ABSTRACT
In the nearly six months since starting the sustained violence against Israel in September 2000, the Palestinian Authority has been left economically destitute. Israel now has the unenviable task of convincing the Arabs that their dreams of destruction will fail. The Palestinian campaign of terrorism rolls on, with twenty-two Israelis murdered in Tel Aviv in early January 2003. The Palestinian Authority is hardly Germany, but the analogy does hold: Palestinians will not give up on their aggressive ambitions vis- a-vis Israel until fully convinced that these cannot succeed. The greatest consequence of the Israeli retreat was felt among the Palestinians. That impact is partly practical, with Hezbollah providing instruction and arms to the Palestinian Authority. Israelis are beginning to note the change on the Palestinian side. Former Mossad head Ephraim Halevy has commented on "the buds of Palestinian recognition" of the mistake in turning to violence.
