The Peace Process: Where Do We Go from Here? – 2006 World Economic Forum Annual Meeting (Davos, Switzerland) – WEF Press release/Non-UN document

Waking up early to find a new, complex moment in Middle East politics, moderator Peter David, Foreign Editor, The Economist, United Kingdom, asked panellists to comment on the implications of a Hamas election victory.

Mazen T. Sinokrot, Minister of Economy of the Palestinian Authority, said that although the results are a wake-up call and a protest vote to what has been happening in the region, they clearly indicate a democratic process which Palestinians should be proud of. As Hamas assumes a new level of responsibility in government, he said, the organization will have to revise its tactics, and reminded participants that the PLO had changed its charter that called for the destruction of Israel.

Avishay Braverman, President, Ben-Gurion University of the Negev, Israel, was more pessimistic about the election results, saying that the peace process had failed and that Israel would not negotiate with a government that advocates violence and calls for the demise of his country. However, he is optimistic that "collective rationality" will eventually come to the region and a two-state solution will be possible.

Richard N. Haass, President, Council on Foreign Relations, USA, observed that political Islam is currently the driving force in the Arab world. Israel does not currently have a partner for peace, and if there is a peace process, it won't be a bilateral process, at least not for several years.

Robert Zoellick, US Deputy Secretary of State, said that the Palestinian people voted for a choice and now they are going to have to decide on how to proceed. Until then, however, he sees more "peace actions" rather than a more traditional peace process taking place, and a lot depends, in his opinion, on how the Palestinian Authority sorts itself out.

Amre Moussa, Secretary-General, League of Arab States, Cairo, said that there is now a period of co-habitation between a Fatah president and a Hamas government. "Any organization in a seat of government has to respond to the needs of the people," he added. "The question is: what can Hamas do and what can we do?" He said the Arab community would commit itself to the Beirut peace initiative, but that Israel would have to reconsider many of its policies vis-à-vis the Palestinians, and make it easy for Palestinians to develop.

James D. Wolfensohn, Chairman, Wolfensohn & Company, USA; the peace Quartet's Special Envoy for Gaza Disengagement, New York, said that there needs to be some period of assessment following the elections, but there isn't much time. The Palestinian government is close to bankruptcy. "If you don't have money to pay Palestinian employees, you are going to have chaos," he warned, adding that the financial situation is going to determine negotiations and acts on the ground.

Mohammad A. Mustafa, Chief Executive Officer, Palestine Investment Fund (PIF), Palestinian Territories, said that it will be a challenge to keep people paid and employed. A viable Palestinian economy could change the situation, he added, but a lot would have to depend on a dynamic Palestinian private sector that enjoys movement of goods and people, and has access to the rest of the world.

Joseph Bachar, Director-General, Ministry of Finance of Israel, commented that Israel has an interest in seeing a viable Palestinian economy, but there will be practical problems in dealing with a government that doesn't recognize Israel's right to exist. Noting that the Palestinian economy is heavily dependent on the Israeli economy, he said that Israelis and Palestinians would have to cooperate one way or another.