WINEP, 21 Dec 07: The Palestinians: Between State Failure and Civil War
The Palestinian Authority (PA), though lacking certain key attributes of sovereignty, has largely functioned as a de facto state since its creation in 1994. Almost from the outset, however, the process of Palestinian state formation was accompanied by a parallel process of economic decline and institutional, territorial, and political fragmentation. The latter process was greatly accelerated by the second intifada (2000–2004), the formation of a Hamas government following January 2006 legislative elections (leading to international sanctions on the PA) and then a short-lived national-unity government, and the June 2007 Hamas takeover of Gaza. Today, the PA—hovering between survival and collapse—displays many of the traits of a failed state.....
Complete 56 page paper at the link.