Action on Palestinian development policy may be postponed by the weight of events on the ground. At the same time, however, even if greater stability is achieved, it does not necessarily mean that structural imbalances and distortions will simply recede, warns UNCTAD in its annual report on assistance to the Palestinian people. The report, which will be reviewed at the forthcoming meeting of UNCTAD’s governing body, the Trade and Development Board, Geneva, 4-15 October, notes that the 4.5% estimated growth in real GDP that occurred in 2003 is not sufficient to signal genuine recovery. Its sustainability is uncertain, subject to the implementation of the two-state solution. Read more about UNCTAD report on Palestinian economy calls for intensified donor commitment to development 

Israeli occupying troops have continued their attacks on Palestinian civilians in the northern Gaza Strip for the 5th consecutive day in disregard for the lives of Palestinian civilians. They have caused dozens of casualties among Palestinian civilians and have largely destroyed civilian facilities. On Saturday morning, 2 October 2004, Israeli occupying troops expanded their military operations in the Gaza Strip, especially in Beit Hanoun. Since the beginning of this latest offensive on the northern Gaza Strip, 45 Palestinians, including 21 civilians, 15 of whom are children, have been killed by Israeli troops. In addition, at least 250 Palestinians have been injured. Israeli troops have demolished dozens of homes and large areas of agricultural land. Read more about Israel pushes on with assault on Gaza 

Israeli forces carry out a wide-scaled invasion of northern Gaza. Forty-four Palestinians have been killed so far. Israeli forces destroyed numerous homes and private property. Ambulances are not allowed access. Residents in all besieged communities suffer from lack of food, water and medicines. The humanitarian situation deteriorates. Israeli forces destroyed homes in Jabalia, Beit Lahia and Beit Hanoun. An Israeli airplane fired a missile at a crowd in Tel Az Zatar, killing three civilians. Israeli tanks invaded Salah ad Din Street, isolating the Izba neighborhood in Beit Hanoun. Israeli forces fired at an ambulance in Jabalia. Read more about Gaza Daily Update, 10.00 PM 

Amnesty International is concerned for the safety of the Palestinian population in the Jabaliya refugee camp and elsewhere in the northern Gaza Strip, where the Israeli army is carrying out a large-scale offensive. In the past two days the Israeli army has killed more than 35 Palestinians, including several children and other unarmed residents who were not participating in armed confrontations with Israeli soldiers. Most of those killed and injured were hit by Israeli army tank fire and at least two were killed by a missile fired by a helicopter gunship. Amnesty International is concerned that the Israeli army’s use of excessive force in this latest incursion in the Gaza Strip will result in further loss of lives and wanton destruction of Palestinian homes and property. Read more about Amnesty: "Israeli army must respect human rights"