The political development nexus of economic peace in the Middle East: Paris protocol to the Oslo accords

This thesis examines if economic benefits, especially trade, can help shape the course of the Israeli-Palestinian conflict towards peace. It does so by scrutinizing the premise of economic peace directly derived from the liberal peace paradigm as the way to achieve economic development in the Middle East region. According to the liberal peace theory, economic interdependence leading to mutual benefits will support peace, irrespective of the comparative level of benefits achieved by each side. However, this thesis contends that in asymmetric conflicts, benefits should be relative to the balance of power between the two sides. It grounds its argument in the political-development nexus, accounting for temporal considerations. The thesis analyzes past economic and trade relations, along with trade policies, to assess their historical role in supporting liberal economic peace in the region. Subsequently, it investigates the potential for reshaping these mechanisms to contribute to resolving the Israeli-Palestinian conflict. Based on trade potential, the thesis outlines a pathway to economic peace in asymmetric conflicts through the economic diplomacy framework. This framework encompasses economic interdependence, incentives, and international law, that is positive sanctions and external sovereignty, as tools to facilitate progress towards peace.