Japan's Concept for Creating the Corridor for Peace and Prosperity
(Background Paper)

July, 2006
Government of Japan

Basic idea

• For achieving sustainable peace in the Middle East, it is essential for the peoples in the region to enjoy a peace dividend and for Arabs and Israelis to promote confidence among them, especially for Palestinians and Israelis.
• The path towards creating peace between Israel and Palestine has faced serious challenges. However, the two-state solution is the only way and it is important to make efforts towards co-existence and co-prosperity while at the same time, managing the current situation.
• For this to happen, it is crucial to establish a viable state for Palestinians accompanied with sustainable economic development through the strengthening of their partnership with neighboring countries, especially Israel and Jordan.
• The role of the private sector, coupled with the development of the public private partnership (PPP) is crucial in achieving sustainable economic development. In the West Bank, agriculture and agro-industry could be a driving force for sustainable economic development.
• Not only are the results of cooperation projects important but so is the process in terms of promoting confidence-building.

Japan proposes its concept of creating "the corridor for peace and prosperity" in cooperation with Israelis, Palestinians and Jordanians. The concept is to work collaboratively to materialize projects that promote regional cooperation for the prosperity of the region, such as establishing an agro-industrial park in the West Bank and facilitating the transportation of goods. Only when the circumstances permit Japan will move this concept forward by initiating a unit to achieve these goals. Japan is ready to host the first meeting of the unit whenever convenient to all parties concerned.

• From a longer perspective, Japan is keen to act as a facilitator to promote confidence and regional economic cooperation between Israelis and Arabs.
• Needless to say, this would only become reality when all the stakeholders remain committed to the cause of peace all the way through the end and by steadfastly exerting every effort to cooperate with each other for the prosperity of the peoples in the region.

This proposal represents an even stronger commitment by Japan and reflects a deeper engagement in the peace-building efforts for the region and will generate additional hope for the future.

Concrete project examples (tentative)

1. Establishing an Agro-Industrial Park

• Japan is ready to prepare a feasibility study (F/S) for this project. Based on the results of the F/S, various approaches to financing this project will be considered.
• Products will be transported to a distribution center to be built on the Jordanian side, and then shipped out to markets abroad.
• The private sector is encouraged to participate in this project.
• Capacity building is crucial for success of the project. Japan is ready to extend technical assistance for that purpose.

2. Facilitating the transportation of goods

• Japan is ready to finance a project to facilitate the transportation, mainly, products produced from the above-mentioned agro-industrial park to the above-mentioned distribution center of goods.
• A border control methodology should be established, giving due consideration to both security concerns as well as the impact on the regional economic development.