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The Gaza War once again highlighted the difficult role of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA). Since its creation 60 years ago, UNRWA has developed into the largest provider of social service for the Palestinians, as well as into the main employer of Palestinian refugees. However, the agency carries out its work in a highly politicised environment, having led to disapproval of some of its activities and even a general questioning of its work. Especially in the Gaza Strip it has been subject to severe criticism. This article discusses the challenges that the agency is facing in the light of failed peace negotiations, growing demands and a chronic shortage of funds, the increasingly sensitive political environment and the serious humanitarian situation that developed in the aftermath of the Hamas takeover of the Gaza Strip in June 2007. [ABSTRACT FROM AUTHOR]

In the past eight years, 8,000 rockets and mortar bombs fired from the Gaza Strip have hit Israeli territory. Compared to the suicide bombings of the past, they seem an almost negligible threat. However, the rocket fire may well turn into a strategic threat which may also prevent external pressure on Israel to end the occupation of Palestinian territory. Based on this assessment, this article discusses various options to cope with this variety of guerrilla warfare. Taking the possession and firing of rockets as a prominent case of militancy, the article shows that the approaches taken so far do not provide satisfactory answers to the problem, then suggests alternatives, namely engaging Hamas, to deal with the threat, and links them to Palestinian institution building as part of the peace process. [ABSTRACT FROM AUTHOR]