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.
The Persian Gulf crisis and its aftershocks have dealt blows to Gaza since August 1990. Worker remittances from the Gulf states have dropped, unemployment and popular unrest have increased, and living standards have fallen. The redeployment of Israeli forces in the Gaza Strip in May 1994 has added to the set of adjustment problems. This series of disruptions has meant a sharp decline in employment in Israel since 1991 and a drop in GDP as a whole. An estimated 378,000 persons were in refugee camps in 1996.