with Hamas, and served as the foreign minister in the short-lived unity government in 2007.
Mustafa is the chief executive officer of the Palestine Investment Fund (PIF), the PA-owned body that supposedly manages the Palestinian people’s wealth.
Mustafa, it would appear, is the Palestinian counterpart for the $4 billion “development plan” for the Palestinian economy announced by US Secretary of State John Kerry at the World Economic Forum in Jordan last month.
Mustafa is also economic advisor to Mahmoud Abbas. Shukri Bishara, an advisor to Mustafa at the PIF, has now been named a finance minister.
Elite domination
These appointments underscore that the PA remains dominated by the same small elite who cut across the political and economic spheres, with all the implications this has for fostering cronyism, corruption, self-dealing and authoritarianism.
Yet, as political analyst Hani Masri has observed, the creation of what seem to be empowered deputy prime ministers may indicate an effort to diffuse power away from the prime minister’s office and return to a system where the PA president is the only holder of power, in the style of the late Yasser Arafat. This is undoubtedly an effort by Abbas to consolidate his control.
The irony here is that the position of prime minister was created for Abbas in 2003 with the backing of George W. Bush’s administration and other foreign powers, to act as a check on Arafat. Now that Abbas occupies the post of PA president, he found having an externally-baked prime minister, Fayyad, competing with him, was quite an inconvenience.
Under Abbas’ thumb
There is no doubt, then, that this government is under the thumb of Abbas. Hamdallah has been president of An-Najah University for 16 years, a job he will keep, and has ruled his “empire” with an iron fist (“The empire Hamdallah built,” Haaretz, 9 June 2013).
He has also expanded it with the assistance of Arab and Islamic aid.
Hamdallah is also the secretary-general of the Central Elections Commission, chairperson of the Palestine Exchange and a trustee of Al-Istiqlal University (formerly the Palestinian Academy for Security Sciences in Jericho).
On paper, at least, he is well positioned at the intersection of economic, political and security spheres. But the question remains how much power he will have and what his real mandate is.
Although he leans toward Fatah, Hamdallah’s religious orientation means he is well-liked by Hamas leaders. Indeed, Hamas has not objected to Hamdallah as a person, but perceives his government and his appointment, as it did those of his predecessors, as illegal.
Though this could slightly improve the chances of achieving Palestinian unity, bridging the divide between Fatah and Hamas will remain beyond Hamdallah’s reach. That matter stands firmly with Abbas and his international sponsors on the one hand, and Hamas leader Khaled Meshaal, his political bureau and their calculations on the other.
It is also commonly believed that Hamdallah has strong relations with Arab donors, particularly from the Gulf, which would be an asset given the PA’s chronic budget crises and might help if Palestinian unity is to be achieved.
Yet running a university is not the same as running the affairs of a society under occupation. While Hamdallah has no reputation for corruption, it remains to be seen whether he is ready, willing or able to deal with the complex networks of corruption and cronyism that are embedded in Oslo framework.
Hamdallah has received strong backing from influential Palestinian tycoon Munib Masri, who gave him the nickname “Dameer” — the conscience — in a largely sympathetic New York Times profile (“Palestinian Authority’s new premier admired as ‘conscience,’” 3 June 2013).
This positive coverage reflected that of local media stressing Hamdallah’s “human” side.
However, these emotional appeals aside, the prime minister’s position is a political position and by definition it is about political stances, economic policies and the style of governance. Being kind and “full of humanity” is certainly a good thing, but those attributes, however real they may be, are not sufficient.
Hamdallah’s appointment — whatever genuine qualities he may have — will reveal once again that what matters are the realities on the ground and the practices of those who hold the power, especially Israel and its international backers.
Illegal appointment?
Notwithstanding the formal ceremonies of Hamdallah’s swearing in, the legitimacy of the government — or lack of it — is another crucial dimension.
The Palestinian Basic Law requires that a new government be approved by the Palestinian Legislative Council. Fayyad’s governments never obtained such approval, and Hamdallah’s is not likely to either.
As a consequence of the split between the Ramallah and Gaza wings of the PA, the Palestinian Legislative Council elected in 2006, in which Hamas has a majority, has rarely met and several of its members remain imprisoned by Israel.
The executive committee of the Palestine Liberation Organization, chaired by Abbas, has lent its support to the Hamdallah government. Dr. Hanan Ashrawi, one the executive committee members, told the media that what she cared about was local legitimacy and how the Palestinian people perceive themselves, not what Kerry, British Foreign Secretary William Hague, or the European Union’s foreign policy chief Catherine Ashton might say.
But in reality, these external powers, who were the main backers of Fayyad, would be unlikely to object to Hamdallah on the grounds that he lacks approval by the Palestinian Legislative Council. As long as the fundamental political issues that led to the Palestinian divide remain, the crisis of internal legitimacy will not go away either.
Mounting bills
Bassam Zakarneh, head of a union for public sector workers, warmly welcomed Hamdallah’s appointment, telling the Ma’an news agency that the “era of targeting the pockets of people will stop.” This was a reference to the economic policies of Fayyad.
It remains to be seen how warm this welcome will remain, given that Hamdallah will face the same challenges as Fayyad, but might even have fewer tools with which to tackle them. Indeed, as the new cabinet met for the first time, Muhammad Mustafa, deputy prime minister for economic affairs, declared that “there is a major financial crisis and the PA is $4.2 billion in internal and external debt” PA official warns of worsening financial crisis,” Ma’an, 17 June 2013).
In a press conference on the West Bank economy, Mustafa also warned that unemployment has soared to 40 percent. Young people comprise most of the 250,000 jobless.
But perhaps one advantage Hamdallah has is that, unlike Fayyad, he is not perceived by the public as someone imposed by the West, or whose appointment was a condition of international aid. Fayyad, by contrast, was seen as a figure with international backing parachuted in to carry out the demands of external donors. Whether this takes Hamdallah very far remains to be seen.
Hamdallah’s first day on the job indicated how great the challenges he faces are likely to be.
In Hebron, protesters demanded the appointment of a minister from the city since they felt marginalized. Hamdallah reacted immediately, and in an attempt to co-opt the protest, appointed a minister of culture from Hebron.
On the same day, the minister of national economy was forced to flee from strong criticism and questioning at the national conference on boycott, divestment and sanctions in Bethlehem. The minister’s imperious response to the questioning prompted the audience to chant for him to leave, which he did.
The audience member who had posed the questions was badly beaten afterwards by a group of men which he alleged included members of minister’s entourage.
A week later, a protest was organized in Nablus urging the new government to bring an end the skyrocketing cost of living by reducing value added tax on basic goods. The protesters also demanded that the PA reconsider or even disavow the Paris Protocols, the economic agreement that gives Israel continued control over key aspects of the Palestinian economy, including external trade.
A protest organizer argued that it was a “message to the Hamdallah government telling him we were disappointed by his comments highlighting that he will follow in the former government’s footsteps” (“ Protests in Nablus against high cost of living,” Ma’an, 15 June 2013).
These three incidents reflect part of the anger directed toward the Palestinian Authority and its policies, particularly “economic peace” and normalization with Israel.
The previous governments over the last six years had created structural changes and transformations, largely negative, in the West Bank. The current government needs to deal with their consequences or face the possibility of even more open protest and opposition.
Ritual restatement of dogma
Notwithstanding Abbas’ declarations that the new government would follow his program and directives, the rules for the PA have already been laid out by Kerry and Tony Blair, the former British prime minister who now works as a “special representative” for the Middle East “Quartet” (the US, EU, UN and Russia).
Again, the international “representatives” are emphasizing an economic approach, because they have no political horizon to offer Palestinians with the peace process effectively dead.
Blair in his congratulation letter to Hamdallah declared:
I look forward to working closely with him on expanding the Palestinian economy, and boosting the institution-building agenda of the PA in preparation for independence and the establishment of a sovereign Palestinian state.
I believe that the viability of the future Palestinian state will depend on a strong and sustainable economy, and I believe that we need to continue to grow the economy in parallel with the resumption of political talks.
For his part, Kerry said, “Together, we can choose the path of a negotiated two-state settlement that will allow Palestinians to fulfill their legitimate aspirations, and continue building the institutions of a sovereign and independent Palestinian state that will live in peace, security, and economic strength alongside Israel.”
The focus on the economic dimension and the sacred commitment to the two-state solution are nothing but a ritual restatement of dogma that is as far as ever from translating into a positive reality for Palestinians That is a reality that Hamdallah will be unable to change.
Finally, while this government is supposed to be transitional and last only until September, initial signs are that it will last much longer.
Deputy Prime Minister Mustafa told Ma’an that “the government is working to prepare a three-year plan. This will start with a plan for the next 100 days. The government plans as if it will stay forever and therefore we need to develop a long term plan for the next three years and a team has already start working on this plan.”
But this statement isn’t the only reason to believe Hamdallah may be there for a while: there is very little chance of Hamas and Fatah patching up their differences and forming an alternative, unity government in the next three months.
The bottom line is clear: the trappings of sovereignty of what amount to papier-mâché governments under occupation will never liberate a nation. What they have done, and what this government will certainly contribute to further, is transforming a national liberation movement into a big bureaucratic body — one that is a burden on the Palestinian people and that sustains the military occupation directly and indirectly.
Palestinians, meanwhile, yearn for a legitimate and capable leadership, accountable to them, and which is able to put forward a vision and plan to realize their collective and individual rights — and to put it into action.
Alaa Tartir is programme director of Al-Shabaka, the Palestinian Policy Network. He is the author of The Role of International Aid in Development: The Case of Palestine 1994-2008 (Lambert 2011).
Abbas aides to meet with Palestinian PM following sudden resignation
Rami Hamdallah will have to decide where he is headed, either retracting his resignation or confirming it, leaving after less than three weeks in office.
By Jack Khoury, Ha’aretz
June 21, 2013
Palestinian Authority officials spent most of Thursday night waiting for the results of negotiations between new Palestinian Prime Minister Prof. Rami Hamdallah and a delegation on behalf of President Mahmoud Abbas. The two sides met in an effort to resolve the crisis what began when Hamdallah publicly announced his resignation on Thursday evening.
Palestinian sources reported Hamdallah and Abbas will meet again in order to sort out the dispute between the prime minister and his two deputies, Mohammed Mustafa and Ziad Abu Amru, who also serve as senior advisors to President Abbas.
At this meeting, which will include the two deputies, Hamdallah will have to decide where he is headed, either retracting his resignation or confirming it, leaving after less than a month in office.
Palestinian sources reported that Hamdallah left his office on Thursday afternoon and drove his private vehicle straight to his native village of Anbata, near Tul Karm. Neither he nor his office delivered any announcement or gave any details.
The official Palestinian news agency WAFA completely ignored the announcement of his resignation and relayed no further information on the subject. The implication is that as far as Abu Mazen is concerned, the last word has not been spoken yet on this issue, even though Al Hamdallah announced his resignation on his Twitter account. His account only had one other tweet from the day he assumed office.
Sources within Abbas’ bureau told Haaretz that the president was furious that Hamdallah had resigned so suddenly, announcing it publicly before informing him: “There is a feeling here that Abu Mazen is very angry with this move but has not yet decided whether to accept the resignation, once again embarking on choosing from a mix of possible names and all the speculations about the next prime minister, or whether to sort out the issues with the prime minister and his deputies.”
Al Hamdallah’s announcement came as a total surprise in Ramallah and the West Bank. The resignation is perhaps due to disputes between Al Hamdallah and senior members of his cabinet, mainly with his two deputies Mustafa and Abu Amru. The disputes apparently involved interference with Hamdallah’s authority and the scope of his activities.
People who had been with Hamdallah over the last few days noted that he had not shown any signs indicating his intention to resign.
On the contrary, “he sounded ambitious and talked of the need to strengthen the Authority economically, and of his efforts to advance several internal initiatives”, one of these sources told Haaretz. Yesterday, Al Hamdallah met with the European Union’s foreign minister, discussing the general state of the Authority.
A senior Palestinian official told Haaretz that “Hamdallah accepted his position with good intentions, but everyone knew that his background was academic, and he had little political experience.”
Over the last few days talks were held in an effort to improve his standing in the international arena. This was also discussed in yesterday’s meetings. According to a senior Fatah official, officials involved in the political melee in Ramallah expected a confrontation between him and his deputies, particularly with Mustafa.
According to the same source, ever since the resignation of former Prime Minister Dr. Salam Fayyad, Mustafa acted as if he were the next prime minister. “He is very close to the President and accompanied him to several very important meetings, but Abu Mazen, in an astute move, decided to nominate a less prominent personality such as Al Hamdallah, and the dominant Mustafa became his deputy. In practice, he continued to act as Prime Minister, and this quickly led to the clash.”
Hamdallah only managed to convene two cabinet meetings, as well as visiting the Al Aqsa mosque in Jerusalem, a move seen as a precedent. He is 54-years-old and well known among Palestinian intellectuals. He is considered an independent, and does not belonging to the Fatah movement. He has no political backing, and does not enjoy Western support as did his predecessor Fayyad.
Apparently there was no great feeling of shock or surprise following reports of Hamdallah’s resignation. Rather, there was the usual apathy that prevails these days in a Palestinian society that rejects everything connected with rulers and the establishment, both in the West Bank and in Gaza. People are fed up with the split between Hamas and Fatah and are worried about the future due to severe economic hardship and a cloudy political horizon.
On Friday and Saturday, Palestinians may have some joy if the young Gazan Mohammed Asaf wins in the finals of Arab Idol, a program based on The Voice which is produced by the Saudi network MBC. Asaf has united many and has a good chance of bringing home the victory.
Palestinian govt crisis looms as Abbas to meet PM
On Thursday night, a delegation dispatched by Abbas traveled to Hamdallah’s home in Tulkarem, in the northern West Bank, to try to persuade him to reverse his decision to step down, but failed.
By AFP/Ahramonline
June 21, 2013
New Palestinian Prime Minister Rami Hamdallah attends his first meeting of the new government cabinet in the West Bank city of Ramallah, Tuesday, June 11, 2013 (Photo: AP)
Palestinian president Mahmoud Abbas on Friday weighed his response to a resignation offer from independent prime minister Rami Hamdallah that has thrown the West Bank-based government into disarray just two weeks after it took the oath.
Hamdallah presented his resignation on Thursday, only two weeks after taking office, in the latest crisis for the Palestinian Authority, as government sources and media say he wants to quit over a power struggle.
Abbas is due to meet Hamdallah at 6:00 pm (1500 GMT) at the president’s headquarters in Ramallah and he will “try to convince him to withdraw his resignation,” an official close to the prime minister told AFP on condition of anonymity.
On Thursday night a delegation dispatched by Abbas travelled to Hamdallah’s home in Tulkarem, in the northern West Bank, to try to persuade him to go back on his decision, but failed.
Hamdallah has been incensed by a decision by Abbas to appoint two deputy premiers in the government formed on June 6, after the resignation of former prime minister Salam Fayyad, a Western-backed economist who quit after a spat with the Palestinian president.
Hamdallah was “upset over his treatment by his two deputy prime ministers, Ziad Abu Amr and Mohammed Mustafa, and their attempts to gain powers not assigned to them,” the official said.
“Mustafa was authorised by Abbas to sign all economic agreements, particularly those with the World Bank, without the consent of Hamdallah,” he said.
Hamdallah objected saying these were prime ministerial powers, the official added.
Mustafa, who heads the Palestine Investment Fund and was handed the role of economic adviser, was initially tipped as a possible successor to Fayyad.
Mustafa, not Hamdallah, gave the first news conference after the new 25-member cabinet held its first meeting on June 11, raising a few eyebrows.
A government source, meanwhile, told AFP that initial cabinet meetings were plagued with bickering over trivial issues such as who was allowed to sit in which seat, and whether people could smoke or not.
Commentators viewed Hamdallah’s resignation as inevitable.
Abdel Majid Sweilam, a Palestinian political analyst, said Hamdallah had “not looked forward to being prime minister. He accepted the position only on a temporary basis, proved by the fact he didn’t resign from his job as head of Al-Najah University in Nablus.”
Hamdallah “cannot be an effective prime minister in light of the encroachment on his powers — two deputies to him were appointed directly by the president,” said Sweilam.
Pan-Arab newspaper Al-Quds al-Arabi said “Hamdallah wants to be a prime minister in fact, and to have the final say on prime ministerial issues, but the Palestinian Authority wants him to be just a puppet.
“The clash was inevitable and the resignation assured.” it said.
“What pushed Hamdallah to go was interference and overstepping (of authority) by Mustafa,” the newspaper added.
Hamdallah, an independent considered close to Abbas’s ruling Fatah faction who was also secretary general of the Central Election Commission, pledged after his nomination to follow a similar path to Fayyad and said he would leave the government line-up largely unchanged.
He made clear he would quickly step aside in the summer after the planned formation of a government of national unity comprising Fatah and its Islamist rival, Hamas.
Fayyad resigned mid-April after months of difficult relations with Abbas which culminated over the resignation of finance minister Nabil Qassis, which the premier accepted but the president did not.
Fayyad was widely respected by the international community for building a sound institutional framework for the Palestinian Authority, and his resignation sparked concern over who would take up his mantle.
But Washington and Europe welcomed the appointment of Hamdallah, who was seen even by Israeli media as a “moderate and pragmatist.”
President to meet Hamdallah over PM’s resignation
By Ma’an news
June 21, 2013
RAMALLAH — President Mahmoud Abbas will meet newly-appointed Prime Minister Rami Hamdallah on Friday to discuss his resignation, officials said.
Sources in Tulkarem, where Hamdallah lives, told Ma’an that the premier would meet Abbas at the president’s office in Ramallah at 6 p.m.
High-level government officials said the presidency had made intensive efforts to persuade Hamdallah not to resign but that the attempts were unsuccessful.
Tayib Abdul-Rahim, Abbas’ top aide, and intelligence chief Majid Faraj left Hamdallah’s home in Anabta on Thursday evening after more than three hours of talks trying to convince him to reconsider.
A Ma’an reporter in Tulkarem said the meeting ended without either side making a statement.
If he insists on his resignation, the president, under law, must appoint a new premier.
Hamdallah left his office in Ramallah at noon Thursday in a private car after offering his resignation, knowledgeable sources told Ma’an.
They said the premier submitted his resignation to Abbas following a heated argument between his deputies Muhammad Mustafa and Ziad Abu Amr.
A new 25-member cabinet under Hamdallah’s leadership was sworn in on June 6 and, notably, included the appointment of two deputy prime ministers, Ziad Abu Amr and Mohammed Mustafa.
Mustafa, who heads the Palestine Investment Fund and was handed the role of economic adviser, was initially tipped as a possible successor to Fayyad.
When the new government was sworn in, it was he who held the first news conference following its initial cabinet meeting on June 11, not Hamdallah, in a move that raised a few eyebrows.
Hamdallah, an independent considered close to Abbas’s ruling Fatah faction who was head of Al-Najah University in Nablus and secretary general of the Central Election Commission, quickly pledged after his nomination to follow a similar path to Fayyad and said he would leave the government line-up largely unchanged.
And he made clear he would quickly step aside in the summer after the planned formation of a government of national unity comprising Abbas’s Fatah and its Islamist rival, Hamas.
Fayyad resigned in mid-April after months of difficult relations with Abbas which hit a crisis over the resignation of finance minister Nabil Qassis, which the premier accepted but the president did not.
That power struggle resulted in Fayyad stepping down but staying on as caretaker prime minister upon Abbas’s request, with his term drawing to a close on June 2.
Fayyad was widely respected by the international community for building a sound institutional framework for the Palestinian Authority, and his resignation sparked concern over who would take up his mantle.
But Washington and Europe welcomed the appointment of Hamdallah, who on Wednesday had held his first meeting with EU foreign policy chief Catherine Ashton.
Congratulating him on his new position, Ashton pledged to continue European economic support and also support for the peace process.
“I am very much looking forward to working with you and, as I said, I wish you every success,” she told him, in remarks communicated by a spokesman.
Fayyad’s departure came at a difficult time for Washington, as US Secretary of State John Kerry seeks to revive peace talks after a nearly three-year hiatus.
During his last visit at the end of May, Kerry pledged to push through a $4-billion plan to develop the Palestinian economy.
He is to return to the region next week to continue pushing the two sides to find a way back to direct negotiations which broke down in September 2010, just weeks after they were relaunched.
Notes and links
Ziad Abu Amr, age 63. Member of the Palestinian Legislative Council, briefly foreign minister PA in 2007, appointed Deputy Prime Minister in June 2013 by President Mahmoud Abbas. Academic (political analysis) and author of, amongst other books, Islamic Fundamentalism in the West Bank and Gaza: Muslim Brotherhood and Islamic Jihad. Regarded as pro-reform and in favour of opening PA politics to non-Fatah representatives.
Mohammed Mustafa
In a meeting with reporters last week, Mohammed Mustafa, the deputy prime minister in charge of financial affairs, called the social challenges “very scary”.
“We are reviewing the economic policies of the last government to improve our citizens’ situation and lighten the burden they’re carrying,” Mustafa said.
The Palestinian Authority, which exercises limited self-rule in the West Bank under interim peace accords with Israel, will boost revenue by ensuring countries deliver pledged aid money – and enforcing tax collection, Mustafa said.
But he acknowledged that 70 percent of PA revenues come from sources it cannot control, whether from abroad or at its own borders where Israel collects customs duties on the PA’s behalf. Israel has withheld the transfers during times of dispute with the Palestinian government.
The Paris Protocol
The Paris Protocol is the framework establishing the interim-period economic relations between Israel and the Palestinian Authority. The Protocol was signed in April 1994 and is part of Oslo 1, which was signed a few days later. The model established in the Protocol is known as a “customs union,” the primary characteristic of which is the absence of economic borders between members of the union. The practical effect of selecting this model was preservation of the economic relations that had existed until then, i.e., a Palestinian economy integrated in and dependent on the Israeli economy.