Israel's Last-Ditch Peace Plan

Exhausted by violence, Israel's politicians consider a radical move. Is it time for economic separation?

Mohammed Helo sits in the murky shadows inside his pharmacy. He turned the lights off to save electricity when violence engulfed the West Bank in the past month and his customers stopped coming. It is an emblematic darkness. Helo's village, Bidya, had been a bright symbol of the links that peace had forged between Israelis and Palestinians. Israelis came to Bidya, only a few miles from Tel Aviv's suburbs, to spend $50 million a year on furniture, clothes and auto parts. Then came the new intifadeh. Four weeks ago, an Israeli was murdered there as he waited for his tires to...

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