Valley of Peace Initiative - Implementation and Effects

Implementation and Effects

The 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.

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. 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.