Let's assume the crazy happens and we have two states and two leaders that are willing to put forth a serious plan. Using the democracy-and-prosperity-cuts-down-on-warfare model, let's wave our Magic Peace Wands and theorize what some good economics would be here. Ideas? Mine are: A better-developed trade system...that goes without saying. Free ag. trade. Israeli technology in the WB and Gaza to help with farming and infrastructure. This will also help Israeli companies if they get contracts. A joint Israeli-Palestinian Tourism Commission. Tens of millions are spent in the Muslim, Jewish and Christian holy site areas. I think the whole land would be a mecca for tourism (hello, Jerusalem AND the beach?! or have you seen how gorgeous Gaza is?) if they could get their shit together. Israel would still control shit within Israel proper (and the Muslims will have to loosen control over the Dome) and Palestinians will still control shit in their territories. Give the Christians more autonomy over Bethlehem and Nazarene churches. They are really suffering from lack of funds/tourism since the first intifada. But seriously, I think that cooperation is the best. And hey, McDonald's should expand. I know that McNomics doesn't always work (eg the theory that countries with McDonald's don't go to war with each other) but those sugar dusted fries are really yummy after a hard day's work. Of course this doesn't solve decades of animosity, lack of education, falling literacy rates in the WB, etc., but let's just pretend it will help.