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Growing a state: Palestinians build a homeland

There is much instability in the Middle East these days.

But there is also a glimmer of hope. Palestinians are making progress. The Palestinian Authority is laying the groundwork and forming institutions toward statehood. The economy is slowly growing — all with the help of donor nations.

On Wednesday, Secretary of State Hillary Clinton announced that the U.S. was transferring another $150 million in assistance to the Palestinian Authority. On hand, via satellite, was Palestinian Prime Minister Salam Fayyad.  Much of this work is occurring in the West Bank, where more than two million Palestinians live uncomfortably beside about 400,000 Jewish settlers. The more densely populated Gaza strip is run by Hamas, the Palestinian Authority’s rival. Hamas denies Israel’s existence and suffers international isolation.

Need to Know sent correspondent Martin Seemungal to see how the West Bank is developing.