Throughout most of the 1990s, Daniel Doron observes, increased economic cooperation between Israelis and Palestinians was building a framework for lasting peace. Tragically, as the Israeli-Palestinian conflict has intensified in recent months, economic cooperation has declined. The result has been even greater suffering for the Palestinians, radicalized positions, and an inflammation of the conflict’s causes. Only by establishing law and order and pursuing rapid free-market development, Doron argues, can the Government of Israel offer its citizens the best hope for a peaceful future.

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