The U.S. administration's Israeli-Palestinian “peace plan,” under President Donald Trump, has so far yielded only an inconclusive talkfest about economic development. The underlying rationale of the plan—that economics must come before any addressing of core political issues—is fundamentally flawed for several reasons. The biggest impediments to Palestinian economic development stem from aspects of the Israeli occupation that would continue under the plan, which rejects a two-state solution and is a slightly revised and renamed version of the current arrangement of limited Palestinian autonomy under Israeli domination. The plan flows directly from the Trump administration's policy of acquiescing in the preferences of the right-wing government of Israel. Accordingly, the political portion of the plan is indefinitely delayed and might never be announced. Keeping the full plan under wraps serves the Israeli government's purpose of holding out the promise of—but never delivering—peace with the Palestinians, while more facts are created on the ground.

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