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EU-occupied Palestinian territory 2011: good progress on Action Plan but occupation and divisions hamper development

15-05-2012

In 2011, the Palestinian Authority (PA) made good progress in the implementation of its European Neighbourhood Policy Action Plan in those areas within its control. However, the occupation and internal Palestinian divisions continued to have a serious impact on the PA’s ability to serve the public effectively and to pursue economic development.
 
These are some of the conclusions of the report on progress made on implementation of the EU-PA ENP Action Plan between 1 January and 31 December 2011, released on 15 May 2012 by the European Commission. The report includes recommendations on how the Palestinian Authority can step up the implementation of the AP.
 
In the West Bank, the PA’s capacity to impose the rule of law has become more effective, with steady progress registered in justice sector reform. However, the human rights situation remains a matter of concern, particularly in the Gaza Strip, but also in the West Bank. The report says there has been no progress towards re-establishing a participatory democratic process, despite the much-heralded reconciliation agreement signed between Fatah and Hamas in May 2011 which should have led to new elections. "Under the leadership of Prime Minister Fayyad, the government continues to rule in a caretaker capacity in the West Bank, while a de-facto authority continues to rule in the Gaza Strip."
 
Despite these challenges, the PA has continued to register notable achievements in its state-building agenda. Its readiness for statehood was underlined both at the spring meeting of the Ad Hoc Liaison Committee (AHLC) hosted by the High Representative in Brussels and at the subsequent meeting held in September in New York. But the report warns that this progress risks being jeopardised as a result of the widening gap between the progress witnessed in the PA’s state-building efforts and the lack of progress on the political track, namely continued deadlock in the peace process throughout 2011 and the continuing internal Palestinian division.
 
The economy of the occupied Palestinian territory (oPt) grew by 9.5% in the first half of 2011 although there was a sharp contrast between the Gaza Strip which registered a growth of about 20%, as it began to recover as a result of the slight loosening of the Israeli blockade in 2010, and the West Bank, which slowed to 5.7%. Total unemployment fell and inflation remained moderate and relatively stable. The economy is threatened by the PA’s mounting fiscal crisis following a major shortfall in donor disbursements and insufficient easing of Israeli restrictions. This has also impeded progress towards the Action Plan goal of strengthening the PA’s administrative capacity in the area of economic reform.
 
The EU continued to be the PA’s most reliable and important partner, contributing essentially to the stabilisation of the precarious fiscal situation and, ultimately, to the stabilisation of the social situation in both the West Bank and the Gaza Strip. In 2011, the EU also granted duty-free and quota-free access to the EU market for Palestinian agricultural products, processed agricultural products, fish and fishery products.
In the social sectors, the PA’s poverty-based cash transfer programme was fully rolled out in the Gaza Strip with the support of EU technical assistance.
 
The report comes up with a number of recommendations to sustain implementation of the ENP Action Plan in 2012, inviting the Palestinian Authority to:
  • Pursue the implementation of the reconciliation agreement signed on 3 May 2011 
based on a commitment to the two-state solution.
  • Hold genuine, transparent local and national elections in the oPt in line with international standards.
  • Reform and develop the Palestinian security sector, institutionalising democratic
control, promoting an environment conducive to civilian oversight and accountability for individuals suspected of abuses, and ensuring that all security sector agencies fully respect human rights, in particular for all detainees.
  • Adopt a unified penal code which adheres to international human rights standards, including the formal abolition of the death penalty and strengthens legal guarantees for all fundamental freedoms.
  • Clarify the responsibilities of the three main judicial institutions namely the Ministry of Justice, the Office of the Attorney General and the High Judicial Council.
  • Adopt and implement the new regulatory framework for public procurement, including the adoption and harmonization of the relevant by-laws and procurement-related regulations.
  • Implement a Public Expenditure and Financial Accountability (PEFA) assessment in 2012 and continue improving public finance management, in particular by developing and upgrading the State Audit and Administrative Control Bureau (SAACB) as an independent external audit institution in line with the International Organisation of Supreme Audit Institutions standards.
  • Develop costing models and ensure appropriate allocation of the national budget to cover the cost of providing a set of basic social protection interventions, including the development and implementation of contributory schemes.
  • Sign and ratify the regional Convention on pan-Euro-Mediterranean Rules of Origin.
  • Implement the energy strategy including further progress on electricity sector reform 
particularly through further reductions in net lending.  
 
The occupied Palestinian territory Progress Report is part of a set of documents released by the EU in the framework of its annual assessment of the European Neighbourhood Policy.
 
The package also incudes reports on progress in relations between the EU and its other Neighbours in the South, and a report on the “Partnership for Democracy and Shared Prosperity”, concerning Southern Mediterranean, including a roadmap. (EU Neighbourhood Info) 
 
Read more
 
Occupied Palestinian territory 2011 ENP Progress Report and memo
 
Partnership for Democracy and Shared Prosperity: Report on activities in 2011 and Roadmap for future action 
 
EU Neighbourhood Info Centre – EU assesses reforms in the Neighbourhood (15 May)
 
EU Neighbourhood Info Centre country page Occupied Palestinian territory
 

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