The Palestinian economy has been in an ever-deepening crisis since the outbreak of the second Intifada in 2000, a crisis rooted in and perpetuated by an extremely inauspicious political setting. The record of economic decline is staggering: domestic output and per capita income have plunged; poverty and unemployment have ballooned; private investment has plummeted.
Since Hamas seized control of the Gaza Strip on June 15, governance has barely functioned. Hamas Prime Minister Ismail Haniyya in a November 4 speech expressed his dissatisfaction with the paralysis afflicting the executive, judicial, and legislative institutions, accusing the Ramallah government of responsibility.
Shortly after the split between Fatah and Hamas in June 2007, Dianna Buttu, the astute young advisor to Prime Minister Salam Fayyad, said that watching the rival factions joust for control of the Palestinian Authority (PA) was like watching bald men fight over a comb.
You are building your home. But you are having a problem with the architect, who keeps demolishing parts of the house. Sometimes he feels you did not follow the blueprints, sometimes he feels you used sub-standard materials, and sometimes, even though you are sure you followed all the instructions, he just does not like the way it turned out.
With preparations accelerating, it seems increasingly likely that the Palestinian National Liberation Movement (Fatah) will hold its Sixth General Conference during 2008. Yet given the advanced state of disintegration in which the movement finds itself, it may well be a case of too little too late. Simply put, Fatah’s very survival now hangs in the balance.
The failure of the Palestinian national movement and its shaken credibility in the public eye are giving strength to religious movements, which are expanding to fill a widening gap.