top of pageBackground: The Israel-PLO Declaration of Principles on Interim Self-Government Arrangements (the DOP) signed in Washington 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. 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 the Israel-PLO 28 September 1995 Interim Agreement the Israel-PLO 15 January 1997 Protocol Concerning Redeployment in Hebron the Israel-PLO 23 October 1998 Wye River Memorandum and the 4 September 1999 Sharm el-Sheikh Agreement. The DOP provides that Israel will retain responsibility during the transitional period for external security and for internal security and public order of settlements and Israeli citizens. Direct negotiations to determine the permanent status of Gaza and West Bank had begun in September 1999 after a three-year hiatus but have been derailed by a second intifadah 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 continue to undermine progress toward a permanent agreement.
AreaTotal: 5,860 km²
Note: includes West Bank, Latrun Salient, and the northwest quarter of the Dead Sea, but excludes Mt. Scopus; East Jerusalem and Jerusalem No Man's Land are also included only as a means of depicting the entire area occupied by Israel in 1967
Water: 220 km²
Land: 5,640 km²
Comparative: slightly smaller than Delaware
Climate: temperate; temperature and precipitation vary with altitude warm to hot summers cool to mild winters
Terrain: mostly rugged dissected upland some vegetation in west but barren in east
GeographyNote: landlocked; highlands are main recharge area for Israel's coastal aquifers; there are 242 Israeli settlements and civilian land use sites in the West Bank and 29 in East Jerusalem (February 2002 est.)
top of pageLanguages: Arabic Hebrew (spoken by Israeli settlers and many Palestinians) English (widely understood)
Religions: Muslim 75% (predominantly Sunni) Jewish 17% Christian and other 8%
Birth rate: 34.07 births/1000 population (2003 est.)
Death rate: 4.16 deaths/1000 population (2003 est.)
top of pagetop of pageEconomy overview: Real per capita GDP for the West Bank and Gaza Strip (WBGS) declined by about one-third between 1992 and 1996 due to the combined effect of falling aggregate incomes and rapid population growth. The downturn in economic activity was largely the result of Israeli closure policies - the imposition of border closures in response to security incidents in Israel - which disrupted labor and commodity market relationships between Israel and the WBGS. The most serious social effect of this downturn was rising unemployment; unemployment in the WBGS during the 1980s was generally under 5%; by 1995 it had risen to over 20%. Israel's use of comprehensive closures during the next five years decreased and in 1998 Israel implemented new policies to reduce the impact of closures and other security procedures on the movement of Palestinian goods and labor. These changes fueled an almost three-year-long economic recovery in the West Bank and Gaza Strip; real GDP grew by 5% in 1998 and 6% in 1999. Recovery was upended in the last quarter of 2000 with the outbreak of violence which triggered tight Israeli closures of Palestinian self-rule areas and severely disrupted trade and labor movements. In 2001 and even more severely in 2002 Israeli military measures in Palestinian Authority areas have resulted in the destruction of much capital plant and administrative structure widespread business closures and a sharp drop in GDP. Another major loss has been the decline in earnings of Palestinian workers in Israel. International aid of $2 billion in 2001-02 to the West Bank and Gaza Strip have prevented the complete collapse of the economy.
Industries: generally small family businesses that produce cement textiles soap olive-wood carvings and mother-of-pearl souvenirs; the Israelis have established some small-scale modern industries in the settlements and industrial centers
Imports: $1.9 billion c.i.f. includes Gaza Strip
Commodities: food consumer goods construction materials
Partners: Israel Jordan Gaza Strip (2000)
Exchange rates: new Israeli shekels per US dollar - 4.7378 (2002) 4.2057 (2001) 4.0773 (2000) 4.1397 (1999) 3.8001 (1998) 3.4494 (1997); Jordanian dinars per US dollar - fixed rate of 0.7090 (from 1996)
top of pagetop of pagetop of pagetop of pagetop of pageDisputes international: West Bank and Gaza Strip are Israeli-occupied with current status subject to the Israeli-Palestinian Interim Agreement - permanent status to be determined through further negotiation
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