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National Early Recovery and Reconstruction Plan for Gaza 2014-2017_FINAL

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151.2 The <strong>National</strong> Consensus Government: Priority AgendaThe recent Israeli assault started five weeks after the <strong>for</strong>mation of a <strong>National</strong> Consensus Government – the first government toadminister in both the West Bank <strong>and</strong> <strong>Gaza</strong> since 2007. Formed as a result of President Mahmoud Abbas’ successful ef<strong>for</strong>ts toachieve national reconciliation, this Government aims to institutionally, legally, economically, <strong>and</strong> socially reintegrate <strong>Gaza</strong> <strong>and</strong> theWest Bank, as a step towards achieving the aim of an independent <strong>and</strong> vibrant Palestinian state, with East Jerusalem as its capital.Upon its inception on June 2, <strong>2014</strong>, the <strong>National</strong> Consensus Government was met with strong popular Palestinian support <strong>and</strong>welcomed by key international stakeholders, including all the Quartet members: the United States, the European Union, Russia<strong>and</strong> the United Nations.However, Israel expressed immediate <strong>and</strong> continued opposition to the <strong>National</strong> Consensus Government. It significantly limitedthe new Government’s ability to effectively oversee the rehabilitation <strong>and</strong> integration of the ministries <strong>and</strong> national institutions,including by preventing the movement of Government members between the West Bank <strong>and</strong> <strong>Gaza</strong>.1.2.1 Institutional <strong>and</strong> Legal AgendaCoupled with external challenges caused by the Israeli occupation, the new Government must address complex internalgovernance tasks, including the complex harmonization of national institutions, civil services, <strong>and</strong> legal systems. Following sevenyears of political separation, the full harmonization of Government institutions, civil service, <strong>and</strong> legal systems between <strong>Gaza</strong> <strong>and</strong>West Bank is a historical opportunity that will take time to realize. The overall objective of the Government is to reunite the bodypolitic <strong>and</strong> strengthen state institutions through the implementation of the reconciliation agreement, with the aim of ensuringa unified Palestinian government effectively governing both <strong>Gaza</strong> <strong>and</strong> the West Bank.At the center of the ef<strong>for</strong>t to reunify <strong>and</strong> harmonize institutions is the issue of pre-2007 employees <strong>and</strong> the post-2007 staffengaged by the then de facto authority in <strong>Gaza</strong>. This issue has to be addressed in the short-term while ensuring that theGovernment is able to function in <strong>Gaza</strong> <strong>and</strong> carry out recovery <strong>and</strong> reconstruction ef<strong>for</strong>ts, <strong>and</strong> without undermining theintroducing of a plan <strong>for</strong> the rationalization of civil service in <strong>Gaza</strong> <strong>and</strong> capacity development in the medium-long term. Theresolution of these issues is further complicated by external legal challenges <strong>and</strong> the dire economic situation, in particular theinability of the economy to generate jobs under current circumstances.Establishing <strong>and</strong> maintaining law <strong>and</strong> order under the Government authority requires arrangements in the immediate <strong>and</strong>short-term <strong>for</strong> controlling the border crossings; harmonizing the police <strong>for</strong>ce; <strong>and</strong> increasing support to civil defense in responseto early recovery ef<strong>for</strong>ts. In the medium-long term, security sector re<strong>for</strong>m is essential to ensure the integration of the security<strong>for</strong>ces under a clear comm<strong>and</strong> structure, along with capacity-building.The third major priority is the reintroduction of a unified justice system in <strong>Gaza</strong> by addressing the status of applicable laws, effectof legal decisions, <strong>and</strong> reunification of the court system, while continuing the process that was begun prior to 2007 of unifyingthe different laws, resulting from historic separation <strong>and</strong> different legal systems between the West Bank <strong>and</strong> <strong>Gaza</strong>.1.2.2 Economic <strong>and</strong> Fiscal AgendaThe reversal of long term economic deterioration in Palestine, but especially in <strong>Gaza</strong>, is critical. The Palestinian economy has beenstrangled by ongoing restrictions <strong>and</strong> a highly uncertain political outlook. This has been felt even more acutely in recent years asa result of falling <strong>for</strong>eign aid levels. Growth fell to 1.9 percent in 2013 <strong>and</strong> is <strong>for</strong>ecast to be negligible in <strong>2014</strong>. Since this is belowthe average population growth of 3 percent, Palestinians are seeing their GDP per capita decline.This economic picture is even more startling when looking at <strong>Gaza</strong>, where repeated military assaults have time <strong>and</strong> againdestroyed economic infrastructure <strong>and</strong> paralyzed economic activity. The impact has been compounded by the severe economicshock produced by the seven-year blockade on exports <strong>and</strong> imports, which has prevented movement of goods <strong>and</strong> people

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