Between the Arms Race and Political Lobbyists: How Pax Americana Threatens Middle East Peace

Abstract

Peace between Israel and its Arab neighbors is a necessary but not a sufficient criterion for the economic development of the Middle East. Unfortunately, as the Peace Process stands, predictions of an economic boom in the Middle East resulting from the end of the decades-old conflict, much less the kind of economic growth that meets the basic needs of the people, is unlikely. First, as the Likud government becomes more confrontational, progress will continue to wane. Second, as long as basic economic needs are not met, true peace will be difficult to achieve, regardless of the government in power. As in many underdeveloped regions, the adoption of neoliberal economic policies in the Middle East is becoming an increasingly prevalent phenomenon. This is likely to increase investment and economic growth. However, because of the biased nature of funds flows such policies may actually set back those development efforts which would benefit the majority of the region’s population and provide the basis for long-term economic and political stability.