A new study by the Rand Corporation released this week illustrates the economic benefits of the Two-State Solution. The study estimates an economic benefit of $150 billion dollars for Israelis and $50 billion for Palestinians over a ten-year period, with both peoples benefitting. It predicts a 36% increase in per capita income for Palestinians over the same time frame.
The study also analyzes additional scenarios, none of which provide the economic benefit of the Two-State Solution. The Two-State Solution is based on a foundation of self-determination for Palestinians and security for Israelis. A second scenario analyzed in the Rand report is one promoted by the international Boycott, Divestment, and Sanctions (BDS) Movement, which calls for economic pressure on Israel to withdraw from the West Bank without a commitment of peace from Palestinians. Under this scenario, both Israelis and Palestinians suffer economic losses, as economic cooperation between Israelis and Palestinians disintegrates. By pursuing the economic pressure strategy, the losses for the Palestinians are even greater when viewed as a percentage of Gross Domestic Product.