Commentary Magazine


The Prospect of Profits Won’t Buy Middle East Peace

There are some things that are so obvious that perhaps it takes an intellectual to think that stating them constitutes penetrating insight. Perhaps that’s why some are treating the release of a new report on the costs of the Israel-Palestinian conflict and the potential benefits of a stable two-state solution by the Rand Corporation as a profound contribution to the discussion about peace. The report is being extolled by some on the left as yet another sign of the Israeli government’s poor judgment since it has supposedly chosen investment in West Bank settlements and the military over decisions that could lead to a deal that would bring the country greater prosperity. But the problem with this formulation is that the history of the last hundred years, and even of the opening years of the 21st century, shows that while Israelis have always hoped that peace could be built around economic cooperation, Palestinian Arabs have always viewed the standoff with the Jews as a zero-sum conflict into which financial considerations have never been allowed to intrude.

We need to start any discussion about this report or a two-state solution that the economic benefits of such an idea require more than merely the establishment of a Palestinian state along with the withdrawal of some or all of Israel’s settlements in the West Bank or even a re-partition of Jerusalem. The economic benefits of peace are real but they require more than merely a piece of paper. Just as Israel must be willing to cede territory and allow the Palestinians sovereignty over it, the Palestinians are going to have to recognize the legitimacy of a Jewish state no matter where the border between the two countries is drawn. To date, that is something that not even the supposed moderates of Fatah who run the West Bank are willing to do. The Hamas rulers of the independent Palestinian state in all but name in Gaza may be willing to temporarily observe cease-fires with Israel, but actual peace that would lead to cooperation and prosperity is nothing they care to contemplate.

Still, something so sensible as a peace that would increase the average per capita income of each Palestinian by $1,000 (a rise of 36 percent over current levels) and boost the average Israeli income by $2,200 (up by 5 percent) seems worth a try. That’s especially true when Rand tells us that another intifada that would put the Palestinians into a state of armed conflict with Israel would decrease Palestinian incomes by an average $1,130 and Israelis by $4,330.00.

Why then won’t they do it? The answer is simple. The Palestinians have always viewed this discussion as one in which they were being asked to sell their homes and national honor for money. And that is something that a majority of them have never been willing to do.

The Rand Report is brand new but this topic is not.

From the very beginnings of modern Zionism, optimists have always asserted that the building up required for the movement’s success would be an economic bonanza for the country and benefit their Arab neighbors as much as that of the returning Jews. They were right about that. Zionism transformed a backwater region into an economic powerhouse creating jobs and wealth that brought an influx of immigrants from neighboring Arab countries into Ottoman and then British-ruled Palestine. Each new instance of development, from the creation of an electricity grid to the building up of the cities was thought to provide advantages for both sides so great that it would be impossible for Arab leaders to continue to whip up hatred for the Zionists. But on that score, those optimists were dead wrong. Right-wing Zionist leader Ze’ev Jabotinsky warned his fellow Jews that Arabs would not be bought off by economics but instead must be fought until they ceased resisting the new reality. Labor Zionists, who commanded the support of more Jews up until Menachem Begin’s election as Israeli prime minister in 1977, disagreed. They thought Palestinian workers and peasants would unite with them to shake off the influence of Arab elites who were thought to be whipping up nationalist and religious outrage about the influx of so many Jews.

That hoped-for economic revolution never happened. But hopes that finance would prevail over hate never died. Support among Israelis and their foreign friends for the 1993 Oslo Accords was driven in no small measure by a belief that the economic benefits of peace would prevail over ancient hates. It would take years of terrorism that culminated in the second intifada for most Israelis to finally shake off their delusions about the Palestinians embracing peace and prosperity. That intifada was, after all, preceded by an Israeli peace offer that would have given them an independent state in almost all of the West Bank, a share of Jerusalem and Gaza.

That intifada not only cost the lives of more than a thousand Jews and many more Arabs but also nearly destroyed a Palestinian economy that seemed on the rise after Oslo. By choosing a terrorist war of attrition over peace with Israel and statehood, the Palestinian leadership didn’t merely set off a bloodbath, it set back the living standards of their people by decades. But rather than rise up against such a leadership, Palestinians instead began to turn more to Hamas, which offered an even more uncompromising view of the conflict. Since then American-trained economist Salam Fayyad tried to offer the Palestinian Authority more cooperation and a vision of good government, he soon realized that he was virtually a party of one.

Seen from that perspective, it’s no good telling Israelis that they’ll be better off with two states and Middle East peace. They know that but have already tried it and learned their potential peace partners have other ideas. We can hope that eventually the Palestinians will create a political culture that doesn’t regard violence against the Jews as praiseworthy and will embrace ideas like those Rand is offering them. Until then, this report, like so many others will remain moldering on the shelf as the Palestinians continue to pursue their dream of eliminating Israel.

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2 Responses to “The Prospect of Profits Won’t Buy Middle East Peace”

  1. ELLIOTT GREEN says:

    this phenomenon does not just pertain to the palestinian Arabs. It is really a Muslim phenomenon. Which doesn’t mean that Arabs or other Muslims don’t like money. They do. Like most other people. But when jihad is the society’s highest priority, social needs get left behind. Iran today is an example. The ayatollahs want to keep up their jihad against the Jews and the Sunnis etc. It doesn’t matter that the people in Iran are suffering economically. On the other hand, Arabs do not always put jihad above their own physical welfare. Egypt got tired of the Muslim Brotherhood, jihadis after all, maybe jihadis lite nowadays, because they paid little attention to the people’s welfare in Egypt, instead worrying about jihad against their own Egyptian state and helping Hamas’ jihad against Israel and stockpiling weapons, etc. There has to be a reason why Egypt was prosperous in ancient times under the pharaohs and the Ptolemies, etc, whereas today it is a poor country.


    “Money don’t buy love”. This was never truer than with the Palestinians. They are not “just like us, but with a different language”. They viscerally hate all Jews, which has been borne out by their actions long before 1948.

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