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The United States, the European Union, Russia, and the United Nations — along with Israel and the Palestinian Authority — all officially support the establishment of an independent Palestinian state. This book summarizes research conducted by the RAND Corporation from September 2002 to September 2004 to develop recommendations, based on rigorous analysis, about steps that Palestinians, Israel, the United States, and the international community could take to promote the success of a new state if it is established. The first study identified the requirements for a successful Palestinian state. The study team surveyed a broad array of political, economic, social, resource, and environmental challenges that a new Palestinian state would face. They also estimated the investment required over the first ten years of statehood to help ensure security, build infrastructure, and facilitate the success of the new state. The second study explored options for addressing the housing, transportation, and related infrastructure needs of a burgeoning Palestinian population. The study explicitly considered issues related to potential immigration to a new Palestinian state of a substantial number of diaspora Palestinian refugees. The research team developed initial cost estimates for implementing their recommendations. The cost estimates developed in these studies suggest that the funding necessary to implement RAND’s recommendations is within the capacity of combined international resources and private investors. RAND’s analyses assume a peace accord, but many of the recommendations in both studies could be implemented constructively prior to Palestinian independence. Readers in search of more information should consult the respective volumes: The RAND Palestinian State Study Team, Building a Successful Palestinian State, Santa Monica, Calif.: The RAND Corporation, MG-146-1-DCR, 2007; and Doug Suisman, Steven N. Simon, Glenn E. Robinson, C. Ross Anthony, and Michael Schoenbaum, The Arc: A Formal Structure for a Palestinian State, Santa Monica, Calif.: RAND Corporation, MG-327-1-GG, 2007.

Primary funding for the research described in this report was provided by private individuals. Funding for Building a Successful Palestinian State was provided by a generous gift from David and Carol Richards. The Arc: A Formal Structure for a Palestinian State was initiated by Guilford Glazer and funded by his generous gift. This research in the public interest was also supported by RAND, using discretionary funds made possible by the generosity of RAND’s other donors and the earnings on client-funded research.

This report is part of the RAND monograph series. RAND monographs present major research findings that address the challenges facing the public and private sectors. All RAND monographs undergo rigorous peer review to ensure high standards for research quality and objectivity.

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