Palestinian Authority is paving the way to statehood, UN report says

               Marked progress in six areas of Palestinian governance has paved the way for a functioning state, but there are still obstacles to be overcome, said a United Nations report released Tuesday. The report, titled "Palestinian State-building: A Decisive Period" is based on a review of the Palestinian Authority's implementation of a program initiated in August 2009. The program was geared toward creating various institutions that would prepare the Palestinians for statehood within two years. The review took into account developments in areas where the UN is most engaged and able to assess progress: governance, rule of law and human rights; livelihoods; education and culture; health; social protection; and infrastructure and water provision. Despite this progress in institution building, the UN found that the political split between the PA in the West Bank, and Hamas that controls Gaza Strip, hinders efforts to lay foundations for Palestinian statehood. Hamas has controlled Gaza since a takeover in 2007, and although some steps have been taken to bridge the rift between the Islamist Gaza-based movement and its more moderate West Bank counterpart, little progress has been made. Israel Prime Minister Netanyahu has said that Israel will not negotiate with a joint Hamas-PA leadership. Hamas has not yet recognized the legitimacy of the State of Israel, and in the past week has exchanged heavy fire with Israel over the Gaza border. Palestinians have been killed in the fray and an Israeli child was mortally wounded. "What we urgently need are further steps on the ground that can enable a broadening of this progress," said Robert Serry, the UN special coordinator for the Middle East peace process, whose office prepared the report. Although the report noted recent measures taken by Israel to improve movement and access to the West Bank in a bid to support economic activity in the territory, Serry said this was not enough. The special coordinator called on Israel "to roll back measures of occupation" to match Palestinian achievements. He also stressed "the urgent need for Israeli-Palestinian peace negotiations on a two-state solution to resume, if the state building and political tracks are to come together by September." The report will be presented on April 13 to the Ad Hoc Liaison Committee (AHLC), a 12-member committee of the European Union and United States which serves as the principal policy-level coordination mechanism for development assistance to the Palestinians. Palestinian Authority Prime Minister Salam Fayyad will also be presenting a document to the committee, which claims that the Palestinians are ready for statehood now. In the report, "Building Palestine. Achievements and Challenges", Fayyad shows facts and figures demonstrating how his Palestinian Authority has used hundreds of millions of dollars in foreign assistance over the past two years to create health, education, energy, water, security, justice and housing services. (17,00)