Janice R. Andrews
Economic specialists from both Israeli and Palestinian sides are advocating for a fresh economic agreement to secure lasting peace amid post-war regional instability. They argue that the 1994 Paris Protocol, intended to govern economic relations, has instead created Palestinian dependency on Israel, generating hostility.
Gai Hetzroni, who heads the Israeli-Palestinian Chamber of Commerce, contends that economic stability builds trust and helps counter extremism. However, Dr. Roby Nathanson points out that Israel’s command over trade and taxation has limited Palestinian economic independence.
According to Dr. Naser Abdelkarim, Israel enforces the Paris Protocol inconsistently, constraining Palestinian economic development. Dr. Nemer Badwan additionally cites internal economic mismanagement and overreliance on foreign assistance as obstacles to progress.
Experts suggest reducing Israeli dependency through expanded trade with Jordan and Egypt, alongside implementing a comprehensive reconstruction initiative similar to the Marshall Plan. However, funding challenges and sovereignty concerns present significant hurdles.
While economic collaboration may foster peace, experts caution that Palestinian sovereignty remains essential, as economic prosperity alone cannot resolve the fundamental conflict.
