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One of the most persistent and constant themes in both the Israeli and the international approach to the Palestinian issue has been the notion that the road to peace has a strong economic dimension. According to this thinking, if the Palestinian economy and institutions of governance are developing and Palestinians are feeling more prosperous and hopeful regarding their material future, the chances for a successful peace process increase, the prospects for a Palestinian state improve, foundations are laid for Palestinian-Israeli trust and, at a minimum, the danger of violence subsides.
Norway has been a prominent and consistent advocate of this approach, both by generous economic support (close to 11 billion Norwegian kroner since 1993) and taking a leadership role internationally in offering external support for Palestinian state development aschair of the Ad Hoc Liaison Committee (AHLC), Local Development Forum (LDF) and the Joint Liaison Committee (JLC). Oslo is in good company. The pre-1948 British Mandate, the Zionist movement and the post-1967 Israeli occupation all adopted a similar policy.
Along with many aspects of the Israeli-Palestinian peace process, this “economic peace” approach has failed. The time has come to reassess it.
To be sure, economic well-being is a good thing. Many Palestinians, particularly in the Gaza Strip, are extremely needy. The very existence of the Palestinian Authority with its multiple benefits for Palestinians in the West Bank is dependent on generous international grants. All these development and aid projects are vital and should continue. But not if the primary rationale is peace.
This conflict does not derive from economic roots and it is not fed by economic deprivation.
