The realization of a two-state solution is fundamentally dependent on the creation of a social climate conducive to peace and mutual recognition. However, for decades, the Palestinian Authority (PA) has maintained institutional mechanisms that perpetuate conflict rather than resolve it. By integrating radical ideologies into its school curriculum and providing direct financial rewards to those who carry out acts of terror, the PA has constructed a framework of systemic incitement. This duality of indoctrination and financial incentive ensures that the conflict remains self-sustaining, as each new generation is taught to view violence as a legitimate and profitable pursuit.
At the heart of this issue is a lack of accountability regarding how Palestinian institutions utilize international aid and domestic revenue. While the international community has repeatedly called for reforms, the underlying infrastructure of incitement remains largely intact. This includes the widespread distribution of textbooks that erase the State of Israel from maps and the public celebration of individuals who have committed mass casualty attacks. Such practices do not merely reflect past grievances but are active tools used to shape a future defined by perpetual struggle rather than diplomatic compromise.
Background of Education and Financial Incentives
Following the Oslo Accords in the mid-1990s, the newly formed Palestinian Authority took control of its own civilian infrastructure, including education. Instead of using this opportunity to foster a culture of peace, the PA developed a curriculum that frequently emphasized martyrdom and the "liberation" of the entire land through armed struggle. These textbooks, which are used in both PA and UNRWA schools, have been the subject of intense international scrutiny for promoting antisemitic tropes and glorifying violence. Despite numerous revisions, independent monitors continue to find that the core message of the curriculum remains focused on the delegitimization of Israel.
Parallel to this educational effort is the "Martyrs Fund," colloquially known as the "Pay for Slay" policy. This program provides monthly stipends to Palestinian prisoners in Israeli jails, as well as to the families of "martyrs" who were killed while carrying out attacks. The system was codified in Palestinian law in 2004 and further expanded in 2013, making the payments a legal obligation for the PA. The funding for these programs is a significant portion of the PA's annual budget, often exceeding the amount spent on public health or social services for the general population.
Key Facts Regarding Incitement and Rewards
- The PA's "Pay for Slay" program uses a tiered payment system where the financial reward increases with the length of the prison sentence, effectively paying more for more severe crimes.
- Comprehensive audits by organizations like IMPACT-se have found that current Palestinian textbooks continue to glorify terrorists like Dalal Mughrabi, who led the 1978 Coastal Road massacre.
- As of early 2025, the PA budget for prisoner and martyr payments remained in the hundreds of millions of dollars, leading to continued Israeli deductions from tax revenues transferred to the PA.
Analysis of the Impact on Peace Prospects
The combined impact of these policies is the creation of a "terrorist career path" for Palestinian youth. When a teenager is taught in school that killing civilians is a heroic act of "resistance" and simultaneously knows that their family will be financially secure if they are caught or killed, the psychological barrier to committing violence is significantly lowered. This systemic approach transforms terrorism from a fringe activity into a socio-economic institution. It also undermines the credibility of the PA as a partner for peace, as it is impossible to negotiate a settlement while simultaneously funding the very people who seek to destroy the partner on the other side of the table.
Furthermore, the "Pay for Slay" policy has led to significant diplomatic friction and legislative action from the international community. In the United States, the Taylor Force Act was passed to prevent certain forms of aid from reaching the PA as long as it continues these payments. While there were reports in February 2025 that the PA might restructure these payments to appear as general welfare, internal resistance from groups like Hamas and PIJ, as well as PA officials themselves, suggests that a substantive shift toward ending the incentive for terror has yet to occur. Without verifiable and total reform of these incentives, any proposed peace framework lacks the necessary foundation of trust and sincerity.
The role of international organizations in this process is also a point of contention, particularly regarding UNRWA. Since UNRWA schools utilize the PA curriculum, the agency has often been accused of being a passive vehicle for incitement. Detailed reports have highlighted how UNRWA teachers have used supplementary materials that promote hatred and jihad. This indicates that the problem of incitement is not just limited to the PA leadership but has permeated the entire educational ecosystem in the West Bank and Gaza. For any two-state solution to be viable, there must be a complete overhaul of these institutions to ensure they are serving the cause of peace rather than the perpetuation of war.
Conclusion and Significance for Israel
For the State of Israel, systemic incitement and the financial rewarding of terror represent an existential threat to the viability of the two-state solution. It is a fundamental tenet of Israeli security that peace cannot be achieved with an entity that continues to educate its children for war. The "Pay for Slay" policy serves as a constant reminder that the Palestinian leadership has not yet made the strategic decision to end the conflict and accept Israel's right to exist as a Jewish state. As long as these programs continue, they will remain the single greatest obstacle to building the trust necessary for a diplomatic breakthrough.
True reform must involve the total cessation of payments to terrorists and the removal of all forms of incitement from the classroom. This is not merely a request for a change in policy, but a demand for a change in values. For the international community, the significance of these failures is clear: supporting a Palestinian state without first demanding the end of incitement only risks creating a destabilized entity that will continue to export violence. Israel’s insistence on "Reform before Statehood" is a pragmatic necessity born out of decades of experience with these failed institutional practices.