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Background The September 1993 Israel-PLO Declaration of Principles on Interim Self-Government Arrangements provided for a transitional period of Palestinian self-rule in the West Bank and Gaza Strip. Under a series of agreements signed between May 1994 and September 1999, Israel transferred to the Palestinian Authority (PA) security and civilian responsibility for many Palestinian-populated areas of the West Bank and Gaza. Negotiations to determine the permanent status of the West Bank and Gaza stalled following the outbreak of an intifada in September 2000. In April 2003, the Quartet (US, EU, UN, and Russia) presented a roadmap to a final settlement of the conflict by 2005 based on reciprocal steps by the two parties leading to two states, Israel and a democratic Palestine. Following Palestinian leader Yasir ARAFAT's death in late 2004, Mahmud ABBAS was elected PA president in January 2005. A month later, Israel and the PA agreed to the Sharm el-Sheikh Commitments in an effort to move the peace process forward. In September 2005, Israel unilaterally withdrew all its settlers and soldiers and dismantled its military facilities in the Gaza Strip and withdrew settlers and redeployed soldiers from four small northern West Bank settlements. Nonetheless, Israel still controls maritime, airspace, and most access to the Gaza Strip. In January 2006, the Islamic Resistance Movement, HAMAS, won control of the Palestinian Legislative Council (PLC). HAMAS took control of the PA government in March 2006, but President ABBAS had little success negotiating with HAMAS to present a political platform acceptable to the international community so as to lift economic sanctions on Palestinians. Violent clashes between Fatah and HAMAS supporters in the Gaza Strip in 2006 and early 2007 resulted in numerous Palestinian deaths and injuries. In February 2007, ABBAS and HAMAS Political Bureau Chief MISHAL signed the Mecca Agreement in Saudi Arabia that resulted in the formation of a Palestinian National Unity Government (NUG) headed by HAMAS member Ismail HANIYA. However, fighting continued in the Gaza Strip, and in June 2007, HAMAS militants succeeded in a violent takeover of all military and governmental institutions in the Gaza Strip. ABBAS dismissed the NUG and through a series of presidential decrees formed a PA government in the West Bank led by independent Salam FAYYAD. HAMAS rejected the NUG's dismissal, and despite multiple rounds of Egyptian-brokered reconciliation negotiations, the two groups have failed to bridge their differences. The status quo remains with HAMAS in control of the Gaza Strip and ABBAS and the Fatah-dominated PA governing the West Bank. FAYYAD and his PA government continue to implement a series of security and economic reforms to improve conditions in the West Bank. ABBAS has said he will not resume negotiations with current Prime Minister NETANYAHU until Israel halts all settlement activity in the West Bank and Jerusalem. Geography landlocked; highlands are main recharge area for Israel's coastal aquifers; there are about 340 Israeli civilian sites - including 100 small outpost communities in the West Bank and 29 sites in East Jerusalem (July 2008 est.) Government type Population 2,514,845 Education expenditures NA Economy - overview Industries 500 million kWh Electricity - production 0 kWh (2008) Stock of money $1.367 billion (31 December 2008) Exchange rates