Israeli-Palestinian peace could boost economies by more than 150 billion dollars: study

A peace deal between Israel and the Palestinians based on the two-state solution would boost their economies by more than 150 billion U.S. dollars, a new study by a U.S.-based think tank revealed on Monday.

The study, conducted by researchers from the Rand Corporation, an American think tank developing solutions for public policy challenges for a safer world, found that Israel would gain 123 billion U.S. dollars and the Palestinian Authority would garner 50 billion U.S. dollars by ending the conflict.

"A two-state solution provides by far the best economic outcomes for both Israelis and Palestinians," stated the study, which was presented in Jerusalem by Charles Ries, vice president of the Rand Cooperation, adding that returning to violence would have "profoundly negative effects" for both Israelis and Palestinians.

The Palestinians would gain more money proportionately, the study states, with an expected increase of the average per-capita income by 36 percent over what it would have been in 2024, while Israel would enjoy an increase of five percent to the average per-capita income.

While these statistics refer to a peace treaty based on a two-state solution, another scenario in which Israel unilaterally withdraws from the West Bank territories would end up costing Israel.

"Unilateral withdrawal by Israel from the West Bank would impose larger economic costs on Israelis, unless the international community shoulders a substantial portion of the costs of relocating settlers," the study stated.

In any case, the study concludes that in order to realize the economic opportunities of the two-state solution, the international community would have to invest funds, both within the public and private sectors.

After decades of conflict, Israel and the Palestinians signed an initial peace treaty known as the Oslo Accords in 1993, an interim agreement setting the groundwork for a future agreement to end the conflict and enable the establishment of a Palestinian state.

Since then several rounds of peace talks took place, yet without any results. The last round took place between July 2013 and April 2014, negotiated by U.S. Secretary of State John Kerry.

The last round ended abruptly without results. Israel announced it was suspending the negotiations amid the Palestinian Authority's announcement of the establishment of a national unity government with Hamas, a militant group Israel fought against for 51 days during the last Gaza War known as Operation Protective Edge.

Since then, there had not been diplomatic contacts between the parties and the Palestinians have made attempts to join international treaties and gain support for a unilateral withdrawal of Israel from lands Israel occupied in the 1967 Mideast War, slated to be part of a future Palestinian state.

Israel faces growing criticism and threat of boycott and divestment from international bodies over its ongoing construction in the Jewish settlements and the deadlock in the diplomatic course. Endit