A Palestinian child sells goods in the markets of Rafah in the southern Gaza Strip to help his family through the difficult economic conditions that face the Palestinian people. (Hatem Omar, Maan Images)

A little more than a year after Israeli troops pulled out of the Gaza Strip, nearly everything that was expected to improve for the 1.4 million Palestinians here has instead gotten worse.

Instead of new prosperity from burgeoning trade with Israel and the world, Gazans face a tighter Israeli security cordon that has sharply restricted exports. Tons of fruit and vegetables have rotted before reaching markets, small factories have ground to a halt, and in recent months, Israel has barred Gazans from fishing off their coast or entering Israel to work.

Instead of enjoying new civic pride, Gazans fear leaving their homes because of internal fighting that has killed more than 100 people this year and worsening street crime that plagues ordinary people in a climate of lawlessness.

And instead of seeing progress toward a Palestinian state and peace with Israel, Gazans are suffering from an international aid boycott against their new Hamas-led government over its refusal to recognize Israel or renounce violence.

The Palestinian Authority, Gaza's largest employer, hasn't paid salaries for seven months. Gaza is cut off physically, economically, and socially from the 2.3 million Palestinians in the West Bank and East Jerusalem. The World Bank predicts the Palestinian economy will shrink a catastrophic 25 percent this year.

Related stories Bad faith and the destruction of Palestine Israel plunges Gaza into darkness, deprivation and despair Neglect Palestine, be irresponsible Condemned to desolation Peace begins with acknowledging individual grievances

Not even the land once reserved for 9,000 Israeli settlers -- the most tangible gain from Israel's pullout -- has been put to public use. Chunks of concrete and steel still litter the demolished settlements, where Palestinian leaders had promised to build houses and schools. Much of the one-third of Gaza that was controlled by settlers and Israeli troops has been seized by powerful families or militant groups.

"Everything got worse," said Khaled Abdel Shafi, head of the Gaza office of the United Nations Development Program, which holds the $26 million contract to remove the 1.2 million tons of rubble -- a job that was supposed to be done by now but is only just beginning because of squatters and threats against workers.

Israel pulled the settlers out of Gaza last summer and unilaterally ended its military presence inside Gaza on Sept. 12, 2005, after occupying the 28-mile-long, 5-mile-wide strip since the 1967 war.

One benefit most Gazans name is that they can now move freely within Gaza -- most of the time. Before, Israeli troops controlled checkpoints that divided Gaza into three sections, sometimes forcing Palestinians to wait hours to make the half-hour drive between Gaza City and Gaza's second-largest city, Khan Yunis.

But Gaza is still encircled by a fence Israel built during the bloody Palestinian uprising that began in 2001. Israel controls the crossing points between Gaza and Israel, and can force the closure of the single crossing into Egypt.

So economic progress for Gaza after Israel's departure depended on Israel's cooperation. That required a precarious balance: Israel wouldn't open its gates unless it felt safe from attack; Palestinian leaders wouldn't crack down on armed groups unless they could show their people hope for progress.

To read the full article, please visit The Boston Globe's website.