With the latest developments in the peace process, and the Israeli aggression on the PNA and the Palestinian public at large, much of the gains on the socio-economic conditions have received a severe blow. Since the beginning of the Intifada in September 2000, the Palestinian community is under one of the strictest closures, standards of living have deteriorated in a great deal, and the economy has lost more than a third of its value. Within the present conditions Palestinian households were mostly affected.

Given the day-to-day developments in the political realities of the Palestinian situation, this report provides an effective basis for analyzing the effects of border closures and other political upheaval to the living standards of the population. It also, provides a unique opportunity to track changes in living standards and poverty. This report is necessary as a basis for planning by the Palestinian National Authority and relevant donors as well as monitoring the policy effects.

PCBS conducted the poverty survey in the Palestinian Territory during December 2003. Data collection took place in December 2003. The survey based on a random sample of 3,725 households, of which 3,127 households completed the interview. The completed interviews are distributed by region as 1,899 in the West Bank and 1,228 in the Gaza Strip.

The classification of households according to their position below or above poverty line is being determined by using the official poverty line established in 1997 by the National Commision for Poverty Alleviation and on the information revealed by households about their consumption during December 2003. Both consumption and monthly income data was used to calculate and analyze poverty rates to show the variations that standards of living witnessed due to the variation of income, remittances, loans and social aids that households depend on.

- The relative poverty line and the absolute poverty line for a six-member household in the Palestinian Territory during December 2003 stood at NIS (New Israeli Shekels) 1,800 (about US$ 396) and 1,482 (about US$ 325) respectively

- According to consumption patterns, the results indicate that the rate of the total diffusion of poverty among Palestinian Households in the Palestinian Territory is 35.5 percent on December 2003. With 44.7 percent of households in Gaza Strip found to be poor , the poverty rate for Gaza was more higher than that of the West Bank rate of 30.9 percent.

- Refugee camps have the highest incidence of poverty overall. About one out of two households in refugee camps were poor, and this is larger than the rate of poverty in urban (32.0 percent) and rural (38.5 percent). But the higher incidence of poverty in the refugee camps is really due to higher incidence poverty in Gaza overall.

- Households relying on public assistance as their main source of income are much worse off compared to other households. Yet, many households who rely mainly on other sources of income make use of public assistance as a supplementary measure. This is indeed the case for the short-term poor, particularly those vulnerable to the erratic changes in the labor market, but public assistance is an important secondary source of income for other households suffering from some sort of permanent “inactivity” or exclusion. It is of particular policy importance to examine the relative status of those who receive public assistance regardless of its type relative to those who do not.

- The results indicate also that 80.3% of the poor households took various coping measures during the last month depending on delaying payment of bills. This was manifested in depending on monthly income by 62.1%.

- Results show that 52.4% of interviewed households reported that they received humanitarian assistance during December 2003 are poor, of which 43.6% in the West Bank and 64.7% in Gaza Strip.

- On the other hand, 58.2% of the poor households reported that they received assistance, they received assistance for one time only.

- About 10.5% of the poor households receiving humanitarian aid reported that the total amount of assistance received is less than NIS 100, while 26.0% of them have received NIS 100-199, and 45.6% have received more than NIS 300.

- The results reveal also that 45.2% of the total assistance is provided for the poor in cash and 38.1% in the form of food supplies

- The results reveal that 24.3% of the poor households reported the need for money as top priority in December 2003, while 23.8% of them reported the need for food and 19.6% of them expressed the need for work.

- To show the variations that standards of living witnessed due to the variation of income, remittances, loans and social aids that households depend on to face the current situation in the Palestinian Territory, Income data was used to calculate and analyze poverty rates,
Data on income poverty rate has the same implications as consumption poverty rates. Results indicate that the rate of the total diffusion of poverty among Palestinian Households in the Palestinian Territory is 67.6 percent during December 2003, while in the West Bank it is 62.6 percent and 77.5 percent in Gaza Strip. The income data showed that 75.1 percent of refugee camps households are poor and this is larger than the rate of poverty in urban areas (72.0 percent) and rural areas (63.4 percent). The results indicate also that 76.7% of the poor households, according to their monthly income, took various coping measures during the last month depending on delaying payment of bills. This was manifested in depending on monthly income by 68.5%. On the other hand, 85.2% of the poor households, according to their monthly income, reported that they received assistance, 60.0% of them reported that they received assistance for one time only.