A Talk With Prime Minister Fayyad

No. From what I remember, everyone, myself included, pushed for elections to be inclusive. In other words, not to exclude any party.

So how do you explain Fatah's loss ?

The PA [Palestinian Authority] had been around for a long time. . . . There was dissatisfaction with the way the PA had governed. You had a newcomer running against the system. They claim to be clean, they claim Fatah is corrupt.

Is it true that Fatah was corrupt?

The PA clearly didn't manage properly throughout. It does not really have to be a clear case of impropriety for there to be strong public opinion against a sitting authority. The context in which we live, occupation and checkpoints, people don't like that. Another is the failings of the peace process. In the early '90s, expectations were high, but then there was setback after setback.

But when you were sworn in, you spoke out against violence and incitement.. . . What did you say?

Essentially, that the party is over. Places of worship are places of worship. Religion is about tolerance, religion is not about incitement. [Incitement] is not going to be allowed. It was something I did out of deep conviction. It was evident we were not on the right path. We needed to change the mind-set of people in the midst of extreme adversity.

What was the reaction?

They complied. For the Authority to govern, there have to be rules. People have to know what they are.

I heard that you and Israeli Defense Minister Ehud Barak are working on building up Palestinian institutions. Is that correct?

Correct. . . . I want to build toward statehood. I want to create the best Ministry of Finance. I do not want to use the occupation as a pretext or an excuse.

Are you creating a currency and a central bank?