Strategic Assessment

Despite claiming full and eternal sovereignty over a united Jerusalem, Israel over the past five decades has consistently neglected the eastern portion of the city, and consequently the socioeconomic reality there has become both an economic burden and a security risk to the state. In May 2018, the government decided to approve a comprehensive aid package for East Jerusalem aimed at reducing gaps between this population and other sectors, and integrating the city’s Palestinian residents into Israeli society and the Israeli economy. The plan –2 billion NIS – is unprecedented in size and in the scope of areas it is designed to cover. The government decision is of legal and ethical significance, but also bears important political and policy implications. Its implementation will require the government to overcome many legal and practical obstacles, include all the neighborhoods in the city’s eastern area in the plan, convince the local residents of the plan’s positive elements, and take political action to soften resistance that can be expected from the Palestinian Authority, Arab states, and the international community.