The Palestinian Authority (PA) continues to experience a severe fiscal crisis, which threatens to become protracted given recent and projected declines in donor assistance. The PA is making a concerted effort to strengthen its fiscal position, including taking steps to raise domestic revenues...

The World Bank's June 23 report, "Disengagement, the Palestinian Economy and the Settlements," warns of the potential disintegration of the Palestinian economy under the sustained pressures of conflict and Israeli closure policies--a situation which is potentially ruinous for both Palestinians...