Acknowledgments

The Development Studies Programme (DSP) is grateful to H. E. President Yasser Arafat for his opening of the conference in which The Human Development Report 1998-1999 (HDR) was announced. We would like to thank all those working in the institutions of the Palestinian Authority, in non-governmental organizations and associations, and all representatives of political parties, who were enthusiastic about offering advice, information, and data necessary for the completion of the Report. We also thank all researchers and participants in workshops conducted by the DSP.

Special thanks are due to the Ministry of Planning and International Cooperation and its head Dr. Nabil Sha’th, and to its Department of Human Development and Institution Building, and its General Director, Dr. Mohammad Gadeyeh, for coordinating the activities of the Ministerial Committee. Also appreciated are the efforts of the members of the Technical Advisory Group and the Ministerial Committee for following up on the various stages of preparing the Report.

This Report would not have been possible without the generous support of the Government of Japan, which helped establish the first Development Studies Programme in Palestine. We are also grateful to the continuing support of the United Nations Development Programme (UNDP), represented by its director Mr. Timothy Rothermel and the director of the Human Development Unit,  Mr. Sufian Musha’sha’, and UNDP senior advisor Mr. Omar Daoudi, for their efforts in developing the concepts and tools of human development in Palestine.

The DSP thanks Dr. Hanna Nasir, the President of Birzeit University, Dr. Karmella Armanyous-‘Umary, Vice-President of Administrative and Financial Affairs, and Mr. Ramzi Reehan, Vice-President of Planning and Development, for their support of the DSP. We also thank Mr. Ibrahim Al-Daqaq for his advice and constant support.

Finally, I would like to thank all my colleagues in the Development Studies Programme for their hard work on the Report—a Report we present to the Palestinian people everywhere.

Nader Izzat Sa’id

Team leader

Abstract and Recommendations

The Human Development Report for Palestine (1998-1999) presents a comprehensive vision of the basics necessary for moving Palestinian society towards a modern state. The Report aims at urging the different parties involved in the development process to make the necessary changes in order to move towards development that is based on institutions, participation, and accountability. While the Report focuses on the internal social, economic, and political structures, it also emphasizes the importance of realizing the national goals to which Palestinians aspire and ties these goals to the development and construction process. The Report draws attention to a closely related set of essential issues that make up the general framework for sustainable human development in Palestine, taking into account the limitations imposed on achieving such development. Generally, the Report focuses on the following issues and recommendations:  

·        There is a necessary link between the achievement of human development and the completion of the Palestinian national project. The desired development is emancipatory, based on the right of the Palestinian people for self-determination and the establishment of a Palestinian state, and their right for development along with other rights safeguarded by international law.

·        It is important to continue to build society’s institutions on the basis of scientific methodology, the rule of law, the constitution, the separation and balancing of powers, and the affirmation of human rights.

·        It is important that the process of institution-building is based on the recognition of ideological and social diversity and pluralism, so that all sectors of society would benefit from development.

·        Participation in development must be the basis of development activity in Palestine, for the distinctiveness of the Palestinian development situation requires the interaction and coordination between all sectors of society-- governmental, civil, and private.

·        Participatory development requires empowering the public by enlarging the choices of individuals to practice all their rights, whether in the economic field or in health and education.  Participation stipulates democratic transformation and the widening of opportunities to participate in decision making and in society’s various institutions. Most Palestinians have expressed their strong desire to participate and demanded the development of an enabling environment and mechanisms that will allow them to take part in the development process.

·        The institutions of the Palestinian National Authority have made sizable strides towards institution building. However, the absence of clear objectives, the weakness of administrative structures and job descriptions, and the existing overlap among institutions result in inefficiency and waste resources.

·        At the same time, the Palestinian private sector has not yet assumed the role expected of it in the development process. This is due to factors relating to the private sector itself, but is also connected to institutional factors relating to economic policies. These policies have not succeeded so far in creating an attractive investment environment. Moreover, the role of the Palestinian private sector must be expanded so that it fulfills its social and national responsibilities.

·        Palestinian civil society has a long history in the development process and much can be learned from its cumulative experience to formulate realistic development goals and plans. The role of Palestinian civil society must complement that of other sectors. While some civil society organizations play an activist role and focuses on human rights issues, there is a need to activate political parties and professional associations and unions, which could play an important role in the development process. 

·        A bold step must be taken in order to establish suitable and effective mechanisms that integrate marginalized groups in the development process. At the time being, neither do these groups benefit from the fruits of development, nor do their capabilities get integrated in the development process. Therefore, it is important to eradicate all forms of discrimination against women and to integrate them, along with other social groups, in the development process. Also the strategic interests of Palestinian refugees and residents of camps must be taken into consideration in planning for development.

·        There is a possibility of creating a balance between the external and internal funding of development. Realistic self-reliance would have a positive impact on the general Palestinian situation and would safeguard the rights of future generations.

·        Despite Palestinian society’s important achievements, there are real concerns about the possibility of decline in the development situation, especially regarding human development indicators. Therefore, a balanced effort must be directed towards economic and social policies, with a focus on adequately providing for education, health, and other social programs.

·       A development vision for Palestine will direct and unify efforts towards desired goals. Such a vision must be based on the right of the Palestinian people for political self-determination, must allow for effective participation of individuals and groups in the development process, and must recognize the importance of a holistic approach built on equity, justice, and responsibility towards future generations. It is a development vision that begins and ends with human beings.

 1.General Framework for Development in Palestine

 Reaching integrated and sustainable human development requires people’s participation in the development process. In the Palestinian case, now more than ever, there is a great need to develop the concept of participation, to expand people’s capabilities, to raise the level of their motivation and productivity, and to activate their role in order to make necessary changes on the national level in all political, economic, and social fields.

The development process is realized and strengthened under a political, social, economic, and administrative system that allows and encourages individuals and groups to participate by creating an empowering environment, one that enlarges their choices by 1) providing them with real opportunities in life and by 2) empowering them so they can invest in these opportunities as best as possible. Thus, they participate in developing their society and they reap the benefits of this development. Participation implies that people take active part in the economic, social, and political processes which affect them and future generations.

For this purpose, and to make the Palestinian individual the target of development, it is necessary to begin a balanced social construction, one that responds to the needs of the transitional stage through which the society is currently living. Of paramount importance is establishing the elements necessary for the Palestinian people to achieve their general national goals, and freeing individuals from restrictions that limit their political, economic, and social opportunities.

It is important to remember that comprehensive development is achieved under an effective interaction between human resources and social institutions. These institutions include those of the Palestinian National Authority (PNA), civil society, and the private sector. Integrating individuals in the development process requires creating a balance between the three powers (executive, legislative, and judicial) based on institutions, thus allowing for a productive and efficient partnership among various sectors of society.

 Human Development Report: A Report for the Palestinian State

The Palestinian Human Development Report (the Report) focuses on the reciprocal relation between people and the structural-institutional opportunities that allow for effective participation in the development process. The Report analyzes the nature of the period the Palestinian people in the West Bank and the Gaza Strip are living through,  focusing on the processes and cumulative experiences at this time of reconstruction. Now, Palestinians are moving closer towards the goal of building a Palestinian State and towards a strong, vibrant development process. Therefore, it has been necessary to present an analysis of the three corner stones of society: PNA institutions, the private sector, and civil society organizations. The report looks forward by presenting a set of recommendations as the basis for a Palestinian development vision.

Generally, the current Report seeks to urge the various sides of the development process in Palestine to make the necessary changes to move ahead toward a development environment based on institutions, participation, and accountability. The analyses and recommendations presented in this Report stem from the recognition of the importance of the concept of human development. This concept calls for enlarging people’s choices and expanding their capabilities by investing in social capital, so that the needs of people are met now without compromising the rights of future generations. Moreover, this concept reinforces the connection between motivation and productivity and creates a balanced environment that allows large sectors of society to work together to improve the state of development in Palestine.

Working on preparing the Report reflects to a large extent the increasing cooperation among academic institutions, PNA institutions, non-governmental organizations, and the private sector. The Report seeks to objectively present the views of all participants in the development process. As an academic and policy-oriented research, the Report relies on objective analyses of realities and possibilities, and uses scientific evidence to support its claims and statements.

The Report relied mainly on the official data provided by the Palestinian Central Bureau of Statistics. In addition, it benefited from several studies and surveys conducted by the DSP. A large number of committees and experts supervised the preparation of the Report. Among these committees is the Technical Advisory Group, which consists of twenty-two specialists in different fields. The Ministerial Committee, which represents eighteen Palestinian ministries, reviewed the report at different stages of its preparation. Various research groups were established to conduct special studies for the Report.

  Enlarging Choices: A Broader Vision

An emancipatory concept of human development is not limited to the right to self-determination and to political independence. It also involves, as a necessary condition, the removal of all types of local oppression and domination. In other words, human development means generating democratic structures on political, social, and economic levels. Therefore, it includes the right to freedom of expression, opinion, and organization, and the right to institutionalized equality and justice. This concept of human development stipulates a new kind of economic relations, as well as a new kind of relationship between the state and the society as a whole.

  Participation as a Strategy for Human Development

Achieving human development requires people’s wide participation in the development process. This participation can take many forms, such as people’s making decisions that impact their lives or their environment, their creative contribution to the development of their society, or their ability to reach markets, own resources, and benefit from development and public services. The concept of “participatory development” means the creation of an empowering process that enables people to assume responsibility for designing projects and initiatives and for implementing and sustaining them independently. It is not surprising that the UNDP’s Human Development Report (1993) saw a correlation between participation and democratic transformation on the one hand, and the emergence of non-governmental organizations all over the world, on the other. Most importantly, people’s need for and desire to participate in development are often thwarted by systematic imperatives such as inflexible institutions, disabling environments, and discriminatory legislation.

  Development Environment in Palestine

Since the issuing of the Palestinian Human Development Profile (1996-1997, no noticeable changes have taken place in the development environment in the country. However, it seems that the “transitional” nature of the Palestinian-Israeli agreements and their consequences are assuming permanent features.

 2. Human Development Indicators

Despite the many reservations mentioned by the Report concerning the use of human development indicators, these indicators can still be useful for purposes of self-comparison over time. Some years from now, the same index can show the degree to which Palestinian society was able to break away from the restrictions imposed on its development practices and its ability to translate the available resources into plans that raise people’s economic level, their educational attainment, and their state of health. The value of the human development index (0.694) shows that Palestine is located at a medium development level (the average human development index for countries that are considered medium by human development standards is (0.662)). Palestine ranks number 104 among 175 countries.

The value index points to a set of related processes and results:

the possibility of transferring limited economic resources into human resources, especially in the fields of health and education (particularly before the establishment of the PNA).

The great significance of civil society’s role and of people’s participation as a whole in bringing about development and in continuing the resistance against the consequences of the Israeli occupation.

The importance of remittances in providing a shield against drastic deterioration.

The importance of focusing on social policies in the fields of health, education, and poverty-alleviation, and on integrating various social groups in the development process.

As to the low ranking of Palestinian society compared to other countries, there are several factors that need to be mentioned:

Continuing Israeli policies which, for political and economic reasons, aim at keeping the Palestinian economy under Israeli control.

Continuing reliance on international aid as a main source of funding the development process.

For reasons that will be explained later, spending on state institutions consumes a large part of the budget without leading to clear development results.

Preoccupation with infrastructure projects, where economic benefits appear in the long term and only if there is a suitable investment environment.

The slight increase in the total GDP resulted from increase in prices and was accompanied by a disproportionate population growth, which led to a decrease in the real per capita GDP.

The important achievements that have been realized in the fields of education and health are vulnerable if investment in human development declines.

 Gender-Related Development Index (GDI)

The gender-related human development index adjusts the means of each country’s achievement concerning the indicators of human development--average real GDP per capita, life expectancy at birth, and educational attainment--to show the gap between women and men. It is clear from the estimated data that the index for Palestine (0.637) ranks 97 (among 144 countries). In absolute measurement and in comparison to other Arab countries, Palestine ranks after Kuwait, Bahrain, Qatar, United Arab Emirates, Libya, Lebanon, Saudi Arabia, Tunisia, Algeria, and Oman. Egypt, Morocco, Iraq, Yemen, and Sudan are ranked higher. Syria is similarly ranked. It is worth noting that despite the persistent and obvious gap between women and men, the size of this gap is smaller in Palestine than in many other Arab countries.

As to the Gender Empowerment Measure (which measures the empowerment of men and women in the economic and political fields), the index for Palestine is (0.291). Palestine is ranked lower than Kuwait, Tunisia, and Syria, but higher than the United Arab Emirates, Algeria, Jordan, Sudan, Mauritania, and is close to Egypt and Morocco. As to the other Arab countries, they do not provide data in this area either because of the absence of a regime that allows women to participate in public life or for lack of official data. (It is worth mentioning that the Palestinian Central Bureau of Statistics has a women and men unit in).

The above information shows that the presence or lack of economic resources is not a decisive factor in guaranteeing a higher degree of equality between men and women. For there are both rich countries and poor countries that have achieved a high degree of equality, while there are other rich countries with a wide gap between men and women. This means that balanced and well-targeted development policies within the existing economic limits could help achieve more equity in society. Needless to say, there is still a long way to go to achieve real equality between men and women in the various fields mentioned above. Most importantly, without a collective, high-level political will and enlightened measures to achieve equality, there is always the danger of set backs regarding women’s rights.

Concerns about Decline:

There are real concerns about a possible decline in human development in Palestine. Such concerns stem from the insufficiency and instability of funding, the weak administrative experience of some officials, the inefficiency of evaluation and monitoring, and the overlapping of responsibilities. These concerns are reflected in the way the Palestinians appraise themselves and their living conditions during the past years.

·       Economic Conditions: % 44 of Palestinians felt that their standards of living have not changed since the establishment of the PNA, while % 41 felt their conditions have deteriorated. On the other hand, % 14 felt their conditions have improved.

·       Educational Conditions: % 35 believed they cannot financially afford adequate education for them or their children, while % 29 maintained they can afford such education. % 36 described their ability in this regard as “fair”. % 64 assessed educational services positively, % 27 said the services were “fair”, while % 9 described them as bad or below average.

·        Health Conditions: The state of health grows increasingly complicated in terms of health services. A third of those surveyed maintained that they couldn’t financially afford adequate health care in case of their illness or the illness of a family member, while % 36 described their ability as “fair”. At the same time,     % 39 gave a positive assessment of health services, % 26 gave a negative assessment, while % 36 considered them “fair”.

3. PNA Institutions and their Role in Development

The PNA is the first national authority established on Palestinian land this century. From the beginning, the PNA has faced a number of challenges relating to its powers, performance, work parameters, and the relation between the political and developmental in its programs. This chapter focuses on the issue of institution- building and the main challenges and achievements in the transformation that has taken place towards state institutions. The chapter also considers the possibilities of planning this transformation process. Without neglecting the importance of the national issue and its relevance to development, this part of the Report focuses on PNA institutions and on the national authority’s role in development.

 Institutionalization of the PNA:

The PNA was established as a result of the Oslo Agreements, which have not been fully implemented. Consequently, the PNA has limited control of land, natural resources, and even human resources. Despite these limitations, and since its establishment in mid 1994, many steps have been taken to build institutions. Among the most important achievements in this regard are:

·        Establishing the foundation of an infrastructure for PNA executive institutions, embodied in ministries and authorities of both general and specialized nature. These institutions were supplied with staff, buildings, equipment, communication means, and transportation.

·        The Legislative Council was formed after being elected by Palestinians at the beginning of 1996. After an investigative and experimental period, the Council has assumed its legislative and monitoring role.

·        There is an interest in institutionalizing the judicial system and guaranteeing its independence. This interest, however, has not been clearly delineated or translated into practice yet. In addition, the building of the security apparatuses has begun to take shape, and as a result the overlapping in the work of these apparatuses has been reduced.

·        Structures and administrative hierarchies for public institutions and departments, including job descriptions, were established.  There are also preliminary attempts to discover the areas of duplication and conflict in the work of public institutions in order to arrive at better coordination in and among them. 

·        A great effort has been expended towards the levying and collection of taxes and towards establishing unified standards to control the financial regulations and procedures in PNA’s apparatuses and divisions. As a result, the PNA’s income from taxes has equaled or surpassed countries at similar development level.

·        Some Ministries and public institutions drew up work plans that envision their activities for the coming years.

·        Several Ministries offer services to the public similar to those offered by other governments to their citizens. Such services are in the fields of education and health, along with the issuing of passports and other official document, the offering of both monetary and non-monetary assistance to needy families, and the implementing of many vital infrastructure projects.

·        International sources of funding were established and a network of international relations were built, which have contributed to funding the development process. The international funds were used in ways that do not significantly differ from those of other countries receiving international aid.

·        The relationship of the PNA and the private sector is still being debated. A large number of procedures and laws have been drafted to regulate this relationship. Their implementation, however, is still in the early stages.

·        A debate continues about the relationship between the authority and civil society with its non-governmental organizations, political parties, and unions. Laws to regulate this relationship have been drafted and their implementation is expected to take place in the near future.

 The Absence of a Development Vision

The absence of a PNA unified and empowering development vision leads to confusion and conflict within its institutions, and presents it with challenges that need to be dealt with. This situation hinders the PNA from assuming its leadership role in development. Currently, each ministry and public institution continues to formulate its own development policies according to a limited vision and without referring to a comprehensive nationally embraced one. As a result, public employees are demoralized because they feel excluded from the decision-making process; work for them becomes a matter of just punching the time clock.

It is important that the PNA develops a clear vision of the nature of the society and state it seeks to build.  This vision should correspond to national aspirations and should reflect a national consensus based on participation and pluralism. It should also correspond to the concepts of sustainable human development. In other words, combining efforts towards national goals with the tasks of building a modern democratic state and a development environment has become a necessity. And while the task is not limited to the PNA alone—for it is the responsibility of all political and civil groups in society—there is no escaping the fact that the PNA must have a vision of its role in society and must bear all its leadership responsibilities.

  Visions, Goals, and Structures

A significant number of government institutions employees believe that there are still no clear policies or plans for their institutions. A large percentage of these employees do not feel they have job security and do not find their work conditions adequate. The majority maintains that they do not participate in decision making. According to a survey conducted by the DSP, the largest number of directors and general directors described the relationship inside their ministries as undemocratic. There are also real concerns about coordination of expertise whether within the individual ministry or among ministries in the West Bank and the Gaza Strip.

   Policies Relating to PNA Institutions:

 1)  The existing situation requires a reconsideration of the process of government institutionalization. This institutionalization must meet national priorities, both political and developmental, and must reflect the distribution of available and possible resources.

 2)  Along with decentralization, there must be a reorganization of the government’s general administrations not only according to their tasks and human resources (qualification, skills, and training), but also according to a clear vision of their activities. These activities should aim, first of all, at serving the public.

 3)  It is not expected of PNA institutions to become similar to      non-governmental organizations, either in the way they get funds, the kinds of services they offer, or their style of work. Such overlapping wastes the efforts of these institutions and distracts them from their original goals, which are to create an empowering environment, to formulate policies and strategies, and to provide basic services.

4)    To carry out these tasks, mechanisms must be found to interact with groups targeted by the various Ministries. The type of relation existing between institutions and their constituencies is the best measure of these institutions’ efficiency and performance in the development process—a performance that can always be improved.

5)     It is time to rationalize the structures of public institutions in a way that enable them to expand people’s present and future options and capabilities. For this to happen, funds and efforts should be directed to health and education, and to social and legal infrastructure. Moreover, the PNA role in these areas should be delineated in coordination with other social groups and in accordance with available resources.

6)    The need to formulate a development strategy for the coming critical years means donor countries must respect Palestinian development priorities. At the same time, it is certainly hard to imagine a public institutional structure without a clear vision of its priorities for development on the internal level.

4. Economic Policies and Human Development

Economic growth is a main force behind sustainable human development. Without it, it is difficult to provide the resources necessary for funding development in various areas. In fact, international and local research emphasizes that this growth must be just and compassionate and that all sectors of society must participate in both making it and enjoying its fruits. Moreover, the concept of human development is no longer limited to an increase in the GDP, but also includes the quality of life.

This chapter presents an analysis of the most important issues relating to economic policies in Palestine, particularly employment. Also discussed is the issue of investment and the relation between the public and private sectors.

   Market Imperfections:

The Israeli policies and practices in the Palestinian territories have led to the creation of structural imperfections in the economic, political, and social constitution of these areas. The impact of the Israeli occupation on the Palestinian economy in particular was most severe. The Israeli policy drained the economic resources of the Palestinian territories and turned the latter into a market for Israeli products and a source for cheap labor.

This situation has resulted in structural imperfections in the Palestinian economy. The most important of these imperfection are: severe dependency on the Israeli economy (more than  % 90 of imports came from Israel and % 80 of Palestinian exports went to Israel); the extreme weakness of the material and social infrastructure; and the weakness of the productive base since the contribution of the industrial sector did not exceed   % 10 of the local product. This period was marked by the almost complete absence of the public sector.

Absence of a Self-Growth Mechanism

Economic activities in Palestine are taking place without comprehensive and clear economic policies and in the absence of self-sustaining mechanisms. In addition to dependency on the Israeli economy and weak control of natural and human resources, the lack of a suitable economic structure in the Palestinian Territories, the separation between the various geographic areas, and the weakness of laws, legislation, and legal procedures make economic growth poor and unstable.

Moreover, the absence of clearly-delineated development visions regarding the relation between the public and private sectors puts the distribution of tasks and the implementation of laws on shaky grounds, which creates monopolies and self-interested alliances among investors and those with political clout. All this leads to the marginalization of vital social groups such as women, the poor, and others. In addition, the current market mechanism, which is not based on specific regulations, makes the possibility of coming out with comprehensive policies a complicated matter. Consequently, environmental and human rights violations are committed by the private sector, and the social welfare safety nets is put under heavy pressure, making it difficult to offer continuous and adequate protection for the victims of uneven economic policies.

 Relation between the Public and the Private Sectors:

The Palestinian strategy is based on the premise that the private sector leads the Palestinian development process and that the public sector plays the role of preparing a development environment, thus complementing and regulating the role of the private sector. It is certain that such a relation must be defined through constant debate and through trial and error. Moreover, this relation cannot be viewed from an idealistic point of view. For it is unacceptable that the private sector should dominate the state, and it is also unacceptable that political authority should be misused to gain monopolies that endanger society.

Unfortunately, the current “strategy” is still not clear in practice. The role of the public sector is not completely formed, which makes the relation between the two sectors ineffective. At this particular stage, the PNA needs to assume a leading and active role in development. This role is not limited to the economic field, but includes the general political situation, human rights, and the legal and procedural environment. This is in addition to providing products and essential services such as water, electricity, sanitation, basic education, health care, infrastructure, social welfare, and others--all of which impact the individual’s quality of life.

Focusing on social investment must be emphasized. Social investment is measured by the improvement in social capital, which includes investments in various economic fields and in different public services (education, health, culture, and social security), in addition to the improvement of social and political institutions, of social relations, and of the general legal situation.

5. Palestinian Civil Society Organizations

Development activity in Palestine has been historically characterized by dependence on the initiatives of civil society organizations. Up until the establishment of the PNA on parts of Palestinian land, these civil initiatives conflicted with existing governments in objectives, policies, and work methods. Usually, the aim of these initiatives was to effect a “development” that contributes to the resistance of the Israeli occupation and to achieve an adequate standard of living for the Palestinians especially during the Intifada. And since consecutive governments played a limited role (and in many cases a destructive one) in providing social services to the population and in investing in human capital, civil organizations filled up an important part of the gap created by these systematic practices.

  Palestinian Civil Society Organizations: Varied Activities and Multiple Visions

The currently existing civil society organizations are varied in both activity and vision. Generally speaking, civil society organizations include charitable societies,  organizations with an empowering and development vision, political parties and groups, unions and associations, civil rights and advocacy organizations, and institutions concerned with sports, culture, research, and the arts. 

  Non-Governmental Organizations and the PNA

The establishment of a Palestinian National Authority for the first time on Palestinian land has made it necessary to re-evaluate the experience of Palestinian civil society and to look at it in the context of the new political, economic, and legal variables resulting from the peace agreements between the Palestinians and Israel. Generally speaking, the relationship between PNA institutions and non-governmental organizations is characterized by cooperation and coordination at times, and by competition and conflict at others. While a number of non-governmental organizations have become an inseparable part of  PNA institutions in terms of funding, administration, and type of programmes, many others have remained, to a large extent, independent of the PNA, which has generated a kind of “competition” between the latter and these organizations. Outside funding is at the center of this competition despite the fact that non-governmental organizations receive their funds from their international counterparts, not from donors. It is also worth remembering that the relationship between local and international non-governmental organizations goes beyond funds to include concern for common issues, especially human rights, gender, the environment, and reproductive health.  

   Conclusions about civil society organizations

 1.  Sustainable human development of Palestinian society requires the maximum activation of its civil society, especially in light of limited natural resources. The short history of the PNA as a governmental institution gives the Palestinians the opportunity to learn from the experience of other countries in order to establish an institutional structure based on true partnership.

2.    Civil society organizations should be looked at as dynamic social units or formations existing in a changing context. Not surprisingly, a large number of non-governmental organizations in the West Bank and the Gaza Strip were formed in the eighties and nineties in response to the changing situation in these areas and to national, regional, and international variables. Therefore, it is important to avoid lumping these organizations together and simplifying their relation with their constituencies. 

 3.  The fact that there are different types of NGOs means that there are different kinds of relations possible between these NGOs and other civil organizations. It is difficult to establish coordination and cooperation among NGOs that do not have similar vision, objectives, and targets, while it is easier to envision a relationship among NGOs working in the same field or among political organizations close in their ideologies and attitudes.

4.      The call for coordination and cooperation between civil organizations and PNA institutions is a necessity, especially to complete reconstruction and to reach a unified development vision. This is particularly true of organizations working in the fields of health, education, agriculture, social welfare, and vocational training. However, it does not apply in the same way to other civil society organizations, such as human rights organizations, political parties of the opposition, and groups, unions and associations representing social forces whose interests in certain circumstances may conflict with those of the PNA or with the private sector (despite the fact that all these groups have the same general national concerns). 

 5.  The nature of the relation that could exist between an NGO or a political organization on the one hand, and the authority or the state on the other differs according to the specialization of the latter. For example, the relation with the Executive Authority is different from the relation with legislative or judicial authorities. Thus the relation of some NGOs (represented by the NGOs’ Network) with the Legislative Council differs from their relation with PNA Ministries. Similarly, the relation of the political parties with the Legislative Council differs from their relation with the leadership of the Executive Authority or with its security apparatuses. Needless to say that the existence of an independent judiciary, as opposed to one connected to the Executive Authority, would give wider protection to civil society organizations.

6.    Compared to other countries, and despite the setback it has experienced in the last few years, Palestinian civil society is one based on institutions. There are indicators that point to this culture of institutions. One of these indicators is the number of civil society organizations. The increasing number of these organizations shows that there are more and more groups interested in effecting change through institutionalized and sustainable civil action. Of course this work is made possible through internal funding. Another indicator is the size of NGOs. The increase in size can be attributed to institutionalization, which generally encourages organizations to grow. True, institutionalization is not the only reason behind the growth of NGOs; it is, nevertheless, a necessary one.

6. Towards a Development Vision in the West Bank and the Gaza Strip

One common thread in the previous analyses of the administration of development in Palestine could be summarized as the absence of a development vision that guides and unifies efforts towards the desired goals. This lack of vision is due to the newness of the Palestinian experience of integrating political authority, civil society, and economic market. Moreover, dramatic political and social changes result in a loss of direction. Hence the importance of opening a democratic debate—one that would help society invest in human and material resources and strike a balance between different development directions and interests. This way we can have a society that uses the maximum of its capacities and at the same time continues to respect ideological, political, and social diversity.

  The Palestinian Context

Among the most important questions raised concerning development in Palestine is one about the relation between the political (national) and the developmental. To what extent Palestinian society is empowered to make choices on a developmental level—which is a base and a condition for any development—when its right for self-determination is denied. The right for self-determination in this case includes two basic elements: political self-determination for the Palestinian people and effective participation of the Palestinian people in the development process.

The Palestinian Human Development Profile offered a definition of the concept of development: “This concept is based on the recognition of the importance of development, which includes all aspects of life.  This is a comprehensive vision that asserts the individual’s right to sustainable development, based on equity and justice. Hence the need to formulate development strategies that has the human being as both their starting point and their end.” When the conditions of development are made available, this definition would be the basis of development in Palestine. It puts people at the heart of the development process, respects their humanity, and looks to them as complete partners. It also corresponds to international law and effectively employs pluralism and democracy in the development process.

A Palestinian perspective in relation to the development process could be summarized as follows:

First: Factors relating to the development environment

The report asserts that there are central factors shaping the development environment in Palestine. The policies that follow from these factors continue to determine the possibilities and content of sustainable human development in Palestine.

1)    The Israeli occupation: no other factor is more important than the impact of the continuation of the occupation on the state of human development in Palestine. Therefore, Palestinian development activity in all its aspects must be emancipatory, balancing construction and liberation.

2)    The role of PNA institutions: perhaps the most important task facing the PNA (particularly its political branch) is re-organizing the relationship with the Israeli side to guarantee more freedom for the Palestinian society so that it can have more control over its development process. The PNA is still looking for suitable mechanisms through which it would assume its leadership role in the development process. This leadership must rely on wide participation and on social justice.

3)    Donor countries: despite increasing attempts towards self-reliant development, the donor countries are still the main source of development funding. This funding aims at supporting the building of PNA institutions and a Palestinian economy based the free market and the private sector. The funding issue continues to raise important concerns: first, the role of international aid in reinforcing a state of dependency; second, the sustainability of funding; third, the real impact of development since part of the funds makes its way back to the donor countries themselves; and finally, the current tendency of giving loans, which burdens future generations with debt. 

 Two: Public Participation in Development

 1)  It is not possible to talk about sustainable development without widening democratic practices. And it is not possible to talk about human development that comes from the top.  Effective and sustainable participation by the people guarantees sustainability. The widening of democratic practices means rational exchange between the leaders and the public to create more fruitful development.

2)    Certainly, it is the right of the Palestinian people to aspire to the level of development achieved by the North; however, for effective development it is important to be realistic by balancing both possibilities and capacities.

3)    The responsibility of encouraging people’s participation does not lie with the government alone, but extends to civil society organizations and to the institutions of the private sector, which could become an integral part of the development process.

Three: Marginalized Groups and sustainable human development

Related to the above-mentioned concept of participation, a bold step must be taken to reach comprehensive and sustainable human development. This leap is basically tied to establishing suitable and effective mechanisms that integrate essential groups in the development process. These groups not only have a right to participate in development, but their participation is necessary and should over-ride any existing ideological disagreements. The Palestinian society and its development leadership could set a successful example of their ability to integrate all social groups in the development process, so that all people become the producers of development as well as its beneficiaries.

Four: Institution-building and democracy

There is almost a consensus among the public, the PNA, civil society organizations, and the private sector about the importance of rational approaches to the building of institutions. Sustainable human development must be based on cooperation and partnership and must be regulated by law. The PNA responded to the various reports issued by local and international organizations and formed specialized committees to deal with the problems uncovered by these reports. But despite this concern on the part of the PNA, real institution-building is still in its beginnings and more needs to be done to activate the available resources and to improve the Palestinian situation on all political and developmental levels. Institution-building is connected to legislation and to the separation and balancing of powers. Therefore, having legislation that safeguards the interests of different groups in society is a real necessity, and the work that has been done to improve the judicial system should continue in order to create an effective judiciary respected by all members of society. 

Fifth: Civil society organizations

The vital role played by the Palestinian civil society contributes to bringing about balanced and sustainable human development. Allowing civil society adequate space would necessarily lead to a development that includes all sectors of society. Political parties too have an important role in bringing about the democracy needed for development. Drafting and implementing laws relating to parties, NGOs, workers’ rights, and the integration of the disabled are clear signs of the kind of society that is currently being built in Palestine.

Six: The private sector

The private sector remains the main dynamo behind activating economic development in Palestine. To do its job well, it needs the investment environment that makes its participation possible and effective. In this context, the law, the public sector, and private companies and monopolies all have a role to play. Public interest requires that the Palestinian market be open to all Palestinian and Arab investors, without bureaucratic restrictions that make their participation nearly impossible. Investors need a reasonable degree of security safeguarded by institutionalized and legalized practices. At the same time, the private sector cannot expect the literal implementation of the same market mechanisms employed in other countries. What is needed, then, is a kind of creative investment thinking to deal with the limitations imposed on the Palestinian economy. But the responsibility of the private sector towards reinforcing and building PNA and civil society institutions is usually larger than that in other countries.

Seven: Indicators of human development

Despite the important achievements in the field of human development in Palestine during the last decades and since the establishment of the PNA, there are concerns about the possibilities of decline in development and the impact of such decline on various aspects of life in the areas of health, education, and social welfare. Arriving at reasonable economic growth will contribute to providing resources to support different human sectors. Constructing a suitable, sustainable, and developmental infrastructure would lighten society’s future burden and would reduce the possibilities of decline. The human development index suggested by the UNDP remains insufficient for measuring development in Palestine. However, paying attention to the elements of the indicator in a balanced way and putting aside funds to support people’s participation in the development process will necessarily move society as a whole in a positive direction. This direction will bring about participation in both the making of development and in benefiting from it.