NCPA - National Center for Policy Analysis

Putting A Price Tag On Mideast Peace

July 18, 2000

If Israeli-Palestinian negotiations are successful, American taxpayers will pay for billions of dollars to finance peace in the Mideast, say political observers.

  • Estimates of the financing range all the way from $15 billion to $150 billion.
  • U.S. foreign aid to Israel and Egypt following President Jimmy Carter's 1979 Camp David peace treaty continues to this day.
  • Leonard B. Zuza, a former official of the Office of Management and Budget, writes in the May-June edition of "Mideast Insight" that aid to the Middle East has cost the U.S. $230 billion in 1999 dollars over the past 25 years.
  • He estimates the demands for aid associated with the current negotiations at a whopping $264 billion.

Financing is wanted, for example, for resettlement of Israelis who now live on the Golan Heights claimed by Syria and in the areas east of Jerusalem coveted by the Palestinians. The Palestinians are demanding an estimated $137 billion for the lands they claim were confiscated from Palestinians who felt compelled to leave Israel during the 1948 war.

Source: George Melloan, "Looking at the Money Side of the Camp David Talks," Wall Street Journal, July 18, 2000.


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