The intricate economic ties between Israelis and Palestinians complicate their separation

The battle between Israel and Hamas in Gaza has given rise to two conflicting ideas about Palestinian statehood. While some in the international community believe that the issue should be pushed forward in light of current events, some in the Israeli government and public are against the idea of a Palestinian state and are calling for the dissolution of the Palestinian Authority, which governs parts of the West Bank. However, both sides are interconnected, with almost 200,000 Palestinians working in Israel and in territories occupied by Israel, adding millions of dollars annually to the Palestinian economy. The economic cooperation that exists is based on agreements from the 1990s. The movement of Palestinian workers has been stopped, leading to a loss of employment in the West Bank and Gaza. Israeli construction sector is also suffering due to the shortage. Both economies may need to wean themselves off of Palestinian laborers, and establish industries in the Palestinian territories. Furthermore, the current structure prohibits an independent Palestinian economy. The future of statehood is uncertain given that the US and Israeli governments do not seem to support it. Furthermore, the Palestinian economy is plagued by challenges including corruption and territorial division.