By Ishac Diwan, Radwan A. Shaban

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Extra resources for Development Under Adversity: The Palestinian Economy in Transition

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Bibliographical Note: This chapter is based on the background papers of Shaban (1997), Al-Qudsi and Shaban (1996), Arnon (1996), and Shaban (1996). Other references include CPRS (1997), Gotlieb (1996), PCBS (1996c), Shaban and Al-Botmeh (1995), UNSCO (1996a), and World Bank (1995b). " By any measure, the changes worked out between the two parties in the Declaration of Principles (Oslo Agreement) and subsequent agreements have been both historic and far-reaching. Israel has withdrawn its military forces from most of Gaza Strip and from major population centers in the West Bank, with the exception of East Jerusalem and parts of Hebron.

Final status negotiations were to restart in March 1997. Furthermore, the Oslo II timetable for additional Israeli redeployments was relaxed considerably. " This was a delay of approximately one year. Israel argued that the scope of such redeployments should be at its sole discretion, a view apparently endorsed by the US. The Palestinian position is that the specifics of redeployment are to be agreed between the two parties and not determined unilaterally by Israel. Some argued that the Hebron Protocol demonstrated the commitment of the Netanyahu government to the Oslo process.

Israeli-Palestinian Interim Agreement: Oslo II These measures set the stage for a political landmark-the Israeli-Palestinian Interim Agreement on the West Bank and Gaza Strip (Oslo II Agreement, Interim Agreement, or Taba Agreement), signed in Washington in September 1995. The lengthy and detailed agreement confirmed the process of expanding the territorial and functional control of the PA. It contained a number of core elements related to redeployment, transfer of jurisdictional and functional control, governance, water rights, taxation, and coordinating mechanisms.

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