Oslo Accords
Despite historical marginalization and overwhelming disparities, many Palestinian citizens believed that their situation would improve with the signing of the Oslo Accords in 1993 between the State of Israel and the Palestinian Liberation Organization. However, the 1990s brought many shifts in the political atmosphere which affected the situation of the Palestinian minority. Under Labor-led governments, Arab political parties held a balance of power, and the government occasionally accounted for those Palestinian concerns that did not challenge the structure of the state. When the Likud or unity coalition governments held power, Palestinian citizens were faced with decreasing budgets, special programs exclusively established for Jewish communities and institutions, and heightened institutional discrimination.
These political shifts have been exacerbated by the problems that the Palestinian minority has faced post-Oslo. The promise and hopes that were briefly raised have not been met with concrete benefits for Palestinian citizens of Israel. In fact, the widely-held view that the peace process would act as a springboard to alleviating or at least addressing the problems of the Palestinian minority did not materialize. Palestinians in Israel found themselves excluded from the peace process, and their civic and socio-economic status unilaterally neglected. Indeed the Oslo Accords have redefined and limited the "Palestinian question" to the West Bank and Gaza Strip, excluding Palestinian citizens of Israel as well as the entire refugee population in the Diaspora from any substantive dialogue.
The realization that their concerns would not be met through the Oslo process brought an increase in political protest on the part of the Palestinian minority. Palestinians demonstrated in large numbers in 1998 in Umm al-Sahali following the court-ordered and state-executed demolition of Palestinian homes, and in Umm al-Fahem after the army attempted to expropriate Palestinian land for use as a military training area. Both protests resulted in violent clashes with the police. As a result of the events in Umm al-Fahem, which went on for three days, hundreds of Palestinians including students, were injured by tear gas, rubber-coated steel bullets and live ammunition after the police stormed the high school. Students also protested at universities, demonstrating on numerous issues such as tuition increases and other academic issues; violence against the Palestinian community; and national identity concerns.
The post-Oslo period has also been characterized by a substantial decline in economic stability of the Palestinian minority. The Palestinian community already faced a high rate of unemployment: as of July 2000, the localities with the highest rates of unemployment were all Arab, and the situation has worsened since the outbreak of the al-Aqsa Intifada. The ongoing high rate of unemployment compounds the ill effects of discrimination. The poverty statistics for the Palestinian minority are equally chilling, as after social security payments, 37.6% of Palestinian citizens of Israel remained below the poverty line in 1998-1999.