While Israel’s political system increasingly moves to the right, with hardline President Benjamin Netanyahu openly advocating for genocide, Israel’s economy would gain more than $120 billion over the next decade should a two state peace agreement be worked out with the Palestinian state, according to U.S.-based think tank Rand Corporation.
The study predicts that the Palestinians would see $50 billion in economic benefits, including a 36% jump in per capita income.
Yet the conclusion is sharply different if a new wave of violence erupts between Israel and the Palestine. Israel alone stands to lose over $250 billion in economic opportunities over the decade, while Palestinians’ would see their per capital GDP fall by 46%. Such a drop would further impinge their survival as a people, given their current per capita GDP is barely $2,600 per year.
The study, entitled “The Costs of the Israeli-Palestinian Conflict” concluded:
A two-state solution produces by far the best economic outcomes for both Israelis and Palestinians,” said Charles Ries, co-leader of the study and a vice president at Rand. “In a decade, the average Israeli would see his or her income rise by about $2,200 vs. a $1,000 gain for Palestinians, compared with our projection for present trends. But that only works out to 5% for each Israeli, vs. 36% for the average Palestinian, meaning Israelis have far less and Palestinians far more economic incentive to move toward peace.
It remains to be seen whether such a solution would be possible, given hardliner Netanyahu’s open disdain for Palestine and his ultra-conservative backers. Over the weekend Israel killed more Palestinian civilians in response to an ISIS launched rocket attack. Despite knowing it was not Palestinians who committed the attack, Israel bombed them anyway, showing just how far away the country’s mind is from peace.