The Palestinian Economy. Theoretical and Practical Challenges

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Proceedings “The Palestinian Economy: Theoretical and Practical Challenges” 267 • Municipalities in the West Bank have not initiated regulations based on article 15 of the LGL since 1994. Also, no such regulations have been published in the Palestinian Gazette. • On the other hand, the powers that article 15 grants LGU councils have been exercised by various municipalities in the Gaza Strip. Judging by the content of the Palestinian Gazette, the Jabalia Municipality seems to be one of the most active in this regard, having issued fewer than twelve sets of regulations on various topics. 30 On the other hand, the LGL does provide some powers to LGUs in requiring that, in a case where another governmental body is developing legislation related to an LGU function, it should coordinate with the MoLG, which, in turn, shall seek the opinion of the local council. A further step towards empowering LGUs was to allow joint service councils (JSCs) to be established. 31 The joint efforts of several adjacent LGUs could be a positive step towards strengthening local government activities. At least forty-nine JSCs have been established. 32 Special regulations were issued in this regard “in order to improve the standard and quality of services in the local authorities, especially in the small ones”. 33 However, these regulations have not been published in the Palestinian Gazette. It is worth noting here that the MoLG and the United Nations Development Programme (UNDP) have had a long-term program for developing rural areas since 1994. As part of this program, 17 micro-region planning committees (MRPCs) have been established, serving 210 LGUs. 34 However, despite these good intentions, there is no legal basis for establishing MRPCs under the current version of the LGL. 30 Such as the Regulation Concerning Streets and Roads and Pavements and their Maintenance, 2000. Another example is Regulations Concerning Collection of Taxes, 1999. 31 LGL, Article 15, paragraph C. 32 Regulations Concerning Joint Service Councils no. 1 of 1998. 33 MoLG Report of 2003, p. 63. 34 Ibid., pp. 56-59.
268 Zagha 4.1.3. The Relationship between the MoLG and LGUs The MoLG is required 35 to determine 36 and monitor the functions and structures of the councils, including budgetary, administrative, financial and legal oversight. Also, the law stipulates that the MoLG is to issue regulations “in order to perform its duties”. However, no such regulations have been issued thus far. As for the LGUs themselves, the council is described as an “independent judicial body”. 37 The LGU is to be managed by a council – the size of which is to be determined in regulations issued by the Minister. The chairman and members are to be directly elected. No elections have been held once since the LGL was issued and only after an amendment to the law requiring that the chairman be chosen by the elected members, rather be directly elected by the people. This is not in line in keeping with decentralisation and democratisation efforts. The local elections which were scheduled to take place in June 2010 were postponed indefinitely on political grounds to make some space to convince the Islamic Resistance Movement (Hamas) to participate in the elections as step towards reunifying Gaza Strip and the West Bank. 4.1.4. Fiscal Affairs Selling, donating, mortgaging and renting of immovable property of the council for more than three years require the Minister’s approval. 38 This article of the LGL is almost identical to article 44 of the 1955 Municipalities Law. 39 Borrowing funds (loans) by a council is likewise subject to the Minister’s approval. Article 45 of the 1955 Municipalities Law imposes the same limitation. The percentage of fees and fines collected in accordance with the Transport Law to be transferred to LGUs is 50% (45% net, after the central government deducts 55 as management fees). This is considerably higher than the 35% under Jordanian Law. However, the criteria for implementing this article are still unknown. 35 LGL, article 2(1). 36 “Delineate the general policy prescribed for Palestinian local councils”. 37 LGL, article 3(1). 38 LGL, article 20. 39 According to this 1955 Municipalities Law, article 5, a municipality is created upon application by the inhabitants of a village with a population of at least 2500, where there has been a council for at last five years. If this application is approved, a committee appointed by the minister is formed to function as the municipal council for a two-year period, during which time elections for a new council take place.
Page 1 and 2: The Palestinian Economy Theoretical
Page 3 and 4: © Gianni Vaggi - Marco Missaglia -
Page 6: VOLUME II
Page 9 and 10: 246 Zagha 1. Introduction The local
Page 11 and 12: 248 Zagha and groups in political d
Page 13 and 14: 250 Zagha drawbacks in the politica
Page 15 and 16: 252 Zagha it is not surprising that
Page 17 and 18: 254 Zagha economy (including expend
Page 19 and 20: 256 Zagha social norms sharply dist
Page 21 and 22: 258 Zagha Bird (1995) puts it, info
Page 23 and 24: 260 Zagha intergovernmental fiscal
Page 25 and 26: 262 Zagha low rate flat tax levied
Page 27 and 28: 264 Zagha need to be given access t
Page 29: 266 Zagha Such failures are found i
Page 33 and 34: 270 Zagha a final account report of
Page 35 and 36: 272 Zagha 4.1.6. Functions of LGUs
Page 37 and 38: 274 Zagha • Management of LGU ass
Page 39 and 40: 276 Zagha Figure 2: Local Governmen
Page 41 and 42: 278 Zagha In summary, what the data
Page 43 and 44: 280 Zagha on the cash basis. Almost
Page 45 and 46: 282 Zagha Figure 7: Business Opinio
Page 47 and 48: 284 Zagha within the Palestinian na
Page 49 and 50: 286 Zagha Table 5: Number of NGOs i
Page 51 and 52: 288 Zagha Fiscal decentralisation i
Page 53 and 54: 290 Zagha Burki, J., Perry, G., Dil
Page 55 and 56: 292 Zagha Palestinian Legislative C
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Assessing the Causes of Inequality
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Labour Force Instability and Employ
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424 Olivera provisions - in particu
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426 Olivera Figure 1: Economic Grow
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428 Olivera 3. Traditional economic
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430 Olivera costs and lower market
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The Palestinian Economy. Theoretical and Practical Challenges

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