Gaza Strip

Inhabited since at least the 15th century B.C., Gaza has been dominated by many different peoples and empires throughout its history; it was incorporated into the Ottoman Empire in the early 16th century. Gaza fell to British forces during World War I, becoming a part of the British Mandate of Palestine. Following the 1948 Arab-Israeli War, Egypt administered the newly formed Gaza Strip; it was captured by Israel in the Six-Day War with Egypt in 1967, and later transferred to the Palestinian National Authority.

Under a series of agreements signed between 1994 and 1999, Israel transferred to the Palestinian Authority (PA) security and civilian responsibility for many Palestinian-populated areas of the Gaza Strip as well as the West Bank. Negotiations to determine the permanent status of the West Bank and Gaza Strip stalled after the outbreak of an intifada in mid- 2000. In early 2003, the "Quartet" of the US, EU, UN, and Russia, presented a roadmap to a final peace settlement by 2005, calling for two states - Israel and a democratic Palestine.

Following Palestinian leader Yasir ARAFAT's death in late 2004 and the subsequent election of Mahmud ABBAS (head of the Fatah political party) as the PA president, Israel and the PA agreed to move the peace process forward. Israel in late 2005 unilaterally withdrew all of its settlers and soldiers and dismantled its military facilities in the Gaza Strip, but continues to control maritime, airspace, and other access. In early 2006, the Islamic Resistance Movement, HAMAS, won the Palestinian Legislative Council election and took control of the PA government.

Attempts to form a unity government failed, and violent clashes between Fatah and HAMAS supporters ensued, culminating in HAMAS's violent seizure of all military and governmental institutions in the Gaza Strip. Fatah and HAMAS in early 2011 agreed to reunify the Gaza Strip and West Bank, but the factions have struggled to implement details on governance and security. Brief periods of increased violence between Israel and Palestinian militants in the Gaza Strip in 2007-08 and again in 2012, both led to Egyptian-brokered truces. The status quo remains with HAMAS in control of the Gaza Strip and the PA governing the West Bank.

Israeli security controls imposed since the end of the second intifada have degraded economic conditions in the Gaza Strip, the smaller of the two areas comprising the Palestinian territories. Israeli-imposed border closures, which became more restrictive after HAMAS seized control of the territory in June 2007, have resulted in high unemployment, elevated poverty rates, and a sharp contraction of the private sector that had relied primarily on export markets.

The population depends on government spending - by both the Palestinian Authority and HAMAS's de facto government - and humanitarian assistance. Changes to Israeli restrictions on imports in 2010 resulted in a rebound in some economic activity, but regular exports from Gaza still are not permitted. Standard-of-living measures remain below levels seen in the mid-1990s.