the PLO thus achieved international legitimacy could it afford to recognise Israel and in November 1988 it accepted UN Resolution 242, contingent on acquisition of a Palestinian state in the occupied territories. The consequent US decision to start a dialogue with the PLO after it renounced terrorism, presented a new opportunity but was taken by the Israeli elite to be a threat against which the Labour and Likud parties joined in a ‘wall-to-wall coalition’ government.
However, the two main Israeli parties were drawing apart. The Likud
to take economic or military risks for such causes. The OIC did have some success in articulating a Muslim consensus on international issues that affected the Muslim world. Thus, after the 11 September events, the OIC condemned terrorism but rejected ‘any linkage between terrorism and rights of Islamic and Arab peoples, including the Palestinian and Lebanese … to self-determination … [and] resistance to foreign occupation [which are] legitimate rights enshrined in the United Nations charter’ (OIC Qatar communiqué, 10 October 2001 in Murden 2002: 204). Ironically
structural adjustment, of unpopular and inequitable peace treaties with Israel, of a US campaign against terrorism and so-called ‘rogue states’. This, however, spelled increased domestic risks. While the Middle East region has proven more resistant than others have to the neo-liberal rules of the international economy, even its incremental integration into this order threatens to undermine the very foundations of current states. Regimes that have built their legitimacy on a distributive social contract are being pushed toward a policy of trickle-down capitalism. At least