Egypt allows 100 protesters into Gaza. 2009 saw a sharp drop in casualties in the occupied West Bank. Activists are helping civilians overcome the trauma of the Gaza war. Pres. Abbas says no effort will be spared to aid civilians in Gaza. A new report anticipates significant growth in the Palestinian economy. Ha'aretz reports that settlement construction is "booming" in the occupied West Bank, and runs a commentary saying Israel must tell settlers they can remain in a Palestinian state only as Palestinian citizens. PM Netanyahu proposes a peace summit. Authorities arrest, then release an Israeli settler in connection with last month's mosque arson. Palestinians say dramatic developments on peace are possible in the near future. The fate of jailed Fatah leader Marwan Barghouti may be key to an Israel-Hamas prisoner swap. The BBC says Gaza's economy has moved literally underground. American Jewish organizations back a former Somali official accused of human rights violations in an effort to protect Israel from lawsuits. Stalled peace talks have deepened the divide among Palestinians. The UAE manages to get humanitarian aid into Gaza. Backlash over the Gaza war has affected Israel's diplomacy. Ghassan Khatib says the two state solution is still alive, but being killed by Israeli settlement activity.

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