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> An area steeped in sectarian violence and racism

So they say. In the meanwhile, Israel has taken almost all the land. It's a very convenient racist and sectarian hatred this of the Palestinians, it has a return measurable in square kms, hundreds of thousands of low price houses, arable land and water resources. For the Israelis, of course.

Problems are always infinitely complicated in the words of those who profit from keeping them unsolved.

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OP's context went back thousands of years, so maybe I'd be more accurate to say sectarian violence and tribalism? Either way, maybe there's a hint in your comment. Finding ways to add sharp external costs to all parties involved? Whether Israel's state sanctioned abuse of Palestinians, Hamas or any other faction's violence, and likely also costs to neighboring countries who continue to have motivations other than seeking resolution. Do methods to add costs/pressures like that exist?

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