The 4th Herzliya Conference 2003
When PA leader Yasser Arafat eventually leaves the stage, a new chapter will be opened in Palestinian political history will entail new realities and bring to the fore new forces and fresh dynamics. First and foremost, Arafat's departure will signal a changing of the guards from the "old guard" Diaspora leadership of the PLO to the "young guard" leadership from the West Bank and Gaza. However, how effective will this new generation of leaders be? The present trend towards internal fragmentation of the Palestinian Authority, exacerbated by Israeli security measures may devoid any future political leadership of true control on the ground – control which will devolve to a multitude of local warlords – each in his own territory. Under such circumstances, Israel will lack a clear Palestinian interlocutor both for deterrence and for political negotiations, and will have to invest more assets vis-à-vis a plethora of local elements. At the end of the day, however, building a viable Palestinian leadership, which will both desire Peace and stability and be capable of working towards these goals, calls for economic reforms within the PA, toppling the monopolies and injecting into the system new local economic forces. In such an endeavor, Israel may find allies in the Western world and among Israel's moderate Arab neighbors.