Palestinians are ready to govern their own independent state, according to a study by the United Nations.

The report admired the work of Palestinian leader Mahmoud Abbas and noted The Palestinian Authority (PA) has successfully constructed some institutions and public services – including governance, rule of law, health and social services, and infrastructure --that would be required for a future state.

In six areas where the UN is most engaged, governmental functions are now sufficient for a functioning government of a state, said the report.

The World Bank and International Monetary has also recently praised the PA’s efforts at state-building.

The PA currently has a limited self-rule government in the West Bank,

The report was released by Robert Serry, the UN special coordinator for the Middle East peace process.

However, the report warned that any progress made by PA towards statehood would be daunted by its conflicts with Israel and with Hamas, the Palestinian Islamist group which governs Gaza.

Measures of occupation which stifle Palestinian life need to be fundamentally rolled back by more far reaching Israeli actions to match the progress of the state-building program, the report said.

The PA has established a September 2011 deadline for statehood, hoping it can persuade the international community – including the UN General Assembly -- to formally recognize a Palestinian state that encompasses all territory that has been occupied by Israel since 1967. However, this area includes Gaza, which PA has no control or influence over.

Indeed, the ruler so Gaza, Hamas, will not accept any agreement that recognizes Israel.

Moreover, Israel has repeatedly stated that a Palestinian state can be achieved only by mutual consent, not through any unilateral moves,

Jewish settlements in West Bank and East Jerusalem have disrupted Peace talks between Israel and the Palestinians since late last year.

The report noted that Israel still controlled 62 per cent of the West Bank, including major roads.

The current situation leaves Palestinians significantly constrained in terms of movement of people and goods and access to land, the report said.

Serry stated: I ... stress the urgent need for Israeli-Palestinian peace negotiations on a two-state solution to resume, if the state building and political tracks are to come together by September.”