What economic changes could occur if Israel and the Palestinians were to reach a lasting peace? What kinds of general connections might be found between political conflict and economic conditions throughout the region?
What will be an ideal response?
For the Palestinians, a peace with justice would assure that they would once again have access to jobs, schools, and other opportunities that create economic improvements. For the Israelis, a smaller portion of their government expenditures would need to go to security (e.g., weapons, walled barriers). In general, in this region and elsewhere, political conflict usually has a negative influence on economic conditions. Political conflict discourses investment and hinders tourism. It creates military expenditures that divert monies from productive activities such as education, health care, and infrastructure. Political conflict, but especially armed conflict, causes injury and death and damages infrastructure, which is yet an additional non-monetized economic cost.
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