Situation analysis 1. In November 2012, the United Nations General Assembly welcomed the State of Palestine as a nonmember observer State. The recent past has witnessed a resumed Israeli-Palestinian peace process alongside continued political division between the West Bank and Gaza. 2. The Palestinian Authority has made progress in building state institutions, yet its viability is challenged by serious financial constraints. Humanitarian needs remain in Gaza, Area C (62 per cent of the Israeli-administered West Bank), the seam zones, East Jerusalem, and communities affected by the separation wall beyond the reach of the Palestinian Government. A high proportion (26 per cent) of Palestinians are considered poor, with variations between 18 per cent of the population in the West Bank and 39 per cent in Gaza.