Israel’s economy would increase by $120 billion and the Palestinian economy by some $50 billion over the next decade in a two-state solution, a study has found.
A peace agreement could also see Palestinian income rise by 36 percent and Israeli by 5 percent, according to the Rand Corp. study released June 8, which also said the Israeli economy could lose some $250 billion in economic opportunities in the event of a return to violence.
The Rand Corp., a U.S.-based nonprofit research organization, said it interviewed 200 officials during more than two years of research.
Other study findings: A unilateral withdrawal by Israel from the West Bank would impose large economic costs on Israelis unless the international community shouldered a substantial portion of the costs of relocating settlers; intangible factors, such as Israeli and Palestinian security and sovereignty aspirations, are critical considerations; and taking advantage of the economic opportunities of a two-state solution would require substantial investments from the public and private sectors of the international community and from Israel and the Palestinians.
“A two-state solution produces by far the best economic outcomes for both Israelis and Palestinians,” Charles Ries, a co-leader of the study and a Rand vice president, said in a statement. — jta