The Palestinian Economy. Theoretical and Practical Challenges

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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.
272 Zagha 4.1.6. Functions of LGUs Local government bodies increased after the establishment of the PNA from a total of 30 municipalities, 109 village councils before 1994 to 120 and 251 consecutively. Also there were no “project committees” before 1994 but 128 were added after that. A logical result of that was the increase in the number of employees at these bodies which increased from 5334 before 1994 to 11,745 persons after 1994. These LGU provide basic services which include electricity, tap water, and waste collection and disposal. The following table indicates the coverage of these services according to the LGU type. The number of LGUs changed over time but it had increased substantially due to the establishment of the PA and their structure had become more diversified reflecting a movement towards more administrative decentralisation. Table summarises this trend. Table 1: LGUs Historical Development Ottoman Period 1516- 1917 British Mandate 1917- 1948 Jordanian Administra tion 1948- 1976 Israeli Occupation 1967-1994 1994- 1997 2000 2004 2010 Municipalities 22 62 25 28 86 95 121 132 Village Councils Project Committees 0 0 87 87 197 212 252 235 0 0 0 0 98 111 128 115 Total 22 62 112 115 381 418 503 482 Joint Services Councils 0 0 0 0 42 86 86 Total 22 62 112 115 381 460 589 568 Source: Joint Services Councils Department, Ministry of Local Government. Ramallah, 2010. The functions to be carried out by LGUs are specified in the 1997 LGL and are listed in the first Column of Table 1. The current laws (in particular the LGL and the Elections for Local Authorities Law) make no distinction between the different types of LGUs. Thus, all types of councils, including municipalities, local councils, village councils, and project committees are required to undertake the same functions. There is a clear need to differentiate among different functions to be carried out by different types of councils, and to amend the legislation accordingly. All of the listed functions are mandatory; the LGU is obliged to undertake the functions or at least monitor the situation and provide
Page 1 and 2: The Palestinian Economy Theoretical
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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 and 30: 266 Zagha Such failures are found i
Page 31 and 32: 268 Zagha 4.1.3. The Relationship b
Page 33: 270 Zagha a final account report of
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
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424 Olivera provisions - in particu
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430 Olivera costs and lower market
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