This paper invites the Arab states to be proactive in terms of undertaking the initiative endorsed by the Beirut Summit and based upon the Abdullah Plan for peace with Israel.  Peace is challenged by spiralling levels of violence. Attitudes have further hardened following the construction of a wall through urban areas of the West Bank and a fence throughout the remainder of the territories from north to south. Despite present constraints, these barriers may be movable but it is not plausible that they will be removed in the foreseeable future. Their continued presence impacts severely on trade and the entire region is performing well below its economic potential. Many Palestinians have been left with a sense of despair, which can only encourage extremism.