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I. QUARTET PRINCIPALS ISSUE STATEMENT IN SUPPORT OF ONGOING ISRAELI-PALESTINIAN NEGOTIATIONS<\/strong><\/p><\/div>\n<\/p>\n
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\t<\/span>The following is the text of the statement issued on 2 May 2008 in London by the Quartet principals (SG\/2137).<\/i><\/p><\/div>\n<\/p>\n
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\t<\/span>Representatives of the Quartet Secretary-General Ban Ki-moon, Russian Foreign Minister Sergey Lavrov, United States Secretary of State Condoleezza Rice, High Representative for European Common Foreign and Security Policy Javier Solana, European Commissioner for External Relations Benita Ferrero-Waldner and Slovenian Foreign Minister Dimitrij Rupel met today in London to discuss the situation in the Middle East. They were joined by Quartet Representative Tony Blair.<\/p><\/div>\n<\/p>\n
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\t<\/span>The Quartet expressed its strong support for ongoing Israeli-Palestinian negotiations and encouraged the parties to make every effort to realize the shared goal of an agreement on the establishment of a Palestinian State by the end of 2008. Commending the parties for their continuous and intensive negotiations, the Quartet emphasized the urgent need for progress and called on the international community to remain constructively engaged in support of negotiations with the goal of the establishment of a Palestinian State in the West Bank and Gaza and an end to the conflict.<\/p><\/div>\n<\/p>\n
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\t<\/span>The Quartet emphasized the importance of visible progress on the ground to build confidence and create an atmosphere supportive of negotiations. The Quartet welcomed concrete steps by both sides in the wake of the trilateral meeting between Secretary of State Rice, Prime Minister Fayyad and Defence Minister Barak, and stressed the urgent need for rapid and continued implementation of these and previous commitments to improve conditions on the ground. While taking note of some positive steps, including the removal of some roadblocks and an outpost by Israel, and improved security performance by the Palestinian Authority, the Quartet noted that much more remained to be done to improve the situation on the ground in order to change the conditions of life in the West Bank and to keep the political process on track. <\/p><\/div>\n<\/p>\n
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\t<\/span>In that context, the Quartet expressed its support for Quartet Representative Tony Blair and underscored the urgent need for progress and close donor coordination. It also expressed its strong backing for the planned Bethlehem conference on private sector investment in May as well as the parties’ agreement to improve security and economic conditions in Jenin, which could offer a model for important progress on the ground. <\/p><\/div>\n<\/p>\n
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\t<\/span>Noting the particular importance of justice sector reform, the Quartet looked forward to the meeting that would take place in Berlin in June to promote and coordinate donor assistance in that area. <\/p><\/div>\n<\/p>\n
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\t<\/span>The Quartet called upon both sides to fulfil their obligations under the Road Map. <\/p><\/div>\n<\/p>\n
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\t<\/span>It also called on both sides to refrain from any steps that undermined confidence or could prejudice the outcome of negotiations. In that context, the Quartet expressed its deep concern at continuing settlement activity and called on Israel to freeze all settlement activity including natural growth, and to dismantle outposts erected since March 2001.<\/p><\/div>\n<\/p>\n
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\t<\/span>It called on the Palestinian Authority to fulfil its commitments to fight terrorism and to accelerate steps to rebuild and refocus its security apparatus. It urged Israel and the Palestinian Authority to increase cooperation in that respect and to facilitate the delivery of security assistance to the Palestinian Authority. <\/p><\/div>\n<\/p>\n
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\t<\/span>The Quartet condemned continuing rocket attacks from Gaza on southern Israel, including against Sderot and Ashkelon, as well as the terrorist attacks at a seminary in Jerusalem on 6 March. The Quartet also expressed deep concern at Palestinian civilian casualties, including the recent death of a mother and four of her children in Gaza. It called for an end to all violence and terror and urged all parties to take all feasible steps to ensure the protection of affected civilians in accordance with international law. <\/p><\/div>\n<\/p>\n
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\t<\/span>Noting its deep concern over humanitarian conditions in Gaza, the Quartet called for continued emergency and humanitarian assistance and the provision of essential services to Gaza without obstruction. The Quartet expressed its continuing concern over the closure of major Gaza crossing points given the impact on the <\/p><\/div>\n\n
Palestinian economy and daily life. The Quartet condemned the terrorist attack on Nahal Oz fuel terminal on 9 April, and noted that such attacks on the Gaza crossings interfered with the supply of essential services and undermined the interests of the Palestinian people. The Principals strongly encouraged Israel, the Palestinian Authority and Egypt to work together to formulate a new approach on Gaza that would provide security to all Gazans, end all acts of terror, provide for the controlled and sustained opening of the Gaza crossings for humanitarian reasons and commercial flows, support the legitimate Palestinian Authority Government, and work towards conditions that would permit implementation of the 2005 Agreement on Movement and Access. <\/p><\/div>\n
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\t<\/span>Looking forward to a productive meeting of the Ad Hoc Liaison Committee, the Quartet encouraged all parties to do their part to support Palestinian institutional capacity-building and economic development. The Quartet called for all donors to follow through on pledges made at the December 2007 Paris donors’ conference. Underlining the crucial role of Arab States in support of the peace process and the importance of the Arab League peace initiative, the Quartet encouraged the Arab States to fulfil both their political and financial roles in support of the Annapolis process. <\/p><\/div>\n<\/p>\n
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\t<\/span>The Quartet also discussed the proposal for an international meeting in Moscow to lend continued support to the parties in their negotiations and efforts on the ground.<\/p><\/div>\n<\/p>\n
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\t<\/span>The Quartet authorized its envoys to continue to work to facilitate the achievement of all of those goals.<\/p><\/div>\n<\/p>\n
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\t<\/span>The Quartet reaffirmed its commitment to a just, lasting and comprehensive peace in the Middle East based on Security Council resolutions 242 (1967), 338 (1973), 1397 (2002) and 1515 (2003).<\/p><\/div>\n\n
II. SECRETARY-GENERAL ADDRESSES MEETING OF AD HOC LIAISON COMMITTEE IN LONDON<\/strong><\/p><\/div>\n<\/p>\n
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\t<\/span>The following are Secretary-General Ban Ki-moon’s opening remarks at the meeting of the Ad Hoc Liaison Committee of donors held in London on 2 May 2008 (SG\/SM\/1154\/Rev.1).<\/i><\/p><\/div>\n<\/p>\n
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\t<\/span>Let me thank you, Mr. Chairman and Mr. Foreign Secretary, for bringing us together at such a crucial time. Prime Minister Fayyad and Foreign Minister Livni, I am delighted that you were able to attend.<\/p><\/div>\n<\/p>\n
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\t<\/span>We meet at a vital juncture, just as the Quartet has issued a statement applauding the parties for their continued commitment to serious political negotiations. Now we must back up these negotiations with real change on the ground – change that allows Palestinians and Israelis to believe in a positive future. Only in this way can we lend substance to the process and send a clear message to people in the Occupied Palestinian Territory and Israel that it is meaningful and beneficial to each side.<\/p><\/div>\n<\/p>\n
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\t<\/span>Following the initial steps by the parties, as well as by Quartet Representative Tony Blair, more needs to happen to translate these early achievements into enduring developments on the ground.<\/p><\/div>\n<\/p>\n
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\t<\/span>There will be several opportunities to demonstrate our commitment. President Bush’s visit to the region represents one such opportunity. The Palestine Investment Conference in Bethlehem, and the Conference in Support of Palestinian Civil Security and Rule of Law in Berlin, will represent other demonstrations of commitment over the next few weeks.<\/p><\/div>\n<\/p>\n
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\t<\/span>This Committee has a key role to play as a platform for peace and development for both Israel and Palestinians. The vision behind the Palestinian Reform and Development Plan is that all parties should contribute in parallel to economic improvement. Over the past six months, the cooperation framework has brought together the ongoing political dialogue with joint committees, the reform efforts made by the Palestinian Authority in a difficult environment and the generous support pledged by donors in Paris.<\/p><\/div>\n<\/p>\n
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\t<\/span>Israel’s support is vital to Palestinian economic revival, reform and development, and I welcome its recent announcement of measures to ease conditions in the West Bank. Now, both parties need to continue their work to fully meet their obligations under the Road Map. Palestinians need to do more to ensure security, and Israel needs to further ease restrictions on permits, movement and access – a precondition to any substantive economic progress.<\/p><\/div>\n<\/p>\n
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\t<\/span>I remain deeply concerned about the de facto separation of the two parts of the Occupied Palestinian Territory and the continuing violence in Gaza. The humanitarian and economic situation there continues to deteriorate and the civilian population is finding itself increasingly cut off from the world.<\/p><\/div>\n<\/p>\n
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\t<\/span>It is obvious that a new strategy is required – one which ensures the passage of people, humanitarian and commercial goods, and which leads to the reunification of Gaza with the West Bank within the framework of the legitimate Palestinian Authority. I am heartened that there is strong Quartet consensus on this issue.<\/p><\/div>\n<\/p>\n
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\t<\/span>The United Nations will continue to provide critical humanitarian assistance in Gaza and development support in the West Bank. It is critical that restrictions are eased on United Nations operations.<\/p><\/div>\n<\/p>\n
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\t<\/span>Finally, I look forward to hearing from the parties about how they see the next few months. I’m sure I speak for all of us in saying that our priority is putting an immediate end to violence and bloodshed, stepping up creative efforts on addressing the situation in Gaza and improving the economy.<\/p><\/div>\n<\/p>\n
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\t<\/span>Whatever the many and real difficulties ahead, let us remember that there is only one path for both peoples to achieve the peace, freedom, security and prosperity they deserve: a permanent political settlement leading to an end to the occupation that began in 1967; the establishment of a sovereign, viable, contiguous and democratic Palestinian State, living side by side in peace with a secure Israel; and an end of conflict, in accordance with Security Council resolutions.<\/p><\/div>\n\n
III. WORLD BANK ISSUES STUDY ON PALESTINIAN REFORM AND DEVELOPMENT AGENDA<\/strong><\/p><\/div>\n<\/p>\n
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\t<\/span>At the Ad Hoc Liaison Committee meeting in London on 2 May 2008, the World Bank presented a study entitled “Implementing the Palestinian reform and development agenda.” The executive summary of the study is reproduced below.<\/i><\/p><\/div>\n<\/p>\n
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\t<\/span>At the Ad Hoc Liaison Committee meeting in New York on 23 September 2007, the World Bank summarized the changing course of the Palestinian economy since 2000 from one driven by investment and private sector productivity to one sustained by government spending and donor aid. After a good performance in the latter 1990s, the fragile Palestinian economy entered a gradual downward cycle of crisis and dependence, as it was confounded by political and security events in the West Bank and Gaza, the continued growth in settlements, Israeli restrictions on movement and access since the second intifadah, and finally the 2006 drop in donor aid. Unable to find opportunities in a shrinking private sector, a young and rapidly expanding labour force has turned to the public sector to create jobs and increase spending to alleviate poverty, at the expense of further investment in the economy’s productive potential. This trend, under way since 2000, was most acute in the aftermath of the elections in 2006. <\/p><\/div>\n<\/p>\n
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\t<\/span>The analysis that was presented at the 2007 Meeting of the Liaison Committee showed that reversing this downward trend required parallel actions by the Palestinian Authority, Israel and the donors. In addition, these parallel actions were regarded as effective insofar as they addressed the entirety of the Palestinian population. Reform and development of the Palestinian economy – including Gaza, which represents about 40 per cent of the population – and its institutions were to resume through the implementation of the Authority Palestinian Reform and Development Plan. To succeed, the Plan was to be underwritten by donors and supported by Israeli efforts to loosen restrictions on the movement of goods and people within and out of the West Bank and Gaza. It was argued that the impact of donor aid was highest when accompanied by concrete and parallel Palestinian Authority and Israeli actions, but that the consistent flow of aid should not be predicated on them – aid remained critical to ensure the survival of Palestinian institutions that underpinned the peace process. <\/p><\/div>\n<\/p>\n
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\t<\/span>The expectations set at the Liaison Committee Meeting in New York were that several developments could trigger a change in the course of the Palestinian economy: not least the Annapolis conference of 27 November 2007, where Prime Minister Olmert and President Abbas agreed to resume peace negotiations and resolve core issues by the end of 2008; the progress in bilateral discussions on key issues and the formation of seven Israeli-Palestinian working groups; and the Paris donor conference on 17 December 2007, where representatives of 87 States and organizations pledged $7.7 billion in financial support for the Palestinian Reform and Development Plan for 2008-2010. In furtherance of those efforts, several critical measures were initiated by the parties, including those by Quartet Representative Tony Blair, to rebuild confidence and momentum towards an economic recovery. <\/p><\/div>\n<\/p>\n
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\t<\/span>This World Bank study will show that, despite these and other efforts since the 2007 Liaison Committee Meeting the virtuous cycle of economic growth arising from parallel actions by the Palestinian Authority, Israel and the donors has not been fully realized. The formation of the caretaker Government in mid-2007 and the resumption of aid have reversed the impacts of the aid boycott in 2006 and 2007, but only partially. Real gross development product was negative in the first half of 2007 but began to recover in the West Bank during the second half. Because of the situation in Gaza, real GDP growth in 2007 is estimated to be about 0 percent which, given the rapidly growing population, indicates falling per capita income. The contributing effects of the closures and movement restrictions cannot be overestimated. <\/p><\/div>\n<\/p>\n
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\t<\/span>Moreover, economic indicators have not changed considerably, despite the resumption in aid. Unemployment in the West Band and Gaza stood at nearly 23 per cent in 2007, up from only 10 per cent before the beginning of the Intifada in 2000. Unemployment is highest in Gaza, at nearly 33 per cent of the active work force. This rate is likely to become much higher as the layoffs in the industrial sector become permanent. <\/p><\/div>\n<\/p>\n
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\t<\/span>As a tripartite action plan, the implementation of the Palestinian Reform and Development Plan has begun in earnest, but progress has been only partial. The Palestinian Authority has implemented a sequence of steps centering on control of expenditures and medium-term reforms to bring the Authority back to financial sustainability, and has achieved some important milestones in this area. The Plan has been underwritten by donors who, at the time of the study, had already transferred half of their pledges made in Paris towards recurrent expenditures, either through direct transfers to the Palestinian Authority’s central treasury account, through the European Community’s new PEGASE (Mécanisme Palestino-Européen de Gestion de l’Aide Socio-Économique) instrument, or through the World Bank’s new multi-donor trust fund linked to the Plan. The efforts of the Quartet Representative have also introduced a set of concrete deliverables that, if adopted by the parties, could help trigger a much-needed private sector response. However, the private sector revival required for a virtuous cycle of growth has not been realized due to continued restrictions on movement and access. As a result, the economic scenarios presented at the Paris conference, proposing that the implementation of Palestinian commitments alone is a necessary but insufficient condition for economic growth, have been confirmed by the zero GDP growth in the West Bank and Gaza in 2007. As for 2008, the International Monetary Fund analysis and Liaison Committee report note a projected GDP growth of 3.0 per cent that, taking into account population growth, leaves per capita incomes static if not lower than the previous year. <\/p><\/div>\n<\/p>\n
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\t<\/span>Regardless of the scenario, Palestinian Authority reforms and adequate donor aid – covering both recurrent and development spending – remain necessary but insufficient preconditions for economic recovery in the West Bank and Gaza. A scenario where Palestinian Reform and Development Plan reforms continue, where they are fully funded by donors, and where private sector growth and trade is revived as a result of easing movement and access restrictions, will result in accelerated growth rates at double digit levels. Embedded in this scenario is a recovery in Gaza driven by the resolution of the current stalemate, and its immediate inclusion in the benefits of reforms, donor aid and the lifting of movement restrictions. <\/p><\/div>\n\n\t\t\t\t
IV. INTERNATIONAL MONETARY FUND REPORTS ON PROGRESS OF<\/strong>\n\t\t\t\t<\/div>\n\n\t\t\t\t
DEVELOPMENT OF MACROECONOMIC AND FISCAL<\/strong>\n\t\t\t\t<\/div>\n\n\t\t\t\t
FRAMEWORK FOR THE WEST BANK AND GAZA<\/strong>\n\t\t\t\t<\/div>\n<\/p>\n
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\t<\/span>At the Ad Hoc Liaison Committee meeting in London on 2 May 2008, the International Monetary Fund presented a report on the progress of the development of a macroeconomic and fiscal framework for the West Bank and the Gaza Strip. The executive summary of the report is reproduced below.<\/i><\/p><\/div>\n<\/p>\n
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\t<\/span>The Palestinian Authority is implementing prudent fiscal policies and reforms, in the context of an ambitious budget for 2008. A strict government employment policy has been followed and utility subsidies are being reduced. The Public Financial Management System has also been strengthened, which will help control non-wage spending. The 2008 budget builds on this progress and targets a reduction of the recurrent deficit from 27 per cent of GDP in 2007 to 22 per cent of GDP in 2008, in particular through: (a) a freeze on wage rates and on new employment (except for health and education); (b) enforcement of measures to increase utility payments by households and municipalities; and (c) improvement in cash management and spending commitment controls to help prioritize and raise the quality of spending and minimize arrears accumulation. The staff considers that the reforms undertaken so far, and the 2008 budget, represent a significant stride towards fiscal sustainability. <\/p><\/div>\n<\/p>\n
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\t<\/span>Donor assistance pledged for the recurrent budget falls short of the Palestinian Reform and Development Plan needs. The total amount pledged at the December 2007 Paris donors’ conference for 2008–2010, at $7.7 billion, is significantly above the Plan requirements. However, pledges allocated for the recurrent budget are below those needed to finance the projected deficits. For 2008, the amounts disbursed or confirmed are adequate to cover recurrent financing needs for the first half of the year. However, without additional assistance, a shortfall of 1.4 billion new sheqalim ($0.4 billion) is projected in the second half of 2008. <\/p><\/div>\n<\/p>\n
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\t<\/span>Adequate and timely disbursements from donors, and close coordination with the Palestinian Authority, are essential to prevent liquidity problems and expenditure arrears. Israel has tightened restrictions on movement and access based on security concerns, and settlements in the West Bank have expanded, with attendant risks to economic growth and reforms. Social and political pressures against austerity measures have recently increased, conveyed through protests and strikes by trade unions. These pressures could grow if household incomes and employment opportunities remain constrained, posing significant risks to fiscal adjustment. <\/p><\/div>\n<\/p>\n
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\t<\/span>Good cooperation among the three parties – the Palestinian Authority, the Government of Israel and donors – is essential to reduce the risks outlined above. The Authority has undertaken bold reforms despite the difficult political and security environment. These reforms have encouraged donors to fully cover the Authority’s external financing requirements for the first half of 2008, including through the creation of the World Bank’s Trust Fund for the Reform and Development Plan. The Government of Israel’s recent announcement that a number of obstacles in the West Bank would be removed soon is encouraging and could hopefully be followed by a broader relaxation of restrictions on movement and access in 2008. <\/p><\/div>\n\n
V. ECONOMIC AND SOCIAL COMMISSION FOR WESTERN ASIA ISSUES<\/strong><\/p><\/div>\n\n
REPORT ON ECONOMIC AND SOCIAL REPERCUSSIONS OF THE<\/strong><\/p><\/div>\n\n
ISRAELI OCCUPATION<\/strong><\/p><\/div>\n<\/p>\n
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\t<\/span>On 6 May 2008, the Economic and Social Commission for Western Asia issued a report entitled “Economic and social repercussions of the Israeli occupation on the living conditions of the Palestinian people in the occupied Palestinian territory, including Jerusalem, and of the Arab population in the occupied Syrian Golan” (A\/63\/74-E\/2008\/13). The report was prepared pursuant to Economic and Social Council resolution 2007\/26 and General Assembly resolution 62\/181. The following excerpts are taken from the summary and conclusions of the report. <\/i><\/p><\/div>\n<\/p>\n
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Summary<\/strong><\/p><\/div>\n<\/p>\n
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\t<\/span>The Israeli occupation of the Palestinian territory and Syrian Golan continues to intensify the economic and social hardship of the Palestinian and Syrian people.<\/p><\/div>\n<\/p>\n
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\t<\/span>Attacks by Palestinian militants and the launching of rockets into Israeli cities from the Gaza Strip continue, as do Israeli military operations, together with measures of arbitrary detention, the disproportionate use of force, house demolitions, severe mobility restrictions and closure policies in the occupied Palestinian territory. However, there was a decline in Palestinian-Israeli violence in 2007 and an increase in intra-Palestinian violence, culminating in the takeover of the Gaza Strip by Hamas in June 2007.<\/p><\/div>\n<\/p>\n
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\t<\/span>Internal conflict in the occupied Palestinian territory has compounded existing hardships. After the Hamas takeover of Gaza, Israel imposed additional restrictions on the movement of goods and people into the Gaza Strip, which led to deteriorating conditions and shortages of basic commodities, including food, electricity and fuel. Increased restrictions on the operations of humanitarian agencies hindered the delivery of humanitarian aid in the Gaza Strip and the West Bank.<\/p><\/div>\n<\/p>\n
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\t<\/span>The Israeli closure system, which restricts Palestinian access to health and education services, employment, markets and social and religious networks, led to increased poverty and humanitarian need in the occupied Palestinian territory. Israeli settlements, land confiscation and the construction of the barrier in the West Bank, contrary to the Geneva Convention and other norms of international law, isolate occupied East Jerusalem, bisect the West Bank and curtail normal economic and social life.<\/p><\/div>\n<\/p>\n
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\t<\/span>The ongoing occupation and expansion of settlements by Israel in the occupied Syrian Golan and the restrictions imposed on the Syrian citizens living there also continue, in violation of Security Council and General Assembly resolutions.<\/p><\/div>\n<\/p>\n
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Conclusions<\/strong><\/p><\/div>\n<\/p>\n
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\t<\/span>While the number of casualties of Israeli-Palestinian violence decreased by almost half compared with 2006-2007, a combination of intensified closures and sanctions imposed by Israel and increased Palestinian internal conflict led to the measurable deepening of the socio-economic crisis in the occupied Palestinian territory in 2007. All economic, social and public health indicators reveal that standards in living conditions are declining and that there is social and spatial dismemberment, growing despair and increased violence against fellow Palestinians. Residents of the Gaza Strip have become almost completely isolated from the outside world, with access to only basic commodities and humanitarian items. <\/p><\/div>\n<\/p>\n
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\t<\/span>Both the Security Council and the General Assembly have declared that the Israeli decision to annex the Golan is null and void (Security Council resolution<\/p><\/div>\n\n
497 (1981) and General Assembly resolution 61\/27). Nevertheless, in 2007 Israel continued its expansion of settlements and violation of the rights of the Syrian residents of the occupied Syrian Golan. <\/p><\/div>\n
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\t<\/span>The situation in the occupied Palestinian territory prompted the United Nations country team to launch the 2008 consolidated appeal, which, at $454 million, represents an 8.51 per cent increase from the level of the 2007 appeal. The 2008 consolidated appeal focuses on four main issues with a view to sustaining livelihoods and preventing further deterioration:<\/p><\/div>\n<\/p>\n
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(a) humanitarian aid; (b) the protection of civilians and the implementation of international humanitarian law; (c) humanitarian monitoring and reporting; and (d) the strengthening of United Nations humanitarian coordination. While those measures are aimed at stabilizing socio-economic conditions, they are not expected to contribute to the long-term improvement of such conditions in the occupied Palestinian territory.<\/p><\/div>\n
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\t<\/span>In his message of 19 February 2008 to the United Nations Seminar on Assistance to the Palestinian People, the Secretary-General reiterated the United Nations position that only a permanent political settlement which ends the occupation and gives Palestinians their independence can fundamentally alter the economic and humanitarian problems of the Palestinian people. He stressed that the key ingredients for a breakthrough existed, pointing to bilateral negotiations and the support of donors. Finally, he expressed his belief that with the right mixture of wisdom, realism and political courage, historic progress towards the vision of two States, Israel and Palestine, living side by side in peace and security, could be made. <\/p><\/div>\n\n
VI. SECRETARY-GENERAL ISSUES REPORT ON ASSISTANCE TO THE<\/strong><\/p><\/div>\n\n
PALESTINIAN PEOPLE<\/strong><\/p><\/div>\n<\/p>\n
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\t<\/span>Pursuant to General Assembly resolution<\/i> 62\/93, the Secretary-General on 7 May 2008 submitted to the Economic and Social Council at its 2008 substantive session a report entitled “Assistance to the Palestinian people” (A\/63\/75-E\/2008\/52). The summary and the conclusions of the report, which covers the period from May 2007 to April 2008, are reproduced below.<\/i><\/p><\/div>\n<\/p>\n
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Summary<\/strong><\/p><\/div>\n<\/p>\n
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\t<\/span>During the period under review, the Palestinian economy continued to suffer hardship and decline. In the aftermath of Hamas’ takeover of the Gaza Strip and the formation of a new Palestinian Authority Government under Prime Minister Salam Fayyad, the West Bank witnessed some modest economic recovery. The Gaza Strip, however, continued to experience drastic economic decline and private sector collapse due to a near-complete closure. There was significant progress in reform and pledges from international donors in the amount of $7.7 billion for a three-year period to enable the implementation of the new Palestinian Reform and Development Plan.<\/p><\/div>\n<\/p>\n
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\t<\/span>These developments reflected the de facto political split between the West Bank and the Gaza Strip from June 2007 onwards. While bilateral political negotiations resumed between the Government of Israel and the Palestinian Authority in the context of the November 2007 Annapolis conference and the parties committed to reaching an agreement by the end of 2008, the situation in and around Gaza was characterized by near-daily rocket fire against Israeli targets and Israeli aerial attacks and military incursions.<\/p><\/div>\n