The following excerpts are from the deliberations of a meeting of the IPS Research Committee held in London on 17-18 March 2000 to discuss the situation in the areas under the Palestinian Authority. The excerpts include a major statement by Azmi Shu'aybi, member of the Legislative Council and, until his resignation in late 1999 under pressure from Yasir Arafat, chairman of the council's budget committee, and a long comment by Khalil Shikaki, executive director of the Palestinian Center for Policy and Survey Research in Ramallah. The material, which was translated by Jenab Tutunji, sheds light on the obstacles facing institution building in the Palestinian entity.