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National Early Recovery and Reconstruction Plan for Gaza 2014-2017_FINAL...

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15<br />

1.2 The <strong>National</strong> Consensus Government: Priority Agenda<br />

The recent Israeli assault started five weeks after the <strong>for</strong>mation of a <strong>National</strong> Consensus Government – the first government to<br />

administer in both the West Bank <strong>and</strong> <strong>Gaza</strong> since 2007. Formed as a result of President Mahmoud Abbas’ successful ef<strong>for</strong>ts to<br />

achieve national reconciliation, this Government aims to institutionally, legally, economically, <strong>and</strong> socially reintegrate <strong>Gaza</strong> <strong>and</strong> the<br />

West Bank, as a step towards achieving the aim of an independent <strong>and</strong> vibrant Palestinian state, with East Jerusalem as its capital.<br />

Upon its inception on June 2, <strong>2014</strong>, the <strong>National</strong> Consensus Government was met with strong popular Palestinian support <strong>and</strong><br />

welcomed by key international stakeholders, including all the Quartet members: the United States, the European Union, Russia<br />

<strong>and</strong> the United Nations.<br />

However, Israel expressed immediate <strong>and</strong> continued opposition to the <strong>National</strong> Consensus Government. It significantly limited<br />

the new Government’s ability to effectively oversee the rehabilitation <strong>and</strong> integration of the ministries <strong>and</strong> national institutions,<br />

including by preventing the movement of Government members between the West Bank <strong>and</strong> <strong>Gaza</strong>.<br />

1.2.1 Institutional <strong>and</strong> Legal Agenda<br />

Coupled with external challenges caused by the Israeli occupation, the new Government must address complex internal<br />

governance tasks, including the complex harmonization of national institutions, civil services, <strong>and</strong> legal systems. Following seven<br />

years of political separation, the full harmonization of Government institutions, civil service, <strong>and</strong> legal systems between <strong>Gaza</strong> <strong>and</strong><br />

West Bank is a historical opportunity that will take time to realize. The overall objective of the Government is to reunite the body<br />

politic <strong>and</strong> strengthen state institutions through the implementation of the reconciliation agreement, with the aim of ensuring<br />

a unified Palestinian government effectively governing both <strong>Gaza</strong> <strong>and</strong> the West Bank.<br />

At the center of the ef<strong>for</strong>t to reunify <strong>and</strong> harmonize institutions is the issue of pre-2007 employees <strong>and</strong> the post-2007 staff<br />

engaged by the then de facto authority in <strong>Gaza</strong>. This issue has to be addressed in the short-term while ensuring that the<br />

Government is able to function in <strong>Gaza</strong> <strong>and</strong> carry out recovery <strong>and</strong> reconstruction ef<strong>for</strong>ts, <strong>and</strong> without undermining the<br />

introducing of a plan <strong>for</strong> the rationalization of civil service in <strong>Gaza</strong> <strong>and</strong> capacity development in the medium-long term. The<br />

resolution of these issues is further complicated by external legal challenges <strong>and</strong> the dire economic situation, in particular the<br />

inability of the economy to generate jobs under current circumstances.<br />

Establishing <strong>and</strong> maintaining law <strong>and</strong> order under the Government authority requires arrangements in the immediate <strong>and</strong><br />

short-term <strong>for</strong> controlling the border crossings; harmonizing the police <strong>for</strong>ce; <strong>and</strong> increasing support to civil defense in response<br />

to early recovery ef<strong>for</strong>ts. In the medium-long term, security sector re<strong>for</strong>m is essential to ensure the integration of the security<br />

<strong>for</strong>ces under a clear comm<strong>and</strong> structure, along with capacity-building.<br />

The third major priority is the reintroduction of a unified justice system in <strong>Gaza</strong> by addressing the status of applicable laws, effect<br />

of legal decisions, <strong>and</strong> reunification of the court system, while continuing the process that was begun prior to 2007 of unifying<br />

the different laws, resulting from historic separation <strong>and</strong> different legal systems between the West Bank <strong>and</strong> <strong>Gaza</strong>.<br />

1.2.2 Economic <strong>and</strong> Fiscal Agenda<br />

The reversal of long term economic deterioration in Palestine, but especially in <strong>Gaza</strong>, is critical. The Palestinian economy has been<br />

strangled by ongoing restrictions <strong>and</strong> a highly uncertain political outlook. This has been felt even more acutely in recent years as<br />

a result of falling <strong>for</strong>eign aid levels. Growth fell to 1.9 percent in 2013 <strong>and</strong> is <strong>for</strong>ecast to be negligible in <strong>2014</strong>. Since this is below<br />

the average population growth of 3 percent, Palestinians are seeing their GDP per capita decline.<br />

This economic picture is even more startling when looking at <strong>Gaza</strong>, where repeated military assaults have time <strong>and</strong> again<br />

destroyed economic infrastructure <strong>and</strong> paralyzed economic activity. The impact has been compounded by the severe economic<br />

shock produced by the seven-year blockade on exports <strong>and</strong> imports, which has prevented movement of goods <strong>and</strong> people

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