Peace could boost Israeli economy by ‘£80 billion over next decade’

An authoritative report has concluded that an Israeli-Palestinian peace deal would boost the Israeli economy by up to £80 billion over the next decade, while the cost of the boycott campaign would be over £30 billion.

The study by the U.S.-based Rand Corporation said the benefits to a deal far outweigh the costs associated with the losses associated with the boycott and divestment strategy, which appears to be increasing.

“A two-state solution provides by far the best economic outcomes for both Israelis and Palestinians,” it says.

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“Israelis would gain over three times more than the Palestinians in absolute terms, $123 billion versus $50 billion over ten years. But the Palestinians would gain more proportionately, with average per capita income increasing by 36 percent, versus 5 percent for the average Israeli.”

Alongside the report, Rand researchers published a “costs of conflict calculator” that allows users to adjust variables themselves, such as security costs, tourism numbers, or the toll that BDS might take.

By contrast, the authors say that a continued campaign of “non-violent resistance” such as the Boycott, Divestment and Sanctions (BDS) movement would cost the Israeli economy of $47bn over 10 years.

Rand’s findings were reinforced by a secret Israeli government report, leaked on Monday, which reported that the BDS campaign was costing almost £1 billion per year in lost business, and that this would be significantly increased if the EU-wide labelling of settlement-made goods is introduced.

The report represents a rare attempt to calculate the economic toll of the long-running conflict on both sides, both in terms of direct costs, such as budgetary spending, and opportunity costs, such as lost investment.