Gaza Strip

Under the Israeli-PLO Declaration of Principles on Interim Self-Government Arrangements ("the DOP"), Israel agreed to transfer certain powers and responsibilities to the Palestinian Authority, and subsequently to an elected Palestinian Council, as part of interim self-governing arrangements in the West Bank and Gaza Strip.

A transfer of powers and responsibilities for the Gaza Strip and Jericho has taken place pursuant to the Israel-PLO 4 May 1994 Cairo Agreement on the Gaza Strip and the Jericho Area. The DOP provides that Israel will retain responsibility during the transitional period for external security and for internal security and public order of settlements and Israelis. Final status is to be determined through direct negotiations within five years.

In 1991 roughly 40% of Gaza Strip workers were employed across the border by Israeli industrial, construction, and agricultural enterprises, with worker remittances supplementing GDP by roughly 50%. Gaza depends upon Israel for nearly 90% of its external trade. Aggravating the impact of Israeli military administration, unrest in the territory since 1988 (intifadah) has raised unemployment and lowered the standard of living of Gazans.

The Persian Gulf crisis and its aftershocks also have dealt blows to Gaza since August 1990. Worker remittances from the Gulf states have dropped, unemployment has increased, and exports have fallen. The withdrawal of Israel from the Gaza Strip in May 1994 brings a new set of adjustment problems.

$NA, NA% of GDP GEORGIA Note--Georgia has been beset by ethnic and civil strife since independence. In late 1991, the country's first elected president, Zviad GAMSAKHURDIA was ousted in an armed coup. In October 1993, GAMSAKHURDIA, and his supporters sponsored a failed attempt to retake power from the current government led by former Soviet Foreign Minister Eduard SHEVARDNADZE. The Georgian government has also faced armed separatist conflicts in the Abkhazia and South Ossetia regions.

A cease-fire went into effect in South Ossetia in June 1992 and a joint Georgian-Ossetian-Russian peacekeeping force has been in place since that time. Georgian forces were driven out of the Abkhaz region in September 1993 after a yearlong war with Abkhaz separatists. Nearly 200,000 Georgian refugees have since fled Abkhazia, adding substantially to the estimated 100,000 internally displaced persons already in Georgia. Russian peacekeepers are deployed along the border of Abkhazia and the rest of Georgia.