Publisher's note: WorldMoneyWatch normally sticks to strictly economic, not political, issues. However, during this season of "Peace on Earth" we wanted to introduce you to a good summary of this complex situation by someone who should know.

Peace in the Middle East -- A summary by President Carter

December 27, 2006

President Jimmy Carter, Nobel Peace Prize winner for his work in the Middle East, has recently published a book that summarizes his knowledgeable position on what needs to happen to establish lasting peace in the Middle East.

He recommends that Israel and Palestine establish two separate countries with internationally recognized boundaries. This means that Israel must withdraw from occupied territories, and that Palestine must then recognize Israel’s right to exist. This is consistent with U.S. policy, agreements between Israel and Palestine established in 1978 and 1993, the condition under which the Arab League agreed to recognize Israel at all, and the Quartet's Roadmap for Peace.

His purpose behind writing the book is to restart formal peace talks, now absent for six years, that he says must be led by either the U.S. unilaterally, or by the Quartet. Without such a plan for permanent peace, instability within the Middle East will continue.

What President Carter’s plan means:
Continuation of current policies in the Middle East will certainly lead to further war and violence, which creates further volatility in the global economy, especially regarding oil prices. Although the economy is set to continue further growth, the increases in volatility means higher risk, and greater chance for some type of cataclysmic event that could cause a severe economic disruption, similar to the 1997 Asian currency crisis.

Action steps:
Before taking a position on the MIddle East, make sure you are fully familiar with the facts. Emotions run high on this issue, as it touches on nationalism, racism, and religion. Read President Carter’s summary of his key points, or even read the book, itself “Palestine Peace Not Apartheid” to help you gain the facts needed to understand this important issue.

Source: The Carter Center web site, “How I See Palestine”, December 8, 2006.