Wednesday, May 30, 2012

Extractive Institutions in Israel

Daron Acemoglu, the Turkish American scientist, who discovered why nations fail,  has found the solution to the seemingly intractable Arab-Israeli conflict.

His idea is very simple, nations fail, when one group extracts, or exploits the work of other group. I believe Israelis are in one of those, one in a thousand years situations, when they can start a new stage of the Middle East future.

When England, at the end of the Black Death, had to negotiate with the working class, new rules to resolve conflict, a new era started.

After the Arab Spring, Israel can likewise, initiate such a revolution.

The note below illustrates the unique political situation of Israel. First the Palestinians go unilaterally to the UN, then the Israelis, unilaterally, if Mr. Barak advice is followed, define the borders between Israel and Palestine.

I propose that Israel and Palestine get together at the UN, and sign a Peace Treaty, recognizing the right of the two people to exist, like in England after the 1688 Glorious Revolution.

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