GDP of the Palestinian Authority Gaza Strip per capita is Intl $600; West Bank per capita is Intl $800.⁵² This falls within the range of $21,223 ( Israel) and $600 (Palestinian Authority - Gaza Strip) in the 6 MECC countries of the Middle East (Table 10).

The Palestinian Authority West Bank and Gaza Strip are occupied territories with a long history of conflict.⁵³ The Israel-PLO Declaration of Principles on Interim Self-Government Arrangements (the DOP), signed in Washington DC on 13 September 1993, provided for a transitional period not exceeding five years of Palestinian interim self-government in the Gaza Strip and the West Bank. Under the DOP, Israel agreed to transfer certain powers and responsibilities to the Palestinian Authority, which includes the Palestinian Legislative Council elected in January 1996, as part of the interim self-governing arrangements in the West Bank and Gaza Strip.

Table 10: GDP per capita (Intl $): 6 MECC countries of the Middle East, 2001

A transfer of powers and responsibilities for the Gaza Strip and Jericho took place pursuant to the Israel-PLO 4 May 1994 Cairo Agreement on the Gaza Strip and the Jericho Area and in additional areas of the West Bank pursuant to four separate Agreements negotiated over the years from 1995 to 1999. The DOP provided that Israel will retain responsibility during the transitional period for external and internal security and for public order of settlements and Israeli citizens.

Direct negotiations to determine the permanent status of Gaza and West Bank began in September 1999 after a three-year hiatus, but were interrupted by a second ‘intifada’ that broke out in September 2000. The resulting widespread violence in the West Bank and Gaza Strip, Israel's military response, and instability within the Palestinian Authority have continued to undermine international attempts to support negotiations for a permanent agreement.⁵⁴ In 2005, Israel has pursued its policy to re-settle Israelis currently resident in the Gaza Strip back into Israeli territory. A change of Palestinian leadership took place with the death of long time Palestinian leader Yasser Arafat on 10 November 2004. A new president, Mahmoud Abbas, was elected on 9 January 2005, since when there have been renewed negotiations towards a peaceful settlement.⁵⁵