Valley of Peace initiative
Encyclopedia
The Valley of Peace initiative is an effort to promote economic cooperation between Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...

, Jordan
Jordan
Jordan , officially the Hashemite Kingdom of Jordan , Al-Mamlaka al-Urduniyya al-Hashemiyya) is a kingdom on the East Bank of the River Jordan. The country borders Saudi Arabia to the east and south-east, Iraq to the north-east, Syria to the north and the West Bank and Israel to the west, sharing...

 and the Palestinians. It has received the personal attention and support of Shimon Peres
Shimon Peres
GCMG is the ninth President of the State of Israel. Peres served twice as the eighth Prime Minister of Israel and once as Interim Prime Minister, and has been a member of 12 cabinets in a political career spanning over 66 years...

, President of Israel
President of Israel
The President of the State of Israel is the head of state of Israel. The position is largely an apolitical ceremonial figurehead role, with the real executive power lying in the hands of the Prime Minister. The current president is Shimon Peres who took office on 15 July 2007...

. The initiative involves ongoing joint efforts by Israeli and Palestinian leaders to launch new industrial and economic projects, which will create new local businesses and job growth, and promote ongoing cooperation.

It also fits with other new trends and efforts within Israeli and Palestinian society to promote reconciliation based on joint economic effort and dialogue between both groups.

One major component of this plan is the construction and operation of Qualifying Industrial Zone
Qualifying Industrial Zone
Qualifying Industrial Zones are industrial parks that house manufacturing operations in Jordan and Egypt. They are a special free trade zones established in collaboration with Israel to take advantage of the free trade agreements between the United States and Israel...

s. These are industrial facilities within Jordan and Egypt which can serve as centers of collaborative effort.

Project contents

The phrase "Valley of Peace" specifically refers to the Arava/Arabah Valley
Arabah
The Arabah , also known as Aravah, is a section of the Great Rift Valley running in a north-south orientation between the southern end of the Sea of Galilee down to the Dead Sea and continuing further south where it ends at the Gulf of Aqaba. It includes most of the border between Israel to the...

, along which runs the southern portion of the Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...

 - Jordan
Jordan
Jordan , officially the Hashemite Kingdom of Jordan , Al-Mamlaka al-Urduniyya al-Hashemiyya) is a kingdom on the East Bank of the River Jordan. The country borders Saudi Arabia to the east and south-east, Iraq to the north-east, Syria to the north and the West Bank and Israel to the west, sharing...

 border. One major part of the plan includes the private sector development of a $3 billion, 166 km-long (103-mile) canal system along the Arava, known as the Two Seas Canal
Two Seas Canal
The Red Sea-Dead Sea Canal is a proposed canal which would run from the Red Sea to the Dead Sea and provide electricity and potable water to Jordan, Israel and the Palestinian Authority. This proposal has a major role in plans for economic cooperation between Israelis, Jordanians and Palestinians,...

. This engineering scheme would bring Red Sea
Red Sea
The Red Sea is a seawater inlet of the Indian Ocean, lying between Africa and Asia. The connection to the ocean is in the south through the Bab el Mandeb strait and the Gulf of Aden. In the north, there is the Sinai Peninsula, the Gulf of Aqaba, and the Gulf of Suez...

 water to the Dead Sea
Dead Sea
The Dead Sea , also called the Salt Sea, is a salt lake bordering Jordan to the east and Israel and the West Bank to the west. Its surface and shores are below sea level, the lowest elevation on the Earth's surface. The Dead Sea is deep, the deepest hypersaline lake in the world...

 and could provide additional projects and benefits to the region and increase cooperation between Israelis, Jordanians, and Palestinians, through greater development and economic integration. Some environmentalists have criticized the plan, saying that rehabilitation of the Jordan River would be a better way to save the Dead Sea, and would bring less disruption.

This Valley of Peace is part of a 20-kilometer [23-mile] corridor being proposed by Israeli President Shimon Peres for regional economic development. About 420 km of the corridor runs along the Jordanian border, with no border fences, and another 100 km touches on the Palestinian territories. Other projects involve the German
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

ese, and Turkish
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...

 governments and are slated to create up to a million new jobs in Israel and the West Bank.
Some possible future developments along the canal may include convention centers, hotels for up to 200,000 people, restaurants, parks, and artificial lakes and lagoons, and greenhouses for winter fruits and vegetables. A high-speed train line and highway would run along the canal allowing travel between the Dead and Red Seas within an hour. The area may also become a free-trade zone, thus attracting investment from around the world.

The canal might also include a major desalinization plant. In May 2008, it was announced that this project was getting close to being implemented.

PIEFZA is a Palestinian economic organization designed to promote participation in the industrial parks which will be created by this effort. The project will also include a number of other separate efforts and projects, including:
  • An industrial area in Jenin
    Jenin
    Jenin is the largest town in the Northern West Bank, and the third largest city overall. It serves as the administrative center of the Jenin Governorate and is a major agricultural center for the surrounding towns. In 2007, the city had a population of 120,004 not including the adjacent refugee...

     to create jobs, with support from Germany
    Germany
    Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

    , which pledged about $30 million to help with this. This would be used for businesses in the fields of textile
    Textile
    A textile or cloth is a flexible woven material consisting of a network of natural or artificial fibres often referred to as thread or yarn. Yarn is produced by spinning raw fibres of wool, flax, cotton, or other material to produce long strands...

    , wood, and food products. A similar effort has already succeeded in the Jordanian industrial zone.

  • An agro-industrial park to be built near Jericho
    Jericho
    Jericho ; is a city located near the Jordan River in the West Bank of the Palestinian territories. It is the capital of the Jericho Governorate and has a population of more than 20,000. Situated well below sea level on an east-west route north of the Dead Sea, Jericho is the lowest permanently...

    , with support from Japan
    Japan
    Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

    .

  • The "Erez Industrial Estate" project - a free industrial zone near Erez crossing
    Erez Crossing
    The Erez Crossing is a pedestrian/cargo terminal on the Israeli Gaza Strip barrier. It is located in the northern end of the Gaza Strip, on the border with Israel.It is part of a complex formerly including the Erez Industrial Park....

    ,, with support from Turkey
    Turkey
    Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...

    . It will be supported through a joint effort by Turkish, Israeli and Palestinian private sectors, known as the Ankara Forum which will also pursue other common economic goals and industrial projects. The project received the support of the Israeli, Turkish and Palestinian presidents during a trilateral summit in Ankara
    Ankara
    Ankara is the capital of Turkey and the country's second largest city after Istanbul. The city has a mean elevation of , and as of 2010 the metropolitan area in the entire Ankara Province had a population of 4.4 million....

     the previous November, according to an aide to Peres.

  • A hi-tech industrial park in Nazareth
    Nazareth
    Nazareth is the largest city in the North District of Israel. Known as "the Arab capital of Israel," the population is made up predominantly of Palestinian Arab citizens of Israel...

     by entrepreneur Stef Wertheimer
    Stef Wertheimer
    Stef Wertheimer is a German-born Israeli entrepreneur and industrialist, a former Member of the Knesset, and is well known for founding industrial parks in Israel and neighboring countries.-Early life:Wertheimer was born in Kippenheim, Germany...

    , which will start construction in May 2010. Wertheimer has stated, "Coexistence in the industrial park in Arab Nazareth is a good example of coexistence. When people work together, they have no time for nonsense. They're too tired at night to commit terrorist acts. They're satisfied, they engage in producing. They work together, not against each other." Wertheimer has founded four industrial parks in Israel. "The idea of industrial parks in the Middle East and on the borders between Israel and its neighbors is that the parks will bring industry and provide jobs, which will keep people busy working, instead of engaging in terrorism," explains Wertheimer. One park is the Tefen Industrial Park which includes everything from transportation to cultural and educational facilities.

  • A car factory to be operated jointly by Israel and Jordan. It would manufacture cars made by Toyota and Renault.

  • an airport in Eilat shared by Jordan and Israel, which will facilitate future cooperation in tourism between the two countries. It would include a Jordanian terminal, for tourists to Jordan, and an Israeli terminal, leading tourism to Eilat.

  • A railway connection between Jordan and Israel, which would facilitate shipments of goods between the two countries.

  • Agro-industrial development in Jericho
    Jericho
    Jericho ; is a city located near the Jordan River in the West Bank of the Palestinian territories. It is the capital of the Jericho Governorate and has a population of more than 20,000. Situated well below sea level on an east-west route north of the Dead Sea, Jericho is the lowest permanently...

    , enabling the region to be a major agricultural source for the Middle East. Japan has offered to aid in the development of this.

  • A joint Israeli-Palestinian university and medical center. This effort would be led by Ali Dogramaci, a Turkish professor, and will be located on the Israeli side of the Green Line, between Afula
    Afula
    Afula is a city in the North District of Israel, often known as the "Capital of the Valley", referring to the Jezreel Valley. The city had a population of 40,500 at the end of 2009.-History:...

     and Jenin
    Jenin
    Jenin is the largest town in the Northern West Bank, and the third largest city overall. It serves as the administrative center of the Jenin Governorate and is a major agricultural center for the surrounding towns. In 2007, the city had a population of 120,004 not including the adjacent refugee...

    . As of June 2009, the status of this project is in doubt due to some objections raised by some officials within the Israeli Government. However, the Turkish Government has given this effort some encouragement.

Project planning

In July 2006, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

 announced a plan for peace called "Corridor for Peace and Prosperity," which would be based on common economic development and effort, rather than on continuous contention over land. Shimon Peres gave this idea much attention during his participation in an international conference in New York in September 2006 which was organized by former U.S. President Bill Clinton
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...

.

During this period, Turkey formed the Ankara Forum, a meeting process designed to promote cooperation between Israelis and Palestinians. At this group's fourth conference in January 2007, Turkey asserted it would pursue a project to revitalize the Erez
Erez Crossing
The Erez Crossing is a pedestrian/cargo terminal on the Israeli Gaza Strip barrier. It is located in the northern end of the Gaza Strip, on the border with Israel.It is part of a complex formerly including the Erez Industrial Park....

 Industrial Park in the Gaza Strip
Gaza Strip
thumb|Gaza city skylineThe Gaza Strip lies on the Eastern coast of the Mediterranean Sea. The Strip borders Egypt on the southwest and Israel on the south, east and north. It is about long, and between 6 and 12 kilometres wide, with a total area of...

.

In March 2007, at a two-day conference in Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...

 which included officials from Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

, Israel and the Palestinian Authority
Palestinian National Authority
The Palestinian Authority is the administrative organization established to govern parts of the West Bank and Gaza Strip...

, Japan discussed its plan for peace based on common economic development and effort. Both sides stated their support.

In March 2007, the Israeli Cabinet officially decided to adopt the Peace Valley plan, which would entail promotion of and cooperation on economic development for Palestinians. However, some news reports indicated there was little chance of movement due to lack of attention by Prime Minister Ehud Olmert and the Government of Israel.

In his inaugural speech in July 2007, Peres mentioned this effort, and asserted that there was great potential for cooperation among Israel, Palestinians, and Jordan
Jordan
Jordan , officially the Hashemite Kingdom of Jordan , Al-Mamlaka al-Urduniyya al-Hashemiyya) is a kingdom on the East Bank of the River Jordan. The country borders Saudi Arabia to the east and south-east, Iraq to the north-east, Syria to the north and the West Bank and Israel to the west, sharing...

. He also noted this might mean positive support from Persian Gulf states. In August 2007, Peres met with several Israeli businessmen to discuss ways to press the plan forward. Peres stated that the plan might have many positive effects which might help promote peace.

In August 2007, Foreign Ministers of Israel, Jordan, the Palestinian Authority, and Japan met in Jericho
Jericho
Jericho ; is a city located near the Jordan River in the West Bank of the Palestinian territories. It is the capital of the Jericho Governorate and has a population of more than 20,000. Situated well below sea level on an east-west route north of the Dead Sea, Jericho is the lowest permanently...

, and formally agreed to go ahead with this plan. A ceremony took place that month in Jericho formally launching the project. it was attended by Israeli Foreign Minister Tzipi Livni
Tzipi Livni
Tzipporah Malkah "Tzipi" Livni is an Israeli lawyer and politician. She is the current Israeli Opposition Leader and leader of Kadima, the largest party in the Knesset. Raised an ardent nationalist, Livni has become one of her nation's leading voices for the two-state solution. In Israel she has...

, Palestinian negotiator Saeb Erekat
Saeb Erekat
Saeb Muhammad Salih Erekat Saeb Muhammad Salih Erekat Saeb Muhammad Salih Erekat (also Erakat; Ṣāʼib ʻUrayqāt or ʻRēqāt, born April 28, 1955 in Jordanian controlled East Jerusalem was the Palestinian chief of the PLO Steering and Monitoring Committee until 12 February 2011...

, Japanese Foreign Minister Taro Aso
Taro Aso
was the 92nd Prime Minister of Japan serving from September 2008 to September 2009, and was defeated in the August 2009 election.He has served in the House of Representatives since 1979. He was Minister for Foreign Affairs from 2005 to 2007, and was Secretary-General of the LDP briefly in 2007 and...

 and Jordanian Foreign Minister Abdul-Ilah Khatib.

In January 2008, Peres announced that the plan had moved closer to realization, as new details were announced for implementation of joint economic effort in four locations in the West Bank
West Bank
The West Bank ) of the Jordan River is the landlocked geographical eastern part of the Palestinian territories located in Western Asia. To the west, north, and south, the West Bank shares borders with the state of Israel. To the east, across the Jordan River, lies the Hashemite Kingdom of Jordan...

. This included specific plans for industrial projects, and a jointly-built university, and investments from several countries, including Japan, Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...

 and Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

. Peres discussed this with Tony Blair
Tony Blair
Anthony Charles Lynton Blair is a former British Labour Party politician who served as the Prime Minister of the United Kingdom from 2 May 1997 to 27 June 2007. He was the Member of Parliament for Sedgefield from 1983 to 2007 and Leader of the Labour Party from 1994 to 2007...

 during Blair's visit to the Mideast in February 2008. Peres said that efforts were moving ahead.

USAID and the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...

 have reviewed many of the specific proposals in depth, and issued a critique of many strengths and weaknesses of the plan. In May 2008 Tony Blair announced a new plan for peace and for Palestinian rights, based heavily on the ideas on the Peace Valley plan.

In May 2008, Peres hosted a conference in celebration of Israel's 60th anniversary, called "Facing Tomorrow." He addressed numerous issues related to Israel's future. He discussed the Peace Valley initiative with numerous foreign leaders. President George Bush expressed support for the idea. Peres said that the inititative could bring lasting peace and transformation to the region. Regarding Palestinians, he said,

Local planning efforts, 2008-present

In March 2008, Israeli and Palestinian civil defense officials gathered for their first full official meeting in a decade, to discuss further coordination of efforts to further pursue this project.

In May 2008, a major economic international conference was held in Bethlehem, at which various businessmen and local leaders discussed various opportunities for economic development. Several leaders addressed the conference, including the director of the World Bank. The conference was sponsored by various international private companies and some public organizations. Conference sessions covered many details of Palestinian Development. One agricultural entrepreneur noted that Israel is his biggest market, while others speakers noted the need for coordination with Israel to allow further development.

One major part of the plan consists of a canal between the Dead Sea
Dead Sea
The Dead Sea , also called the Salt Sea, is a salt lake bordering Jordan to the east and Israel and the West Bank to the west. Its surface and shores are below sea level, the lowest elevation on the Earth's surface. The Dead Sea is deep, the deepest hypersaline lake in the world...

 and the Red Sea
Red Sea
The Red Sea is a seawater inlet of the Indian Ocean, lying between Africa and Asia. The connection to the ocean is in the south through the Bab el Mandeb strait and the Gulf of Aden. In the north, there is the Sinai Peninsula, the Gulf of Aqaba, and the Gulf of Suez...

. In May 2008, Isaac Tshuva, an Israeli businessman, announced plans to launch this project. This would involves labor by both Israelis and Palestinians. It would also include a major desalinization plant.

In July 2008, the Japanese government reiterated its support for the plan in meetings with Israelis and Palestinians, and urged the sides to continue working towards completion. Japan also indicated specific support for an agro-industrial park to be built near Jericho, and said it hopes to begin construction by 2009.

Efforts at joint development and dialogue have also moved forward on the local level in the Jenin area, through ongoing contact between the Israeli Gilboa Regional Council
Gilboa Regional Council
Gilboa Regional Council is a regional council in northern Israel, located on the slopes of the Gilboa mountain range. There are more than 22,000 residents in 38 settlements as of 2007...

 and local Palestinian officials of the Jenin district. Groundbreaking on the Jenin project is hoped to occur by January 2009.

The regional area of Gilboa and Jenin has a long history of cross-border cooperation. In December 2008, community leaders from both sides of the border met to pursue cooperation on a variety of topics.

Mejdi
Mejdi
Middle East Justice and Development Initiatives is a local grassroots Palestinian organization which was founded by Aziz Abu Sarah, a young Palestinian activist who seeks to advocate cooperation and reconciliation efforts. Mejdi seeks to promote dialogue between Israelis and Palestinians...

 is a local grassroots Palestinian organization which was founded by Aziz Abu Sarah, a young Palestinian activist who seeks to advocate cooperation and reconciliation efforts. Mejdi's seeks to promote dialogue between ISraelis and Palestinians. one part of its peacemaking efforts is to promote local economic development, and strengthening of Palestinian small businesses. Abu Sarah has been consistently involved in a range of workshops and efforts in which he has promoted greater efforts towards reconciliation and dialogue between individual Israelis and PAlestinians.

In October 2008, the Palestinian Authority signed an agreement with the government of Germany, in which Germany donated 13 million euros to start work on the Jenin Industrial Estate. Construction is expected to start by 2009. In late 2008 efforts and discussions continued between local leaders on both sides of the border.

In June 2009, after a meeting with World Bank President Robert Zoellick, the Israeli Regional Cooperation Minister, Silvan Shalom
Silvan Shalom
' , born 4 October 1958) is an Israeli politician, member of the Knesset for Likud and the country's Vice Prime Minister and Minister for Regional Development. He previously served as the country's Foreign Minister and Finance Minister.-Biography:...

, announced a pilot project to build a "pilot" pipe 180 km long from the Red Sea to the Dead Sea. The pipe would pump 200 million cubic meters per year. Half of this would be desalinated for Jordanian consumption and half put into the Dead Sea.. Some experts questioned this project. Hebrew University of Jerusalem Prof. Avner Adin said more studies were needed on the potential environmental impact.
However, various groups and government officials from several countries say that the pipeline is needed to save the Dead Sea, which may be in danger of drying up due to some environmental factors.

In early 2010, Shimon Peres took an active and personal role in efforts to promote local business initiatives. Peres personally led a tour of top Israeli executives through the West Bank, and told them about many new Palestinian businesses which show much growth potential. One company highlighted by Peres was the New Generation Technology incubator, a joint Jewish-Arab effort founded in 2002 which encourages new ideas and projects in technology and biotechnology.

The Israeli-Palestinian Chamber of Commerce was founded in 2009. Its chairman is Eival Gilady
Eival Gilady
Brigadier General Eival Gilady is the CEO of the Portland Trust in Israel, a non-profit British foundation, established to foster peace and stability in the Middle East through the use of bespoke economic tools and mobilization of international resources.Gilady is the Chairman of the Western...

, and its CEO is Ofir Gendelman
Ofir Gendelman
Ofir Gendelman is an Israeli diplomat and current spokesperson to the Arab media in the Israel Prime Minister's Office, a position he has held since April 2010, prior to which he served in the same role at the Israel Ministry of Foreign Affairs...

. It has already held its first conference, at which Tony Blair was the keynote speaker. It is dedicated to promoting development of joint economic initiatives and businesses.

In early 2010, the Palestine Investment Fund (PIF) launched the first-ever Palestinian private equity fund, in order to raise $50 million to invest in Palestinian businesses. The PIF has a portfolio of about $800 million, and invests in projects such as housing and infrastructure. The PIF operates with its own board but reports to President Mahmoud Abbas. The new private equity fund will try to raise cash from investors to use to help small and medium-sized businesses. These enterprises employ about 85% of Palestinians and contribute to more than half the GDP in the West Bank and Gaza Strip, but lack access to banks and capital markets.

As of 2011, there are about 50 factories in the West Bank industrial region where Jews and Palestinians work together.

Public statements

Benjamin Netanyahu
Benjamin Netanyahu
Benjamin "Bibi" Netanyahu is the current Prime Minister of Israel. He serves also as the Chairman of the Likud Party, as a Knesset member, as the Health Minister of Israel, as the Pensioner Affairs Minister of Israel and as the Economic Strategy Minister of Israel.Netanyahu is the first and, to...

, a former Finance Minister of Israel and the current Prime Minister of Israel
Prime Minister of Israel
The Prime Minister of Israel is the head of the Israeli government and the most powerful political figure in Israel . The prime minister is the country's chief executive. The official residence of the prime minister, Beit Rosh Hamemshala is in Jerusalem...

 has repeatedly made public statements during the 2009 Israeli elections which advocated an approach to peace based on economic cooperation and joint effort, rather than continuous contention over political and diplomatic issues. He raised these ideas during discussions with U.S. Secretary of State Condoleezza Rice
Condoleezza Rice
Condoleezza Rice is an American political scientist and diplomat. She served as the 66th United States Secretary of State, and was the second person to hold that office in the administration of President George W. Bush...

. Netanyahu continued to advocate these ideas as the Israeli elections got nearer and plans to execute them after he assumed office.

Netanyahu has said:

Right now, the peace talks are based only one thing, only on peace talks. It makes no sense at this point to talk about the most contractible issue. It's Jerusalem or bust, or right of return or bust. That has led to failure and is likely to lead to failure again....We must weave an economic peace alongside a political process. That means that we have to strengthen the moderate parts of the Palestinian economy by handing rapid growth in those area, rapid economic growth that gives a stake for peace for the ordinary Palestinians."


Similarly, in a Jerusalem Post interview, Tony Blair, the special envoy for the Quartet, said in May 2009:

Question: ...we're hearing about a determination to build from the bottom up with the Palestinians, including assurances that economic projects that had been stymied will now be advanced...

Blair: ...you have to build from the bottom up as well as negotiate from the top down...because once you take the three "headings" - politics, economics and security... Each of these things take decisions...it will become apparent, whether Israelis are prepared to build from the bottom up, and whether Palestinians understand that Israel will only tolerate a Palestinian state that is a stable and secure neighbor...


...people ask me, why are you bothered about whether there's a bit of agri-industrial thing around Jericho. And I say, because it matters. The detail on the ground really matters. Just supposing you've [created the conditions] in the Jericho area to exploit the [tourism] potential it has got. You're creating a whole set of stake-holders who, when it comes to those difficult concessions, are going to say, "We want the state." They are then believing in a reality, not a shibboleth...


Implementation and effects

The Bethlehem
Bethlehem Governorate
The Bethlehem Governorate is one of 16 Governorates of the West Bank and Gaza Strip within the Palestinian Territories. It covers an area of the West Bank, south of Jerusalem. Its principal city and district capital is Bethlehem...

 Small Enterprise Center opened in early 2008 with funding from Germany, and has helped Palestinian small businesses in various areas, such as helping printers to improve software and olive wood craftsmen to market their products.

In 2008, the economy in the West Bank improved gradually. Economic growth for the occupied areas reached about 4-5% and unemployment dropped about 3%. Israeli figures indicated that wages in the West Bank rose more than 20% in 2008 and trade rose about 35%. Tourism in Bethlehem increased to about twice its previous levels, and tourism increased by 50% in Jericho. In 2009, an economic boom began with growth reaching 7 percent, higher than in Israel or the West. Tourism to Bethlehem, which had doubled to 1 million in 2008, rose to nearly 1.5 million in 2009. New car imports increased by 44 percent. New shopping malls opened in Jenin and Nablus. Palestinian developers are planning to build the first modern Palestinian city, Rawabi
Rawabi
Rawabi is the first Palestinian planned city in the West Bank. Rawabi is to be located near Ramallah and Bir Zeit. A master plan has been drawn up for the city, which will consist of 10,000 homes in six neighborhoods with a population of 40,000. Homebuyers will have access to an affordable...

.

Olives of Peace is a joint Israeli-Palestinian business venture to sell olive oil. Through this project, Israelis and Palestinians have carried out joint training sessions and planning. It has also led to Palestinian oil production being enriched by Israeli ingredients. It has produced olive oil which has been sold under the brand name "Olives of Peace."

In 2009, efforts continued to build Palestinian local institutions and governments from the ground up. Much of this work was done by Tony Blair and U.S. General Keith Dayton
Keith Dayton
Lieutenant General Keith W. Dayton, United States Army, is the director of the George C. Marshall European Center for Security Studies in Garmisch-Partenkirchen, Germany. He completed his term as the U.S. Security Coordinator for Israel-Palestinian Authority in Tel Aviv, Israel in October 2010...

. Some analysts saw this as a more substantial way to lay a groundwork for viable institutions and for local peace.

Joint economic cooperation between Israeli officials in Gilboa and Palestinian officials in Jenin has begun to have major results and benefits. In October 2009, a new project got underway promoting tourism and travel between the two areas. Major new business efforts and tourist attractions have been initiated in Jenin. The two regions are planning a joint industrial zone which would bridge the border. Palestinians would produce locally-made handicrafts and sell them through Gilboa to other regions of the world. Another possible project is a joint language center, where Israelis and Palestinians would teach each other Arabic and Hebrew, as well as aspects of their cultural heritage.

Other joint economic efforts

A new computer company composed of both Israelis and Palestinians has received major press coverage in Western media, as a vital new example of joint effort between Israelis and Palestinians. The company G.ho.st
G.ho.st
G.ho.st was the trading name of Ghost Inc. and the service name and URL of the company's hosted computer operating system or WebOS service. Its name is an acronym of Global Hosted Operating SysTem. The old URL G.ho.st is a domain hack using the São Tomé and Príncipe .st country extension and more...

 has offices in both Modiin and Ramallah
Ramallah
Ramallah is a Palestinian city in the central West Bank located 10 kilometers north of Jerusalem, adjacent to al-Bireh. It currently serves as the de facto administrative capital of the Palestinian National Authority...

. Palestinians have benefited from large amounts of venture capital available through Israeli contacts. Israeli involvement began by benefiting from the labor costs and salary levels in Palestinian society, where various Israeli business have already outsourced
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...

 some business. Over time, the project became a partnership, owing to a large number of new Palestinian college graduates who studied information science and needed new business opportunities.

Investors as individuals and companies, such as Michael Eisenberg of Benchmark Capital
Benchmark Capital
Benchmark Capital is a venture capital firm responsible for the early stage funding of some very successful startups. In 1997, the firm invested $6.7 million in eBay, which became worth more than $5 billion by the spring of 1999. Other high-profile investments include Ariba, Juniper Networks, Red...

 have sought to invest funds based on G.ho.st's long-term goals to create a totally web-based computer environment, free of any need for traditional software applications. Another significant connection has been through Noa Rothman, granddaughter of Yitzchak Rabin, whose organization promotes joint dialogue.

See also

  • Israeli-Palestinian conflict
    Israeli-Palestinian conflict
    The Israeli–Palestinian conflict is the ongoing conflict between Israelis and Palestinians. The conflict is wide-ranging, and the term is also used in reference to the earlier phases of the same conflict, between Jewish and Zionist yishuv and the Arab population living in Palestine under Ottoman or...

  • Projects working for peace among Arabs and Israelis
  • Middle East economic integration
    Middle East economic integration
    Middle East economic integration has been envisioned, proposed or implemented by various parties in recent history.The stated rationale is that peace, stability and prosperity in the Middle East can only be sustained over the long-run through intra-regional economic cooperation.Governance,...



Specific groups
  • Trade Unions Linking Israel and Palestine
    Trade Unions Linking Israel and Palestine
    Trade Unions Linking Israel and Palestine is an organization of unions located in various countries around the world. Its stated main goal is to promote cooperation between Israelis and Palestinians. In addition it also aims to counter some efforts in other countries to promote boycotts of Israel...

  • Arava Institute for Environmental Studies
    Arava Institute for Environmental Studies
    The Arava Institute for Environmental Studies is an accredited academic program for undergraduate and graduate studies located at Kibbutz Ketura on the Israeli side of the Arava Valley. It seeks to train future leaders of the Middle East in environmental issues so that they will be able to...

  • Alliance for Middle East Peace
    Alliance for Middle East Peace
    Alliance for Middle East Peace is a group of over 70 leading non-governmental organizations working to foster reconciliation between Israelis and Palestinians, and between Arabs and Jews in the Middle East. Its members include a wide variety of groups, including grassroots coexistence groups,...


Official websites


Media coverage and private sites


News coverage of individual sites and effort

  • Joint Israeli-Palestinian industrial park to be built in north, By Haaretz Service, 8/9/08. "A new joint Israeli-Palestinian industrial park will be built next year in the northern Gilboa region. It will cost $200 million and occupy some 350 acres of land, was approved on Monday by a joint Israeli-American committee, and will be built under the auspices of the US ambassador to Israel James Cunningham, the U.S. special envoy to the Mideast General James L. Jones and the U.S. Security Coordinator for Israel and the Palestinian Authority Keith Dayton."

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