Critics argue that the Palestinian Authority is dysfunctional and aid-dependent, while Palestinian officials argue that the economy of an independent Palestine would function much better than it does under the current conditions of Israeli occupation. Part of the challenge of assessing the economic prospects of a future Palestine is that it fundamentally depends on what kind of Palestine one imagines and how one imagines getting there.

The Economics of Palestinian Statehood

By , , Feature

Later this month, the Palestine Liberation Organization is expected to call upon the United Nations to recognize Palestinian statehood based on the 1967 borders. The initiative is not based on any hope that the move will itself bring about a concrete change in conditions in the occupied Palestinian territories. Rather, it is intended to more firmly anchor the principle of a Palestinian state, at a time when Palestinian leaders fundamentally doubt Israel's commitment to a two-state solution.

The move is vehemently opposed by Israel, with Prime Minister Benjamin Netanyahu arguing that the effort seeks to circumvent the peace process. U.N. recognition is also opposed by the Obama administration, which has threatened to veto the move in the U.N. Security Council. While Europe is divided on the issue, the Palestinian request is expected to enjoy widespread support within the U.N. General Assembly, where the Palestinians will likely attempt to partially circumvent an American veto in the Security Council. ...

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