The head of the Palestinian Authority's emergency government, Prime Minister Salam Fayad, is developing an overall reform plan that will tackle security, the economy and welfare in an effort to "rescue" the West Bank from a fate similar to that of the Gaza Strip, where Hamas ousted Fatah and took control.

Fayad's plan is focused on improving the daily lives of Palestinians and not on negotiations with Israel.

Palestinian and Israeli sources say that Fayad's plan includes the establishment of a welfare support system through Palestinian Authority-run charity organizations. The Palestinian prime minister would like to compete with Hamas in an area in which Islamic charities have normally held a monopoly: welfare and charitable activities for Palestinians in dire need.

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The welfare net will include assistance for the poor, for the families of those wounded or killed, to orphans, will set up special schools, clinics, etc., with funding being provided by the international community.

In terms of the economy, Fayad, an economist by training, is planning a number of steps. The first is to guarantee that civil servants of the Palestinian Authority receive their wages regularly, both in an effort to build trust in the system but also in an effort to bolster the PA's credibility in the eyes of international donors and investors - that the PA can actually function.

The second step is gaining Israel's agreement to remove roadblocks. In talks with Defense Minister Ehud Barak and Foreign Minister Tzipi Livni, last week, Fayad explained that "the Palestinian economy is shrinking every year and is only surviving thanks to donor states."

Fayad argues that if Israel wants to contribute to the rehabilitation of the economy in the PA, it must dismantle some of the roadblocks in the West Bank and enable the transfer of goods.

Fayad is also planning a series of infrastructure and housing projects throughout the West Bank. Through $120 million in aid for the first months of 2008, promised by Western donor states at the time of the installation of his government, Fayad is planning the construction of new neighborhoods, roads, etc. Thousands of unemployed would become wage-earners, giving the Palestinian economy an important boost.

However, according to Fayad, "our problem was and has been political. Therefore, we must make changes in the security sphere."

He explained that it is impossible for the PA to function as long as there are armed gangs operating outside the law.

In an effort to curtail unauthorized gun ownership, Fayad and PA Chairman Mahmoud Abbas have declared their intention to take legal action against armed gangs. "There is no doubt that we have the right to resist, but we must do this in an organized fashion and we must do away with the chaos," Fayad explained.

However, Fayad aides said that the prime minister intends to deal with the issue of armed gangs through dialogue and not by engaging in a violent confrontation with them.

Fayad is also planning extensive reforms in the structure of Palestinian security forces, including the replacement of the leadership, instilling new, younger faces in the senior command levels and increasing training, in order to restore order in the West Bank.

The Palestinian prime minister has also been careful to coordinate his plans with Marwan Barghouti, the leader of the Tanzim who is currently in an Israeli prison.