The Jerusalem Post discusses a new study published by the Peres Center for Peace, which argues that economic peace, though a helpful tool, cannot replace a political solution with the Palestinians.
The Peres Center details different components of ‘economic peace’, such as employment of Palestinians in Israel, developing industrial zones in the West Bank, opening the way to trade, improving infrastructure and investing in tourism. However, it concludes that economic peace is a necessary but insufficient step to peace making.
History shows that ‘the cost of loss’ argument works well in a flourishing economy until nationalism raises its head. For example, in 2000, the second intifada broke out at the height of economic prosperity in the West Bank.
In a similar vein and in light of recent security advances by the Palestinian National Forces in the West Bank, Thomas Friedman warns that lack of political progress could prove to be counterproductive as Abbas and Fayyad are already seen by many to be ‘subcontractors for Israeli security.’ Their inability to provide political progress could thus undermine the Fatah leadership.
The urgency of accompanying economic and security progress with political negotiations was illustrated by Lt. Gen. Keith Dayton who warned that “With big expectations, come big risks…There is perhaps a two-year shelf life on being told that you’re creating a state, when you’re not.”


Intriguing perspective. Bonds created by economic ties are not what will bind religiously and ideologically driven movements such as the Hammas, and to a lesser degree, the Fatah.
It has always been a tenet of theoretical politics that economics is secondary in importance to political developments. It isn’t that economic dislocations don’t spur political upheavals, it is just they are not decisive in comparison with a well-led party that represents the major class interest under attack.
Revolutions often begin when things start to improve economically. The classic example is the French Revolution which did not really take off until extreme poverty and hunger were somewhat alleviated. However, the fact that Dayton’s police force seems to have successfully contained extreme Hamas elements is encouraging so long as Fatah remains non-violent.
There is an opening for good will gestures by the Israeli Govt. The removal of checkpoints is a good beginning. How about inviting Palestinian youth groups to “State camps” where they can learn the basics of local and national democratic politics? To remove any suggestions of propaganda or puppetry, invite Fatah politicians to help supervise.