The Impact of Incentives for Reconciliation in the Holy City–How International Aid for the Palestinians Contributed to the Expanding of Israeli Control over East Jerusalem

This article analyses the implications of international aid for the failure of Palestinian-Israeli reconciliation in Jerusalem. Donors were motivated to contribute to efforts to reach a sustainable Palestinian-Israeli peace to be based on Israeli withdrawal to the 1967 borders and the establishment of a Palestinian state with East Jerusalem as its capital. In this article the main argument is that in practice, due to political considerations, international aid at least partially harmed the peace process and helped Israel enhance its control over East Jerusalem and harmed the efforts to reach a reconciliation in the holy city.