Abir Dandis, the mother of the two girls who were murdered in the Negev town of Al-Fura’a last week, couldn't find a police officer to listen to her warnings, neither in Arad nor in Ma’ale Adumim. Both police stations operate in areas where Israel wants to gather the Bedouin into permanent communities, against their will, in order to clear more land for Jewish communities. The dismissive treatment Dandis received shows how the Bedouin are considered simply to be lawbreakers by their very nature. But as a resident of the West Bank asking for help for her daughters, whose father was Israeli, Dandis faced the legal-bureaucratic maze created by the Oslo Accords.

The Palestinian police is not allowed to arrest Israeli civilians. It must hand suspects over to the Israel Police. The Palestinian police complain that in cases of Israelis suspected of committing crimes against Palestinian residents, the Israel Police tend not to investigate or prosecute them.

In addition, the town of Al-Azaria, where Dandis lives, is in Area B, under Palestinian civilian authority and Israeli security authority. According to the testimony of Palestinian residents, neither the IDF nor the Israel Police has any interest in internal Palestinian crime even though they have both the authority and the obligation to act in Area B.

The Palestinian police are limited in what it can do in Area B. Bringing in reinforcements or carrying weapons in emergency situations requires coordination with, and obtaining permission from, the IDF. If Dandis fears that the man who murdered her daughters is going to attack her as well, she has plenty of reason to fear that she will not receive appropriate, immediate police protection from either the Israelis or the Palestinians.

Dandis told Jack Khoury of Haaretz that the Ma’ale Adumim police referred her to the Palestinian Civil Affairs Coordination and Liaison Committee. Theoretically, this committee (which is subordinate to the Civil Affairs Ministry) is the logical place to go for such matters. Its parallel agency in Israel is the Civilian Liaison Committee (which is part of the Coordination and Liaison Administration - a part of the Civil Administration under the Coordinator of Government Activities in the Territories).

In their meetings, they are supposed to discuss matters such as settlers’ complaints about the high volume of the loudspeakers at mosques or Palestinians’ complaints about attacks by settlers. But the Palestinians see the Liaison Committee as a place to submit requests for permission to travel to Israel, and get the impression that its clerks do not have much power when faced with their Israeli counterparts. In any case, the coordination process is cumbersome and long.

The Palestinian police has a family welfare unit, and activists in Palestinian women’s organizations say that in recent years, its performance has improved. But, as stated, it has no authority over Israeli civilians and residents. Several non-governmental women’s groups also operate in the West Bank and in East Jerusalem, and women in similar situations approach them for help. The manager of one such organization told Haaretz that Dandis also fell victim to this confusing duplication of procedures and laws. Had Dandis approached her, she said, she would have referred her to Adalah, the Legal Center for Arab Minority Rights in Israel, which has expertise in navigating Israel’s laws and authorities.

John Kerry revealed his long-awaited plan for peace in the Middle East on Sunday, hinging on a $4bn (£2.6bn) investment in the Palestinian private sector.

The US secretary of state, speaking at the World Economic Forum on the Jordanian shores of the Dead Sea, told an audience including Israeli president Shimon Peres and Palestinian leader Mahmoud Abbas that an independent Palestinian economy is essential to achieving a sustainable peace.

Speaking under the conference banner "Breaking the Impasse", Kerry announced a plan that he promised would be "bigger, bolder and more ambitious" than anything since the Oslo accords, more than 20 years ago.

Tony Blair is to lead a group of private sector leaders in devising a plan to release the Palestinian economy from its dependence on international donors. The initial findings of Blair's taskforce, Kerry boasted, were "stunning", predicting a 50% increase in Palestinian GDP over three years, a cut of two-thirds in unemployment rates and almost double the Palestinian median wage. Currently, 40% of the Palestinian economy is supplied by donor aid.

Kerry assured Abbas that the economic plan was not a substitute for a political solution, which remains the US's "top priority".

Peres, who had taken the stage just minutes before, also issued a personal plea to his Palestinian counterpart to return to the negotiations.

"Let me say to my dear friend President Abbas," Peres said, "Should we really dance around the table? Lets sit together. You'll be surprised how much can be achieved in open, direct and organised meetings."

Thick locks hug the front gates of shuttered shops, now covered in graffiti and dust from lack of use. Only a handful of customers pass along the dimly lit road, sometimes stopping to check the ripeness of fruits and vegetables, or ordering meat in near-empty butcher shops.

“All the shops are closed. I’m the only one open. This used to be the best place,” said 64-year-old Mustafa Sunocret, selling vegetables out of a small storefront in the marketplace near his family’s home in the Muslim quarter of Jerusalem’s Old City.

Amidst the brightly coloured scarves, clothes and carpets, ceramic pottery and religious souvenirs filling the shops of Jerusalem’s historic Old City, Palestinian merchants are struggling to keep their businesses alive.

Faced with worsening health problems, Sunocret told IPS that he cannot work outside of the Old City, even as the cost of maintaining his shop, with high electricity, water and municipal tax bills to pay, weighs on him.

“I only have this shop,” he said. “There is no other work. I’m tired.”

Abed Ajloni, the owner of an antiques shop in the Old City, owes the Jerusalem municipality 250,000 Israeli shekels (68,300 U.S. dollars) in taxes. He told IPS that almost every day, the city’s tax collectors come into the Old City, accompanied by Israeli police and soldiers, to pressure people there to pay.

“It feels like they’re coming again to occupy the city, with the soldiers and police,” Ajloni, who has owned the same shop for 35 years, told IPS. “But where can I go? What can I do? All my life I was in this place.”

He added, “Does Jerusalem belong to us, or to someone else? Who’s responsible for Jerusalem? Who?”

Illegal annexation

Israel occupied East Jerusalem, including the Old City, in 1967. In July 1980, it passed a law stating that “Jerusalem, complete and united, is the capital of Israel”. But Israel’s annexation of East Jerusalem and subsequent application of Israeli laws over the entire city remain unrecognised by the international community.

Under international law, East Jerusalem is considered occupied territory – along with the West Bank, Gaza Strip and Syrian Golan Heights – and Palestinian residents of the city are protected under the Fourth Geneva Convention.

Jerusalem has historically been the economic, political and cultural centre of life for the entire Palestinian population. But after decades languishing under destructive Israeli policies meant to isolate the city from the rest of the Occupied Territories and a lack of municipal services and investment, East Jerusalem has slipped into a state of poverty and neglect.

“After some 45 years of occupation, Arab Jerusalemites suffer from political and cultural schizophrenia, simultaneously connected with and isolated from their two hinterlands: Ramallah and the West Bank to their east, West Jerusalem and Israel to the west,” the International Crisis Group recently wrote.

Israeli restrictions on planning and building, home demolitions, lack of investment in education and jobs, construction of an eight-foot-high separation barrier between and around Palestinian neighbourhoods and the creation of a permit system to enter Jerusalem have all contributed to the city’s isolation.

Formal Palestinian political groups have also been banned from the city, and between 2001-2009, Israel closed an estimated 26 organisations, including the former Palestinian Liberation Organisation headquarters in Jerusalem, the Orient House and the Jerusalem Chamber of Commerce.

Extreme poverty

Israel’s policies have also led to higher prices for basic goods and services and forced many Palestinian business owners to close shop and move to Ramallah or other Palestinian neighbourhoods on the other side of the wall. Many Palestinian Jerusalemites also prefer to do their shopping in the West Bank, or in West Jerusalem, where prices are lower.

While Palestinians constitute 39 percent of the city’s population today, almost 80 percent of East Jerusalem residents, including 85 percent of children, live below the poverty line.

“How could you develop [an] economy if you don’t control your resources? How could you develop [an] economy if you don’t have any control of your borders?” said Zakaria Odeh, director of the Civic Coalition for Palestinian Rights in Jerusalem, of “this kind of fragmentation, checkpoints, closure”.

“Without freedom of movement of goods and human beings, how could you develop an economy?” he asked.

“You can’t talk about independent economy in Jerusalem or the West Bank or in all of Palestine without a political solution. We don’t have a Palestinian economy; we have economic activities. That’s all we have,” Odeh told IPS.

Israel’s separation barrier alone, according to a new report by the United Nations Conference on Trade and Development (UNCTD), has caused a direct loss of over one billion dollars to Palestinians in Jerusalem, and continues to incur 200 million dollars per year in lost opportunities.

Israel’s severing and control over the Jerusalem-Jericho road – the historical trade route that connected Jerusalem to the rest of the West Bank and Middle East – has also contributed to the city’s economic downturn.

Separation of Jerusalem from West Bank

Before the First Intifada (Arabic for “uprising”) began in the late 1980s, East Jerusalem contributed approximately 14 to 15 percent of the gross domestic product (GDP) in the Occupied Palestinian territories (OPT). By 2000, that number had dropped to less than eight percent; in 2010, the East Jerusalem economy, compared to the rest of the OPT, was estimated at only seven percent.

“Economic separation resulted in the contraction in the relative size of the East Jerusalem economy, its detachment from the remaining OPT and the gradual redirection of East Jerusalem employment towards the Israeli labour market,” the U.N. report found.

Decades ago, Israel adopted a policy to maintain a so-called “demographic balance” in Jerusalem and attempt to limit Palestinian residents of the city to 26.5 percent or less of the total population.

To maintain this composition, Israel built numerous Jewish-Israeli settlements inside and in a ring around Jerusalem and changed the municipal boundaries to encompass Jewish neighbourhoods while excluding Palestinian ones.

It is now estimated that 90,000 Palestinians holding Jerusalem residency rights live on the other side of the separation barrier and must cross through Israeli checkpoints in order to reach Jerusalem for school, medical treatment, work, and other services.

“Israel is using all kinds of tools to push the Palestinians to leave; sometimes they are visible, and sometimes invisible tools,” explained Ziad al-Hammouri, director of the Jerusalem Centre for Social and Economic Rights (JCSER).

Al-Hammouri told IPS that at least 25 percent of the 1,000 Palestinian shops in the Old City were closed in recent years as a result of high municipal taxes and a lack of customers. “Taxation is an invisible tool…as dangerous as revoking ID cards and demolishing houses,” he said. “Israel will use this as pressure and as a tool in the future to confiscate these shops and properties.”

President Mahmoud Abbas is studying a US proposal for talks between the Palestinians and Israel at a level below full-scale negotiations between their leaders, a Palestinian official said on Monday.

The proposal is the latest idea by US Middle East peace envoy George Mitchell to bring about a resumption of peace talks that have been frozen for 13 months.

Palestinian sources familiar with Mitchell's weekend round of diplomacy said he had proposed confidence-building measures that would improve conditions in the Palestinian territories.

Israeli officials, noting that Prime Minister Benjamin Netanyahu had on Sunday welcomed unspecified "new ideas" for talks from Mitchell, said their government stood ready to take part in US-mediated discussions with Palestinian officials.

The confidence-building steps cited by Palestinians as areas they would be keen to discuss included the transfer of authority from the Israeli army to the Palestinians in more of the West Bank's territory, the removal of some Israeli checkpoints and release of a number of Palestinian prisoners.

These measures would be discussed at a meeting of senior ministers from each side, but not the top leaders.

Israeli political sources said they were not aware of specific secondary issues, such as prisoners, that might be discussed with the Palestinians - they spoke rather of talks at a ministerial or lower level that would look at narrowing differences over "core issues" in suspended peace negotiations.

"Holding a low-level meeting with the Israelis that tackles issues related to the daily life of Palestinians will not be an alternative to political negotiations," said the Palestinian official, who spoke on condition of anonymity.

'Interesting ideas'

Abbas, who is facing US pressure to return to peace talks, would discuss Mitchell's ideas with Arab leaders over the coming days "so that the Palestinian position will be backed by the Arabs", the official said.

Netanyahu said on Sunday he had heard "some interesting ideas for renewing the (peace) process" from Mitchell.

"I also expressed my hope that these new ideas will allow for the renewal of the process. Certainly if the Palestinians express a similar readiness, then we will find ourselves in a diplomatic process," Netanyahu said.

A spokesman for the prime minister declined comment on Monday on the content of discussions with Mitchell

The next 24 hours will be critical in terms of the prisoner exchange deal with Israel, senior Hamas sources told Arab media on Wednesday morning. The organization's leaders, who left Cairo on Tuesday evening, are meeting in the offices of Hamas' political bureau in Damascus to decide whether to accept Jerusalem's latest offer.

According to one of the sources, who spoke to London-based Arabic-language al-Hayat newspaper, the organization's leaders – including those who arrived from Gaza - are at odds over the issue. Some believe Hamas should insist on releasing every single prisoner on the list handed over to Israel, while others hold a more pragmatic approach and understand that not everything can be achieved in the negotiations.

According to another newspaper, al-Sharq al-Awsat, the deal is being delayed over four names of arch-terrorists, led by Ibrahim Hamed, who was arrested in 2006 for his involvement in deadly terror attacks. Israel, according to some of the reports, is only willing to release him if he is deported outside the Palestinian territories.

The three other prisoners delaying the deal, according to the report, are Abdullah Barghouti, Abbas al-Seid, and Ahmed Saadat.

One of Hamas' senior members, Dr. Khalil Al-Hayya, said Tuesday night that his movement continued to hold on to its demands in terms of the deal securing the release of kidnapped soldier Gilad Shalit. He warned that Israeli stubbornness in the face of Hamas' stipulations could torpedo the swap.

"It appears that internal Israeli problems are having a negative influence, but we are waiting for the coming hours to see if there will be a deal by the weekend," said another source.

Noam Shalit goes to rabbi

Meanwhile, Israel is waiting for Hamas' response and attempting to lower expectations. Prime Minister Benjamin Netanyahu promised Tuesday that if and when a deal is finalized, it would be brought to the government's approval "and to a public discourse."

Ministers are expected to convene Wednesday for a pre-scheduled diplomatic-security cabinet meeting, where they may learn more about the deal's outline and timetable.

The Shalit family members are continuing their battle to have their son released. Gilad's father, Noam, is expected to meet Wednesday with Ministers Yuval Steinitz (Likud) and Uzi Landau (Yisrael Beiteinu) in an attempt to change their minds and have them vote in favor of a possible deal. He will later try to gain the support of Israel's chief rabbis as well.

The Palestinian prisoners' families are also exerting heavy pressures in a bid to find out whether their sons are included on the list of inmates slated to be released. It is still unclear whether former Fatah Secretary-General in the West Bank Marwan Barghouti, who is serving several life terms for murder, will be freed as part of the deal.

The wife of Ahmed Saadat, the secretary-general of the Popular Front for the Liberation of Palestine who is jailed in Israel for planning the murder of Minister Rehavam Ze'evi, says she has not received any information from an official source that her husband is expected to be released in exchange for Shalit.

"My husband prefers the deal to include veteran prisoners and those sentenced for longer jail terms than him. In addition, he would like to see sick prisoners, women and minors released before him," Abla Saadat said.

EU Foreign Policy chief Javier Solana said the European Union's goal is to establish a Palestinian state in the 1967 borders.

Speaking in Ramallah on Wednesday, Solana said the sooner this happens, the better.

Solana met with Palestinian President Mahmoud Abbas Wednesday morning, and is scheduled to meet later with Prime Minister Salam Fayyad.

His visit to the Palestinian Authority is aimed at highlighting the EU's commitment to the region and supporting the PA leadership.

Solana is slated to visit Israel on Thursday, and meet with Israeli officials.

During his visit to Ramallah, Solana said there may be a need to exchange certain territories, but he said this should not disrupt the territory's continuity.

He said EU's stance in the matter is similar to that of the Quartet on the Middle East, and expressed his support of Abbas' efforts to unite the Palestinian people in light of the current dispute between his Fatah party and Hamas.

Solana's meeting with Abbas came before the latter's trip to Egypt. After the meeting, Solana said that Abbas took off to Cairo where reconciliation talks between the two Palestinian factions are ongoing, and stressed that Abbas is dedicated to closing a deal.

Later Wednesday, Solana told the Israeli Presidential Conference in Jerusalem that the world must not accept an Iranian nuclear bomb. According to Solana, "Tomorrow is today and we have no time to lose."

As for the peace process in the Middle East, Solana called for limited negotiations. "The time to do it is now. Nothing has been done in the world without taking risks."

Turkish Foreign Minister Ahmet Davutoglu told CNN on Sunday that his country excluded Israel from a planned NATO military exercise partly due to its criticism of the IDF's winter offensive in Gaza.

Asked by CNN why Turkey excluded Israel from the exercise, Davutoglu said, "We hope that the situation in Gaza will be improved, that the situation will be back to the diplomatic track. And that will create a new atmosphere in Turkish-Israeli relations as well. But in the existing situation, of course, we are criticizing this approach, (the) Israeli approach."

Turkey canceled an annual joint air force drill that was to have taken place this week because it opposed Israeli participation, the Israeli military said, in the latest sign of deteriorating relations between the two countries.

Davutoglu told CNN that instead of the NATO exercise, Turkey would be conducting "a national military exercise now after consultations with all the parties involved."

Turkey, a secular country ruled by an Islamic-oriented party, had long been Israel's best friend in the Muslim world. But ties have cooled sharply over Turkish Prime Minister Recep Tayyip Erdogan's sharp criticism of Israel's winter war in the Gaza Strip.

The Israel Air Force recently concluded its preparations for the drill, but several days ago the Israel Defense Forces was informed that it would not be invited to take part in the exercise this year.

A spokeswoman for the US Embassy in Ankara was quoted by CNN as saying that the United States and its allies postponed the exercise "in hopes of re-scheduling it."

"We look at this as a postponement, not a cancellation," Embassy spokeswoman Deborah Guido told CNN.