As stated by Prime Minister Netanyahu in July 2009, Israel is committed to a two state solution which will be achieved through a negotiable bilateral agreement. Israel considers the development of the Palestinian economy a challenge shared by Israel, the Palestinian Authority, and the international community.

Israel recognizes the importance of international support to projects in the West Bank in the areas of economic development, capacity building and the security and civil sectors and supports efforts by the international community to promote Palestinian development.

This Report presents a series of steps and actions undertaken by Israel during 2009 and the beginning of 2010, which were intended to promote and substantially improve the West Bank's economy, alongside building security and other capacities. These measures were taken in parallel with a broader diplomatic and economic effort led by the international community, and notwithstanding the security risks posed by continued Palestinian terrorist activity.

The Report also briefly addresses the situation in Gaza and Israel’s actions to facilitate efforts by the international community to meet humanitarian needs. Israel acts to support these efforts despite the fact that Gaza is a hostile territory controlled by Hamas, a terrorist organization supported by Iran, which continues to constitute a security threat to thousands of Israel citizens. As of the publication of this Report, Israeli soldier Gilad Shalit remains in captivity, and has been held by Hamas for almost four years.

This Report provides an overview of Israeli measures related to the main sectors listed below:

 Chapter One provides an overview of economic growth in the West Bank, Israeli efforts to boost the West Bank's economy and to enhance infrastructure projects.

 Chapter Two describes steps taken by Israel in order to facilitate and ease access and movement in the West Bank.

 Chapter Three outlines bilateral cooperation between the governments of Israel and the PA, including the operations of bilateral Israeli-Palestinian committees that convened during the period covered by the Report.

 Chapter Four presents the security challenges in the west bank and information on Israeli and international capacity building efforts in the security sector and the legal system.

 Finally, Chapter Five outlines Israeli efforts to support and facilitate humanitarian aid to Gaza.