The Palestinian Economy. Theoretical and Practical Challenges

Proceedings “The Palestinian Economy: Theoretical and Practical Challenges” 271
are enforced under the 1966 Planning Law, 41 which confers enforcement authority upon
the regional or local committee. It is thus necessary to add a comprehensive set of
enforcement tools to the LGL to ensure that the legislation is properly enforced.
In light of the above, it is reasonable to conclude that the LGL has introduced some
positive changes in comparison with previous laws. Nonetheless, it is still accurate to say
that, in general, “the system of local government provided for in the Law of Local
Government is centralised and paternalistic, particularly with respect to financial and
fiscal matters”. 42 However, the law reflects a centralised view of local government, as a
proportionally high number of local government actions are subject to ministry approval
which include the following:
• The local council’s bylaws (article 15 (b)).
• The annual budget (articles 15 (a), 25, and 31).
• Contracting out services (article 15).
• Selling and renting of property (articles 15 (a), 2o and 26).
• Loans (article 21).
• Reduction or cancellation of taxes/fees owed to the local council (article 28(a)).
• Penalties (article 28(b)).
• Final balance (article 32).
• The annual report (article 36).
• Tax and fee changes.
The LGL lacks clarity with respect to many issues. Inter alia, it lacks clarity on how
the MoLG is to determine LGU functions and power; on what basis “other governmental
bodies” may carry out tasks that are the responsibility of local councils; on the
relationship between the power given to the local council and the powers given to the
“Local Committee”.
41 Articles 40-45 of the 1966 Planning Law.
42 ARD, Inc. working paper (February 2000), p. 5.