Since the 1990s Israel has been trying to give them a state, to varying degrees. They got civil and security autonomy in Areas A of the West Bank, for example. And Israel pulled her citizens out of the Gaza strip in 2005.
The problem is that the PA, who rules the West Bank are extremely corrupt, and Hamas is committed to Israel's destruction. Neither side has been actually performing all the functions of state, UNRWA has been doing that.
The problem is that the PA, who rules the West Bank are extremely corrupt, and Hamas is committed to Israel's destruction. Neither side has been actually performing all the functions of state, UNRWA has been doing that.