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The basis of organizing the relations between central authority and local authority institutions in different countries is decided within the context of the philosophical and theoretical approaches to political systems and methods of governance. There are two main models regulating the relationship between central and local government. The first model is based on a philosophy that favors the existence of one unified authority regulating the various administrative and political spheres of life. In such a model (integration) the authority would be a vertical one, i.e. top-down control. In the integration model, the central authority would incorporate the other (i.e. the local) authority into it, so that the local authority would carry out its decisions with no independence at all. The second model (separation) is based on a theoretical-philosophical standpoint aimed at the enhancement of democratic rule. This model horizontally divides the decision-making process between the executive, legislative, and judicial authorities, in addition to an element of vertical division between central government and local government. In this model, all parties concerned are, in fact, participants in the decision and policy making process. Consequently, the process of decision-making remains incomplete until the relevant parties are collectively involved to form a unified front, indicating the continuation of the political process. The relationship between the central and local government becomes a legal one, characterized by parity without central government hegemony over the decisions of local government. In the separation model the local government functions in a decentralized environment, and has designated authorities and responsibilities separate from those of central government. In the Palestinian model, the local government institutions were exposed to too many pressures from the various occupying powers that have ruled Palestine for more than 100 years. During this period, there was no Palestinian authority that managed local government in Palestine . The Palestinian National Authority inherited municipalities and local councils that suffer from many hindrances, an outcome of the Israeli occupation and its political objectives. Israel intended to destroy local infrastructure and to join the Palestinian economy to the Israeli economy for the benefit of Israel . There are many factors that restrict the ability of local government institutions to develop themselves. First of all the political culture that dominated Palestinian society influenced the citizens view of the municipalities negatively. Second, family and kinship relationships also restrict the local government's ability to develop. The question, of whether decentralization is an internal or external need, leads us to the fact that firstly every country starts its history with centralization, and secondly there is no state which is purely either decentralized or centralized. In the Palestinian case, the PNA applied centralization to minimize the effect of the Oslo Accords, which contributed to the division of Palestinian land. The effect of the Oslo Accords appeared in the ‘Tunnel Events' in 1998 and in the recent Intifada (2000). The Palestinian localities become, as a result of Israeli actions, like small ‘islands'. Decentralization is in theory an internal need, not an external one, and it supposed to be implemented according to Palestinian needs. The Palestinians must formulate their own plan for the decentralization of power and the establishment of effective local organizations. President Yasser Arafat issued Presidential Decree No. 1 that stated that the laws, regulations and orders that were applied before June 5th, 1967, continue to be valid in the West Bank and Gaza until they are unified. On the administrative side, the municipalities in the West Bank have suffered as a result of the occupation for100 years. Laws, issued by the occupation authorities, gave full power to the mayors and weakened the power of the councilors. Corruption and mismanagement spread throughout the municipalities because of these laws. The mayor had the right to employ and remove any one from the municipality. Decentralization is not important to citizens who are more concerned with political issues. The PNA is not concerned with decentralization but with the occupation and the reform agenda arose because of external pressure. It was proposed that the PNA start to implement decentralization gradually with civic institutions and international organizations in Palestine The implementation of decentralization does not mean the central authority's power is reduced, but rather it helps the central authority to focus on the important issues while the municipalities focus on the local issues The legislative authority is responsible for implementing decentralization in Palestine and it is the only authority, which could put pressure upon the executive authority on any issue. In the end, whether to apply decentralization or centralization is dependent upon the circumstances of the state. It is necessary to focus on centralization at the resistance stage before moving to decentralization during the state-building stage.
The Ministry of Local Government must change existing laws if it wants to create strong municipalities. To make the Palestinian experience successful, the Ministry of Local Government must focus on the effect of decentralization on the relationship between the municipalities and central government. The Ministry of Local Government must formulate new plans and programs for developing the municipalities taking into consideration the following points:
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