ISPI - Istituto per gli Studi di Politica Internazionale

03/22/2024 | Press release | Archived content

Reforming the Palestinian Authority: An Elusive Task

The MED This Week newsletter provides informed insights on the most significant developments in the MENA region, bringing together unique opinions and reliable foresight on future scenarios. Today, we shed light on the prospects for the reform of the Palestinian Authority, following Mohammed Mustafa's recent appointment as new prime minister.

A few days ago, three weeks after Mohammad Shtayyeh's resignation, Palestinian President Mahmoud Abbas appointed Mohammad Mustafa as the new Prime Minister. Mustafa, a US-educated economist and Abbas' longtime adviser on economic affairs, has been entrusted with the task of assembling a new government poised to kickstart the long-awaited reform of the Palestinian Authority (PA). Three decades since its foundation, the PA is currently grappling with a crisis of legitimacy, further compounded by the ongoing war in Gaza. Even though some of its root causes are structural, endemic corruption, mismanagement and the lack of democratic legitimacy have fuelled the current crisis of the PA. Many international actors continue to see its return to the Gaza Strip as the only viable solution for the "day after". However, without substantive structural reforms the PA risks to collapse. In this critical juncture, there is a pivotal role for the international community to play, both politically and financially. Supporting the reform of Palestinian institutions and laying the groundwork for a new and credible political process for Israel-Palestine are just two sides of the same coin.

Experts from the ISPI network discuss the prospects for the reform of the Palestinian Authority.

An appointment that reinforces the status quo

"The cabinet reshuffle merely reinforces the injustices of the status quo and is very much in keeping with US support for a depoliticised solution that offers Palestinians economic relief but no serious or effective political rights under an apolitical technocratic Palestinian government. Furthermore, the unilateral appointment of Mohmmad Mustafa, a World Bank policy wonk and close aide to Abbas, does nothing to further the political goals of unity, democratic renewal and attaining a fair and just political settlement to the conflict. Significantly, as long as power remains concentrated in the hands of Abbas, he will remain the centre of political momentum by dominating diplomatic initiatives and using the situation to marginalise discussions of political reform that would remove him as head of state to create any possible opportunity for Palestinian political renewal and unity."

Tahani Mustafa, Senior Analyst, International Crisis Group

Little will change until the war ends

"In an official statement, Hamas rejected the appointment of the new Prime Minister Mohammad Mustafa. The Islamist group believes that only a national consensus, the formation of a unified leadership and "free democratic elections" should define the future of Palestine. Whatever it says, in its present configuration - a radical and vicious movement refusing the two-states solution - Hamas cannot be a political option: it cannot be part of any "day after". But neither Mr. Mustafa will be part of it: Mahmud Abbas has simply exchanged an associate (Mohammed Shtayyeh) with another as premier. It has been just an interim appointment. Nothing will happen, both in term of generational change and fundamental reforms, until the end of war. And we still do not know when that will happen."

Ugo Tramballi, Senior Advisor, ISPI

A political settlement is still a precondition for Palestinian economic growth

"The PA's economic structure is constrained significantly by Israel's occupation and internal economic mismanagement, alongside the absence of a solid economic and productive base. This situation has been perpetuated by decades of Israeli policies that have systematically encouraged the inflow of external income through aid and workers' remittances from the Israeli market, rather than fostering domestic economic growth. The reliance on an aid-induced development and institution-building model, which has proven ineffective in the West Bank, should not be replicated in future reform agendas. Despite receiving over USD50 billion in aid since 1993, scholarly analyses consistently highlight the inability of this assistance to either support the establishment of a Palestinian state or ensure lasting peace. Reform efforts for the PA must transcend the traditional focus on institution building as a precondition for political settlement or statehood. Achieving sustainable economic outcomes through reform necessitates a definitive political settlement that would enable the occupied Palestinian territories to economically integrate with the global community for the first time since 1967, thus moving beyond the longstanding external income dependency."

Anas Iqtait, Non-Resident Scholar, Middle East Institute; Assistant Professor, The Australian National University

What the international community needs to do to support the PA's reform

"Soon after his appointment on March 14, designated prime minister Mohamed Mustafa announced a comprehensive reform agenda. In supporting PA reform, the international community should focus on three key issues. Firstly, it is necessary to create conducive conditions by preventing further destabilisation of the West Bank, working towards a ceasefire in Gaza, and ensuring reliable financing of the PA (including leaning on Israel to reliably transfer funds as stipulated in the Oslo Accords). Secondly, it is pivotal to remove international obstacles to a truly technocratic government that is supported by all factions and thus capable of assuming responsibility in the Gaza Strip on the day after the war. Finally, the international community should demand genuine reforms aimed at returning to a political system of checks and balances that provides for regular and competitive elections."

Muriel Asseburg, Senior Fellow, German Institute for International and Security Affairs

US plans for a reform of the PA are inherently fragile

"US plans to initiate PA reform are unlikely to come to fruition. While the US wields tremendous leverage over the highly dependent PA, President Mahmoud Abbas and his cohorts prioritise power above all else and will be unwilling to voluntarily step aside. For its part, the US has historically been reluctant to push for fresh PA elections because of its own fears over replacing Abbas, who has upheld security cooperation with Israel despite the collapse of the peace process. Today, the PA's diminished legitimacy doesn't solely stem from the corruption or authoritarian tendencies of its leaders. Rather, it is largely due to the specific role imposed upon it by the United States and Israel: administering the Palestinian territories and providing security for Israel without ending the military occupation. Until that fundamental issue is addressed, the PA will have no legitimacy and certainly will not be able to step into the void in Gaza and rule over its ruins."

Omar Rahman, Fellow, Middle East Council on Global Affairs