Palestinian Authority

The Palestinian Authority (PA), formally known as the Palestinian National Authority, is the provisional administrative structure established to exercise limited self-government in specific areas of the West Bank and the Gaza Strip. Its formation emerged from the 1993 Oslo Accords and subsequent agreements, which aimed to serve as a framework for eventual final-status negotiations between Israel and the Palestine Liberation Organization (PLO). Although intended as a five-year interim system, the PA has continued to operate for decades amid political fragmentation, stalled diplomacy and evolving territorial realities.

Formation and Legal Foundation

The PA was created following the signing of the Gaza–Jericho Agreement on 4 May 1994. This arrangement implemented elements of the earlier Oslo Accords, granting the PA responsibility for civil administration and internal security in designated Palestinian-populated areas. The PLO’s Palestinian Central Council approved the establishment of the Authority later that year, defining its accountability to the PLO Executive Committee.
The administrative structure of the PA was designed to manage local matters such as policing, education, health services and municipal governance. However, it was not permitted to conduct foreign affairs or external security, which remained the prerogatives of the PLO and subject to the broader diplomatic framework negotiated with Israel. Palestinians in the diaspora and Arab citizens of Israel were excluded from voting for PA institutions, differentiating the PA from the PLO, which retained wider representational authority.
The Oslo II Accord (1995) divided the West Bank into Area A, Area B and Area C, allocating varying degrees of PA control:

• Area A: Full civil and security authority for the PA in major Palestinian cities.
• Area B: Civil authority to the PA with security responsibilities shared with Israel.
• Area C: Full Israeli civil and security control, encompassing settlements, strategic regions such as the Jordan Valley and connecting road networks.

East Jerusalem was excluded from these arrangements and remained under Israeli administration.

Governance, Currency and Institutional Development

The Oslo-era Protocol on Economic Relations permitted the PA to use multiple currencies. As a result:

• In the West Bank, the Israeli new shekel and the Jordanian dinar circulate widely.
• In the Gaza Strip, the Israeli new shekel and the Egyptian pound are commonly used.

The PA’s first legislative elections were held in January 1996, producing the Palestinian Legislative Council. The elected government’s mandate officially expired in 1999, but no new elections were held due to political instability and the collapse of the peace process. Over time, the PA developed a network of ministries, security services and public institutions, though these have been frequently constrained by territorial fragmentation and political divisions.

Impact of the Second Intifada and Shifts in Authority

The outbreak of the Second Intifada in 2000 profoundly affected the PA’s capacity to govern. Israel reasserted control over several West Bank areas previously transferred to the PA, citing security concerns. Important infrastructure was damaged, security cooperation deteriorated and the Authority’s ability to exercise its designated powers weakened.
Following Yasser Arafat’s death in 2004, Rawhi Fattouh briefly assumed acting leadership before the election of Mahmoud Abbas as president. International actors, including the Quartet on the Middle East, pressed for institutional and security reforms, linking financial support to demonstrated progress.
In 2005 Israel undertook its unilateral disengagement from the Gaza Strip, withdrawing settlements and military installations. Although the move expanded nominal PA control over the territory, Israel retained control over airspace, maritime boundaries and border crossings aside from the Egyptian frontier.

Political Division: Hamas and Fatah

A major rupture in Palestinian governance followed the 2006 Palestinian legislative elections, in which Hamas secured a majority. The appointment of Ismail Haniyeh as prime minister triggered international conditions for continued financial assistance—non-violence, recognition of Israel and acceptance of previous agreements. Hamas rejected these requirements, prompting the suspension of direct foreign aid and Israeli economic sanctions.
Tensions escalated into a violent confrontation between Hamas and Fatah. In June 2007 Hamas seized control of the Gaza Strip, leading President Mahmoud Abbas to dismiss the unity government and appoint Salam Fayyad as prime minister of a West Bank-based administration. Hamas did not recognise the dismissal, resulting in two parallel governments:

• A Fatah-led Palestinian Authority governing the West Bank.
• A Hamas administration governing the Gaza Strip.

Repeated reconciliation efforts have produced partial agreements but no enduring political reunification.

International Standing and Diplomatic Recognition

The PA operates within the broader political identity of the State of Palestine, which obtained United Nations observer state status in 2012. The PLO continues to function as the overarching representative of the Palestinian people in international forums, whereas the PA manages administrative affairs in the territories under its jurisdiction.
Financially, the PA has relied heavily on external donors, including the United States and the European Union. In 2005 it received nearly one billion US dollars in combined assistance. Suspensions and conditional aid have periodically influenced PA policy and internal political dynamics.
Since January 2009, when Abbas’s presidential term officially ended without new elections, disputes regarding legitimacy have persisted. Many Hamas supporters and citizens of Gaza view the speaker of the Legislative Council, Aziz Dweik, as acting president, highlighting continued institutional fragmentation.

Criticism, Democratic Limitations and Human Rights

The PA is frequently described as an authoritarian governing structure. It has not held national elections for more than fifteen years. Critics cite concerns relating to:

• Restrictions on freedom of expression.
• Arrests of journalists and activists.
• Allegations of torture and mistreatment in detention.
• Limitations on political pluralism.

These issues have drawn attention from international human rights organisations and have affected public trust and internal political cohesion.

Continuing Negotiations and Unresolved Final-Status Issues

The intended five-year interim period of PA governance expired in 1999 without a final-status agreement. Multiple negotiation attempts—including the Camp David Summit (2000), the Taba talks (2001) and the Geneva Initiative (2003)—failed to produce a comprehensive settlement. Core issues remain unresolved, including borders, security arrangements, settlements, refugees, Jerusalem and mutual recognition.