This is just an excuse for doing nothing. What was the PA doing since 1993 when it took control of Gaza and the West bank? Building institutions is not the issue, having a clear vision of the new state is what is important. When Algeria was a French colony, they declared a government in absentia. If you can dream it, you can achieve it. What the Palestinians need is leadership with a clear and sharp vision, not a leadership that is more concerned about how they seem to the world. Nelson Mandela stayed in jail for 28 years, he could have been release long time before had he agreed to give up his prinicipal and renounce violence as means of liberation.
Palestinian teen arrested for allegedly rioting in East Jerusalem (Haaretz)
from the article: Palestinian PM: Declaration of statehood just a formality