Order Code RS22047
Updated March 1, 2005
CRS Report for Congress
Received through the CRS Web
Palestinian President Mahmoud Abbas:
Overview of Internal and External Challenges
Aaron D. Pina
Analyst in Middle East Affairs
Foreign Affairs, Defense, and Trade Division
Summary
On January 15, 2005, Mahmoud Abbas (a.k.a. Abu Mazen) was sworn in as
President of the Palestinian Authority (PA). Many believe that the Abbas victory marks
the end of an autocratic era dominated by the late Yasir Arafat and the increased
possibility of improved prospects for Israeli-Palestinian peace. This report details
Abbas’s policy platform and potential challenges he may face from within and without
the Palestinian political landscape as power-sharing becomes a reality. Domestically,
Abbas must address violent anti-occupation elements, calls for economic, judicial, and
security reform, as well as a paralyzed economy. Externally, Abbas faces multiple
obstacles in creating a viable Palestinian state based on a secure peace with Israel. To
accomplish this, Abbas must address the requirements of the ‘Road Map,’ Palestinian
violence toward Israel, and final status issues, such as Jerusalem, refugees, and political
borders. For a more detailed analysis see CRS Report RS21965, Arafat’s Succession,
by Clyde Mark and CRS Report RS21235, The PLO and its Factions, by Kenneth
Katzman. This report will be updated as necessary.
Palestinian Centers of Power
Fatah. Under Arafat, Fatah became the most prominent political party in the
Palestinian territories. The leading political body within Fatah is the Central Committee
(CC), elected by the general membership. Fatah’s Revolutionary Council (RC) parallels
the CC as a decision-making body and does not exclude armed resistance as an option.
On November 21, 2004, Fatah nominated Mahmoud Abbas as its presidential candidate.
Some analysts claim any credibility that a moderate Abbas may have within Fatah hinges
on a compromise between “old-guard” CC Members and the RC “young-guard”.1
1 The “old-guard” are founding members of the PLO and Fatah, and the “young-guard” are
generally comprised of key actors in the first Intifada (uprising ), who seek an increased role in
deciding the orientation of the national movement.
Congressional Research Service ˜ The Library of Congress

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CRS-2
Palestinian Liberation Organization (PLO). The PLO describes itself as “the
embodiment of the Palestinian national movement”, and for four decades it was
dominated by Arafat.2 The PLO is organized into three political bodies: Palestine
National Council, a parliamentary body; the Central Council, a 124 member
decision-making body; and the 18-member Executive Committee, which elects the
Chairman of the PLO. After the death of Arafat, the Executive Committee elected
Mahmoud Abbas as Chairman of the PLO.
Palestinian Authority (PA). The PA, created by the 1993 Declaration of
Principles, is an autonomous body charged with administrating the West Bank and Gaza.
On January 9, 2005, the PA held Presidential elections and Mahmoud Abbas was certified
as winner and President-elect. On December 23, 2004, in West Bank municipalities that
completed local elections, Fatah defeated Hamas; on January 27, 2005, Gazan municipal
elections were held with Hamas winning substantial victories (77 out of 118 seats).
Hamas boycotted the Presidential elections. The first six months of 2005 will see local
and municipal elections in the West Bank, Gaza Strip, and portions of East Jerusalem.
In the summer of 2005, legislative and party elections are expected.
Palestinian Presidential Elections
Candidates
Votes (%)
Votes (total)
Mahmoud Abbas
65.52
501,448
Mustufa Barghouti
19.48
156,227
Tayseer Khaled
3.35
26,848
Abd Alhalim Ashqar
2.76
22,171
Basam Al Salhi
2.67
21,429
Assayed Barakeh
1.30
10,406
Abd Al-Karim Shbair
0.71
5,717
Source Palestinian Central Elections Commission
Positions on Internal Security and Reform Challenges
Security Services. Most analysts agree that the PA security apparatus must be
reformed in order to halt violence directed against Israel and provide stability for a future
Palestinian state. Recently, the PA National Security Council (NSC) was formed as a first
step in consolidating security elements.3 According to the legislation, as President, Abbas
is supreme commander of three institutions which consolidate dozens of security services:
General Security (civil and preventive services), General Intelligence (unifies PA
intelligence organs), and the National Security Council (the basis of a possible armed
force). Recently, Secretary of State Rice has stated that the “United States is prepared to
help train Palestinian security forces.”4 Egypt has also offered to train Palestinian security
forces in Gaza. Many view the new PA cabinet as part of continued reform. On February
22, 2005, the Palestinian Prime Minister announced the appointment of Nasser Yousef
2 Available at [http://www.palestine-un.org/plo/frindex.html].
3 Arnon Regular, “PA Security Council to Oversee Armed Forces,” Ha’aretz, January 11, 2005.
4 “Rice: U.S. Prepared to Train Palestinian Security Forces,” Ha’aretz, February 4, 2005.

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as head of internal security.5 The previous head of security, Mohammad Dahlan, will
head the civil affairs ministry. Nabil Shaath, the former Minister of Foreign Affairs, is
now the Deputy PM, and Dr. Naser al Qidweh (former head of PA Mission to the UN)
now heads the foreign affairs ministry. Many feel that the retention of Salem Fayyad as
Finance Minister is a positive step. Over half of the twenty-four member cabinet are new
Members.
Corruption. The PA has been criticized repeatedly for non-transparency,
corruption, and cronyism and Palestinian opinion surveys consistently reveal public
displeasure over corruption.6 However, recent international assessments have
acknowledged progress in Palestinian judicial, economic, and political reforms.7 Abbas
stated the need to “continue to implement and develop its reform plan.”8 On March 1,
2005, Britain hosted a conference on Palestinian reform. At the conference, the European
Union pledged to assist with the establishment of new Palestinian institutions; the United
States committed to setting up a security coordinating group; and the World Bank stated
its desire to play a crucial role in economic development.
Economic Conditions. One of the most pressing domestic issues Abbas faces
is economic stagnation. A recent World Bank report warns of “the potential
disintegration of the Palestinian economy under the sustained pressure of conflict and
Israeli closure policies.”9 Many analysts agree that openly contested, free elections, and
ongoing reforms may increase the likelihood of international aid to Palestinians,
particularly from the United States.10 According to one report, “people voted for Abbas
because they believed that he would be able to bring them jobs, and improve their living
conditions.”11 Abbas ties economic well-being to judicial reform, transparency, and an
end to the Israeli closure regime. [see below]
The Palestinian Opposition. Nationalist groups and some Islamists such as
Hamas, Islamic Jihad, and the Al-Aksa Martyrs Brigade oppose many PA bilateral
agreements with Israel with some continuing to advocate violent resistance to the
5 Arnon Regular, “Qureia to revamp cabinet with reform-minded ministers .” Ha’aretz, February
22, 2005.
6 Dan Diker and Khaled Abu Toameh, Jerusalem Issue Brief, Vol. 3, No. 20, March 3, 2004.
7 The Ad Hoc Liaison Committee for the West Bank and Gaza was established to ensure the
efficient use of development assistance in support of the peace process and contribute to the
development of Palestinian society. On December 10, 2004 the AHLC concluded meetings with
the U.S. and 14 other donor countries. At the meeting, the PA was commended for its budgetary,
economic, and political reforms and additional meetings are slated for spring, 2005.
8 Palestinian PM Mahmoud Abbas’s speech before Palestinian Legislative Council, April 29,
2003. Negotiations Affairs Department, PLO available at [http://www.nad-plo.org].
9 The World Bank, Stagnation or Revival? Israeli Disengagement and Palestinian Economic
Prospects, December 2, 2004.
10 President Bush recently his intention to provide $350 million in assistance to the Palestinians,
of which $200 million will be included in the FY2005 Supplemental Request.
11 “Palestinians Expect Abbas to Bring Economic Prosperity,” Palestine Chronicle, January 9,
2005.

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occupation. Yet, some groups, most notably Hamas, have indicated pragmatism and
flexibility in recent statements vis-a-vis the PA and Israel. For example, a leading figure
within Hamas recently stated Hamas’s interest in joining the Palestinian national political
process.12 Secular groups like the Popular Front for the Liberation of Palestine (PFLP),
Democratic Front for the Liberation of Palestine (DFLP), and the People’s Party (formely
Palestine Communist Party) are often critical of PA policies but work alongside the PLO
in a loose political coalition, voicing dissent within the body politic. On January 3, 2005,
Abbas called on Hamas to stop firing rockets and mortars at Israeli targets. By
condemning violent resistance to the occupation, many analysts assert Abbas may alienate
militant portions of the opposition. One Hamas leader characterized Abbas’s comments
as “a knife in the back of Palestinian resistance.”13
Peace and the ‘Road Map’
Violence. The sustained violence since September 2000 has greatly affected both
Palestinians and Israelis.14 At the June 2003 Aqaba Summit, Abbas stated, “there will be
no military solution for this conflict, so we repeat our renunciation of terrorism against
the Israelis wherever they might be.”15 Since then, Abbas has continually denounced
violence as a means to achieve independence, instead calling for popular and social means
to end the Israeli occupation.
Congress has noted President Abbas’s denunciation of terror as a means of securing
a Palestinian state.16 Israel briefly ended talks with Abbas (January 14-19, 2005) after a
bombing occurred at a crossing point between Israel and Gaza. This was seen, by some,
as indicative of Prime Minister Sharon’s mistrust of Abbas’s commitment to ending
violence and as an effort to push Abbas to act rapidly. Still others see Abbas as a fully
committed partner for peace, as evidenced by his deployment of security forces in Gaza
to halt attacks on Israeli settlements and military personnel. On February 8, 2005,
President Abbas and Prime Minister Sharon discussed Israeli-Palestinian security
measures to decrease armed violence. As a result of the meeting, Prime Minister Sharon
and President Abbas agreed, in principle, to a unilateral cease-fire.17 On February 25,
12 Arnon Regular, “Top Hamas Man Says Group May Accept Truce with Israel,” Ha’aretz,
December 4, 2004.
13 “HAMAS, Fatah Exchange Threats Over Abu-Mazin’s Censure of Attacks,” Ha’aretz, January
10, 2005.
14 Since 2000 over 3,000 Palestinians and nearly 1000 Israelis have been killed. The total number
of Palestinians injured ranges between 20-35,000 and between 5- 6,000 Israelis. Available at
[http://www.un.org/News/Press/docs/2004/sc8166.doc.htm].
15 “Abbas Says Armed Intifada Has to Stop,” Al-Sharq al-Awsat (London), December 14, 2004.
16 H.Res. 56 (passed on February 2, 2005) acknowledged that President Abbas disavows
terrorism. S.Res27 (passed on February 1, 2005) recognized Abbas’s commitments to peaceful
coexistence with Israel.
17 Steven R. Weisman and Terence Neilan, “Israeli and Palestinian Leaders Meet for 1st Time
in 4 Years,” New York Times, February 8, 2005.

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2005, a bomb killed at least five Israelis in Tel Aviv. Secretary of State Rice cited firm
evident that Islamic Jihad, headquartered in Syria, were involved in the attack.18
Israeli Closures. In the spring of 2002, Israel implemented a series of village,
town, and city closures and curfews. Many claim that restricting the flow of Palestinian
goods and people within and between the West Bank, Gaza, and Israel, hampers
Palestinian economic activity and may increase militancy. Others cite Israel’s need to
ensure its citizens protection by drastically limiting the movement and supplies of
Palestinian militants. In his presidential inaugural address, Abbas stated “our hand is
outstretched to the Israeli partner to make peace, not with words but with deeds, and put
an end to closures, arrests and the building of the fence.”19 [see below]
Israeli Separation Barrier. In April 2002, in reaction to Palestinian suicide-
bombings, Israel approved the construction of a barrier between Israeli and Palestinian-
held territory, largely built inside the Palestinian side of the “Green Line” (the 1967 cease-
fire line separating the West Bank from Israel).20 Some Israelis contend their security
depends on the construction of the barrier, noting decreased suicide bombings in Israel
since the barrier’s construction. Critics of the barrier see it as de facto Israeli annexation
of portions of the occupied West Bank. President Abbas claims “the removal of the wall
will be among the first issues that our government will address because, without its
removal, Israel will effectively destroy the Roadmap.”21
Israeli-Palestinian Mutual Commitments. Released on April 30, 2003, the
framework (or “Road Map”) envisions a three-stage process comprising reciprocal steps
leading to a viable Palestinian state alongside a secure Israel by 2009.22 President Abbas
has expressed support for the Road Map and its implementation.
Prisoner Release. A core domestic issue for Abbas is the release of Palestinian
political prisoners. Abbas has publicly stated “in principle we work for every prisoner to
be released, but what we are looking for is the release of those who have spent many long
years in jail.”23 On December 27, 2004, an agreement between Egypt, Israel, and the PA
culminated with the release of 159 Palestinian political prisoners; on January 3, 2005,
Israeli Cabinet ministers approved the release of an additional 900 Palestinian prisoners
and on February 21, 2005 the first 500 prisoners were released. Some experts see this
18 Ha’aretz Service, “Rice: Evidence Shows TA Bombing Planned in Syria,” Haa’retz, March 1,
2005.
19 Arnon Regular, “Abbas Says Wants Road Map Implemented in Full ,” Ha’aretz, January 16,
2005.
20 The half-way finished barrier (or wall/fence) is comprised of twenty-five-foot-high concrete
slabs, razor wire, earthen berms, towers, electrified fencing, and military roads.
21 Palestinian Prime Minister Mahmoud Abbas’s speech before Palestinian Legislative Council,
April 29, 2003. Negotiations Affairs Department, PLO, available at [http://www.nad-plo.org].
22 Available at [http://www.state.gov/r/pa/prs/ps/2003/20062.htm]
23 “Abbas, Qurei Urge Release of All Palestinian Detainees,” Palestine Media Watch, December
28, 2004.

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development merely as an Israeli gesture of goodwill towards Abbas; others, view the
release as a first step toward the release of the estimated 7,000 political prisoners.
East Jerusalem. Israel claims Jerusalem as its undivided capital, while
Palestinians seek to establish a capital for their state in East Jerusalem. Abbas repeatedly
has called for the capital of any Palestinian state be located in the eastern portion of
Jerusalem.
Refugees. President Abbas, himself a refugee, has made several unequivocal
statements in support of the right of return for Palestinian refugees, claiming Palestinian
refugees and their descendants from the war that followed Israel’s creation in 1948 have
the right to return to their original homes.24 Some have suggested that Abbas may
concede portions of the refugee issue.25
Issues for Congress
U.S. aid to Palestine.26 Since the Oslo Accord of 1993, Congress has authorized
over $1.5 billion in assistance to the Palestinians, generally distributed via third parties
such as the U.S. Agency for International Development and private voluntary
organizations. Funds are also distributed to Palestinians through the U.N. Refugee Works
Agency. The Executive Branch has granted assistance directly to the PA on three
occasions: in 1994 $10million was distributed to the PA through the Holst Fund at the
World Bank; on July 8, 2003, $20 million was granted to the PA for infrastructure
projects; and on December 8, 2004, President Bush approved $20 million for Palestinian
utility payments to Israel.27
Israeli-Palestinian Peace.28 Some analysts suggest the Bush Administration
initially sought a less visible role than the Clinton Administration in Israeli-Palestinian
affairs. Recent developments such as the death of Arafat and election of Abbas, Israeli
plan for unilateral withdrawal from the Gaza Strip, and U.S. commitments to broader
Middle East democratization are often cited as factors for renewed U.S. emphasis on the
peace process. After his successful re-election, President Bush stated that the
establishment of a Palestinian state, living next to a secure Israel, is a top priority.29
24 “Abbas: Refugees Will Return to Israel,” Associated Press, January 4, 2005.
25 David Remnick, “Checkpoint,” The New Yorker, February 7, 2005.
26 For a more detailed analysis of U.S.-Palestinian aid See, CRS Report RL32260, U.S. Foreign
Assistance to the Middle East: Historical Background, Recent Trends, and FY2005 Funding, by
Jeremy M. Sharp.
27 Congress prohibits direct funding for the PA, but provides for a Presidential waiver if the
President finds such aid is in US national interest. See H.R. 4818 (P.L. 108-447), Consolidated
Appropriations Act, FY2005, Limitation on Assistance to the Palestinian Authority, sec. 550.
28 See CRS Issue Brief IB91137, The Middle East Peace Talks, by Carol Migdalovitz.
29 “Bush Vows to Work for Palestinian State,” CNN, November 12, 2004.

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