The Palestinian economy is sinking into dependence on foreign aid, its public sector swelling as its manufacturing and other businesses wither, according to a World Bank report released Tuesday. The 35-page report details how the Palestinian economies in the West Bank and Gaza have steadily deteriorated since 2000, when the peace process with Israel broke down and violence erupted. The latest crisis is in Gaza, where the takeover by Hamas in June led to closing border crossings, threatens most businesses, which rely on imported raw materials and exported products.