Peace Process and Palestinian Economy

Two of the most important conditions for the development of the Palestinian state and economy, which further negotiations will have to ensure, are free movement of goods through Israel and assurance of access to Israel for Palestinian labour. All this hinges on the resumption of the peace process and a return of the relative optimism that prevailed during 1993-96. The situation arising out of the Israeli elections will therefore be watched with much interest in the ensuing months.