Gaza Strip utilities. The Gaza Strip acquired its current northern and eastern boundaries at the cessation of fighting in the 1948 war, confirmed by the Israel–Egypt Armistice Agreement on 24 February 1949. Article V of the Agreement declared that the demarcation line was not to be an international border. At first the Gaza Strip was officially administered by the All-Palestine Government, established by the Arab League in September 1948. All-Palestine in the Gaza Strip was managed under the military authority of Egypt, functioning as a puppet state, until it officially merged into the United Arab Republic and dissolved in 1959. From the
Gaza Strip closures decreased over the next few years. In 1998, Israel implemented new policies to ease security procedures and allow somewhat freer movement of Gazan goods and labor into Israel. These changes led to three years of economic recovery in the Gaza Strip, disrupted by the outbreak of the al-Aqsa Intifada in the last quarter of 2000. Before the second Palestinian uprising in September 2000, around 25,000 workers from the Gaza Strip (about 2% of the population) worked in Israel on a daily basis. The Second Intifada led to a steep decline in the economy of Gaza, which was heavily reliant