Permanent status negotiations began on 5 May 1996, but have not resumed since the initial meeting. Under the DOP, Israel agreed to transfer certain powers and responsibilities to the Palestinian Authority, which includes a Palestinian Legislative Council elected in January 1996, as part of interim self-governing arrangements in the West Bank and Gaza Strip. Protocol Concerning Redeployment in Hebron. The DOP provides that Israel will retain responsibility during the transitional period for external security and for internal security and public order of settlements and Israelis.
Permanent status is to be determined through direct negotiations.
Industries using advanced technology or requiring sizable investment have been discouraged by a lack of local capital and Israeli policies that block the movement of goods and people. Capital investment consists largely of residential housing, not productive assets that would enable local Palestinian firms to compete with Israeli industry. GDP has been substantially supplemented by workers who commute to jobs in Israel. Worker remittances from the Persian Gulf states dropped after Iraq invaded Kuwait in August 1990. In the wake of the Persian Gulf crisis, many Palestinians have returned to the West Bank, increasing unemployment, and export revenues have dropped because of the decline of markets in Jordan and the Gulf states.