Abstract

Since the last Ad Hoc Liaison Committee (AHLC) meeting, the PA has continued to strengthen its institutions, delivering public services and promoting reforms that many existing states struggle with. The quality of its public financial management (PFM) has further improved. Education and health in the West Bank and Gaza (WB&G) are highly developed, comparing favorably to the performance of countries in the region as well as globally. Ultimately, sustainable economic growth in WB&G can only be underpinned by a vibrant private sector. The latter will not rebound significantly while Israeli restrictions on access to natural resources and markets remain in place, and as long as investors are deterred by the increased cost of business associated with the closure regime. Education and health indicators for WB&G are impressive and reflect extensive coverage of the population, but a focus on improving the quality of these services remains warranted. Similarly, education investments take time to mature. While the PA is already implementing an education sector plan that highlights the importance of improving the quality of education, the relevance of graduates' skills remains an area requiring further attention. This report will therefore reflect on recent growth trends but also on the future trade regime and employability of the WB&G labor force.

Abstract

The objectives of the study are to: a) increase understanding of the effects and effectiveness of the implementation of the local government reform launched in 2006; and b) assess the impact of a World Bank-supported intervention that aimed to enhance effectiveness of the reforms by increasing local capacity and local participation. In line with these objectives, the study assessed the perceived effects and effectiveness of the implementation of the local government reform in selected provinces. The study also constitutes a baseline to allow for on-going assessment of progress and to inform corrective policy actions. The instruments and methods created during the study may be used in future assessments of the dynamics of local governance reform. These effects are reviewed in section two. The study also carried out a rigorous evaluation of the impact of an operational intervention carried out with World Bank support in the three regions of the study. This grant-funded project was aimed at increasing the effectiveness of participation of rural citizens in public life and increasing the capacity of local administrations to operate in the new legal and fiscal environment created by the decentralization reform. The summary of the impact evaluation can be found in section three.