The West Bank and Gaza are comprised of about 2, 400 square miles and have a combined population of 4.3 million people. The Palestinian Authority and Israel administer areas within the West Bank, and the Hamas-controlled de facto authorities operate in Gaza. A negotiated two-state solution to the Israeli-Palestinian conflict is a core U.S. national security objective. The U.S. government’s foreign assistance program in the West Bank and Gaza is designed to advance progress toward the two-state solution by helping the Palestinian Authority build the institutions of a future Palestinian state, creating an atmosphere that supports negotiations, and improving the everyday lives of Palestinians, thereby contributing to the overall stability and security of the region. The U.S. government has provided assistance to the West Bank and Gaza both bilaterally and multilaterally for several decades. According to the State Department, the U.S. government is one of the largest donors to the Palestinian Authority, providing about $3 billion in bilateral assistance for fiscal years 2008 through 2012 to support education and social services, economic development, and humanitarian assistance, among other sectors. This book describes (1) the nature and scope of U.S. government involvement with the Palestine Investment Fund (PIF), and (2) the processes for vetting PIF and other non-U.S. entities. To address these objectives, the Government Accountability Office (GAO) reviewed and analyzed annual reports, U.S. antiterrorism policies, agency-specific vetting policies and procedures, and applicable program agreements obtained from PIF and relevant U.S. agencies and their implementing partners.
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