According to the Portland Trust, the respected non-for-profit British foundation committed to encouraging peace and stability between Palestinians and Israelis through economic development, ‘the overarching economic lesson from Bosnia and Herzegovina is that the structure of the political settlement controls the nature of the post-conflict economy.’ The Trust points out that it is vital the political solution ‘is structured in a way that encourages optimal economic development’ because ‘a strong post-conflict economy is essential for keeping the peace’. Conversely, ‘economic disparities and poor financial prospects endanger a fragile peace accord’. Economic divisions between the Republic Srpska and the Federation of Bosnia Herzegovina, the Trust notes, have stifled economic growth and entrenched ethnic divisions. The lesson for Israel-Palestine is plain: severing economic ties risks perpetuating political conflict.

BDS will only worsen the economic disparities between Israelis and Palestinians that have the potential to endanger a peaceful settlement. The Palestinian economy suffers from a number of structural weaknesses in addition to the considerable economic impediments created by the occupation. These include the weakness of the law and court system, susceptibility to undue political influence, low productivity, low foreign direct investment, weak competitiveness (though this is inextricably linked to the heavy Israeli security apparatus) and dependence on foreign aid.

Read the article in full at Fathom Journal.