Supporting the Middle East Peace Process through economic development

Following Israel’s historic disengagement from the Gaza Strip and Northern West Bank, there is a real opportunity for economic regeneration. The future economic development of the area is of critical importance to the success of the Middle East Peace Process.

This was recognised by the G8 at Gleneagles who welcomed and strongly endorsed proposals to support economic regeneration by James Wolfensohn, the Quartet’s Special Envoy for Gaza disengagement. G8 Heads committed to explore how best to support his proposals for the future. And at the recent informal meeting of European Finance Ministers in Manchester, EU member states backed measures to support economic regeneration in the West Bank and Gaza Strip.

To support this work, the Chancellor of the Exchequer has commissioned a report into the opportunities to support economic development to accompany and enhance the peace process.

The report will be led by Jon Cunliffe the UK’s G7 finance deputy and chairman of the IMFC Deputies Committee and Ed Balls, MP for Normanton and former chairman of the IMFC Deputies and Chief Economic Adviser to the Treasury. The report will be prepared for consideration before the end of the UK’s G8 and European presidencies.

Notes for editors

1. In advance of the historic disengagement from Gaza by the Israeli Government last month, in April, United States Secretary of State Condolezza Rice announced that James Wolfensohn, former President of the World Bank, would act as the special envoy of the quartet of peace partners (the US, European Union, the United Nations and Russia). Mr Wolfensohn’s remit is the co-ordination of the non-military aspects of the withdrawal and the revival of the Palestinian Authority. The work commissioned by the Chancellor today aims to support the economic regeneration aspect of this work.

2. Jon Cunliffe, 52, who is heading the Treasury work on this area, has been the Managing Director of the Treasury’s Macroeconomic Policy and International Directorate since 2002. In 2004 he succeeded Ed Balls as Chairman on the IMFC Deputies Committee. Mr Balls, 38, now MP for Normanton, who has agreed at the Chancellor’s request to co-author this report, served as Chief Economic Adviser to the Treasury from 1999 to 2004.

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