Israel Palestine Peace – Economics – Free PDF Download



  • The Israel-Palestine peace plan or the West Asia peace plan is the proposal unveiled by U.S. President Donald

What is Mr. Trump trying to do?

  • This plan seeks to address most of the contentious issues in the conflict.
  • The solutions, Mr. Trump has proposed to almost all of these issues, favour the Israeli positions.
  • He seeks to give to the Israelis, Jerusalem and part of the West Bank.
  • With his plan, he is actually pushing to revive the stalled two-state talks between the Israelis and the  Palestinians, but on his own terms.

Two-state solution

  • It is a proposed framework for resolving the Israeli- Palestinian conflict by establishing two states for two
  • Israel for the Jewish people and Palestine for the Palestinian people.
  • In 1993 the Israeli government and the Palestine Liberation Organization (PLO) agreed on a plan to  implement a two-state solution as part of the Oslo  Accords, leading to the establishment of the  Palestinian Authority (PA).
  • In 1947, the UN General Assembly accepted the two- nation solution proposed by the British to partition  Palestine into an Arab State and a Jewish state and the  city of Jerusalem.


  • The land that is called Israel had been historically occupied by the people of the Jewish faith.
  • However, with the coming of the Romans, Jews were driven out of Israel in the first century CE.
  • In 131 CE, the area called Roman Judaea (a province comprising Israel and surrounding areas) was  renamed as Syria Palaestina.
  • The Jews were forbidden from entering Jerusalem, their holiest city.
  • In 1917, towards the end of World War I, following the defeat of the Ottoman Empire, Palestine was occupied  by British forces.
  • The United Kingdom was granted control of the area west of the River Jordan now comprising the State of  Israel, the West Bank and the Gaza Strip (Mandatory  Palestine), and on the east bank, Transjordan by the  Versailles Peace Conference which established the  League of Nations in 1919.
  • During World War I the British had made two promises regarding territory in the Middle East.
  • Britain had promised the local Arabs, through Lawrence of Arabia, independence for a united Arab  country covering most of the Arab Middle East, in  exchange for their supporting the British; and Britain  had promised to create and foster a Jewish national  home as laid out in the Balfour Declaration, 1917.
  • Following the Balfour declaration and the increased persecution of Jews all around the world, there was an  increase of Jews migrating to Palestine.
  • As more Jews poured in and began buying land to settle, Arabs have pushed away from their traditional  land holdings.
  • This created conditions of tension between the Arabs already residing in Palestine and the new migrant
  • In 1920, violence erupted between the Arab and Jews during the British rule and continued till 1948.

What is Trump’s plan?

  • The Palestinian refugees, who were forced out from their homes during the 1948 Arab-Israeli war that  followed the declaration of the state of Israel in the  historic Palestine, would not be allowed to return.
  • Jerusalem would be the undivided capital of Israel, with the Palestine gaining its capital in the east of the
  • In return, Israel would freeze further settlement activities on the West Bank for 4 years .
  • During this period, the Palestinian Authority should dismiss its current complaints at the International  Criminal Court against Israel and refrain itself from  taking further actions.
  • It should crack down on certain terrorist groups like the Hamas.
  • During this period, the Palestinian Authority should dismiss its current complaints at the International  Criminal Court against Israel and refrain itself from  taking further actions.
  • It should crack down on certain terrorist groups like the Hamas.

Proposed land swaps

  • The plan proposes some land swap for the Israeli annexation of the Jewish settlements of the West Bank  as well as the Jordan Valley.
  • It seeks to enlarge Gaza and connect the strip with the West Bank through a tunnel.
  • The Arab towns in the southeast of Israel, which are close to Gaza, could become part of a future  Palestinian state.

What the Palestine may get?

  • Trump has also proposed $50 billion in investment over 10 years should Palestine accept the proposals.
  • In the final settlement, Palestine would get control over more land than what it currently controls.

What does Palestine want?

  • They want an independent, sovereign Palestinian state to be formed which will include the whole of the West  Bank and the Gaza Strip, with East Jerusalem as its
  • This Palestine position is backed by most of the world
  • Issues like the right of return of the Palestinian refugees are to be settled in final negotiations.
  • But Mr. Trump has effectively rejected the Palestinian claims outright and asked them to make more
  • He has denied the right of return of the Palestinian refugees, all for truncated sovereignty for the  Palestinians in a state that would be practically  surrounded by Israel.
  • The Palestinians had rejected the proposal as they say the Trump administration cannot be an impartial  mediator for peace.
  • This is because as the Trump administration recognized the disputed Jerusalem as Israel’s capital  and supported the annexation of the settlements on  the West Bank.
  • It is virtually impossible for any Palestinian leader to sell these proposals to a people who have been resisting Israel’s occupation for decades.




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