The Palestinian leadership is still seeking a political formula to reenter direct negotiations with Israel. There is no doubt that the Palestinians will agree to this, largely because the United States is insisting on it. However, Palestinian President Mahmoud Abbas and his colleagues feel very exposed politically because they have almost nothing to show for diplomatic efforts in the proximity talks and are facing considerable domestic opposition to such a move.

In the world of Palestinian politics, the recent weeks have been a study in contrasts. The international media has trained its focus off the shores of Gaza, where the flotilla fiasco has generated dramatic images of dead civilians and battered Israeli soldiers. The politics of this incident reflect the traditional sturm und drang of the Palestinian national movement: full of grand gestures and transformative ambitions that might result in bloodshed and embarrassment for Israel, but make no substantive contribution to Palestinian liberation.

The Obama administration was successful in arranging for the resumption of Palestinian-Israeli negotiations through “proximity talks”, which began last week, but expectations in all quarters are correctly low for any near-term breakthrough. Consequently, Palestinians have been systematically developing a new set of peaceful strategies to achieve independence and advance a resolution to the conflict.

Two weeks ago the Palestinian Authority issued a detailed budget for the state and institution-building programme it adopted last August. The programme calls for Palestinians to unilaterally build the administrative, economic and institutional framework of an independent state in spite of the Israeli occupation and as a peaceful, constructive means of countering it.