This study investigates development policies in Palestine and their effect on the creation of job opportunities. It looks into national development strategies, explains the degree of influence the development policies adopted have had with reference to their employment goals, and tries to assess the factors, internal and external, that affect the performance of development policies. The findings indicate that the development policies and plans drawn up since the establishment of the Palestinian Authority have been little more than sedatives to avert a social explosion. They failed to lead to real comprehensive sustainable development or real economic growth. Development in Palestine is besieged and restricted. The economic growth achieved and referenced in the writings and official reports of the Palestinian Authority is an obstructed, partial and superficial growth, based on the influx of external aid. The study concludes that in order to achieve sustainable development, the Palestinians have to escape the problem of the Oslo Accords and the political, geographic, and economic restrictions it imposed.