People from the Israeli, Palestinian, and US governments tell me that the best was to prepare for peace there is to help build up businesses and the economy.
I've been working with the microfinance wing of CHF International who run Ryada (`pioneer' in Arabic), a micro-lending program that gives out loans to small businesses and homeowners in the West Bank that commercial banks won't touch. They have over 4000 active borrowers
and a 98% repayment rate. (No financial crisis there.)
This is part of a whole series of programs supporting democratic reform, job creation and economic development – much needed in the West Bank.
The folks at CHF International do a lot of good work in the area, more info here.