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helpful to look at the increasing level of economic cooperation between Israelis and Palestinians for signs that a better future is possible for the region. The benefits that this cooperation brings to West Bank citizens are of the utmost importance in driving the political process forward. Improved quality of life encourages moderation and enables the development of trust and a hope-filled horizon. Economic cooperation improves the prospects for achieving peace and Israelis and Palestinians living side-by-side in two states.

Israel is committed to attaining both economic and political advances with the Palestinians, with American and international support. That is why the Israeli government established the Ministry for Regional Cooperation, which I head.

As the minister responsible for coordinating government activities that promote cooperation and projects with the Palestinians, I am dedicated to the day-to-day actions that further our common interests and joint initiatives. This entails removing obstacles that stand in the way of actualizing projects. My meeting with the Palestinian Minister of Economics, Basam Huri, in September was the first meeting of an Israeli government minister with a Palestinian counterpart after the establishment of the new Israeli government. Unfortunately, since then, not only did Huri have to resign, but no other meetings with Palestinians have taken place. Everything is done through mediators. This lack of direct Palestinian contact with Israelis is preventing many projects from moving forward.

Nevertheless, the Ministry for Regional Cooperation created a minister-level committee, chaired by the prime minister, which has made important decisions to remove barriers and deal with issues such as water, sewage, electricity, environment and roads. We extended the hours of the Allenby crossing between Jordan and the West Bank until midnight, in order to expedite the transfer of goods into and out of the West Bank, and are introducing containers to improve efficiency.

The ministry is initiating numerous projects to increase cooperation with Palestinians and create an important impetus for growth. These include:

Red Sea-Dead Sea Canal Project, with Jordanian officials and World Bank President Robert Zoellik. Jalame Industrial Zone, with a team from the Quartet -- the United Nations, the United States, the European Union and Russia. Jalame crossing point, enabling Israeli Arabs to go to Nablus, more than 7,000 vehicles every Saturday. "Japanese" Industrial Zone in Jericho, with Japanese representatives. "French" Industrial Zone in Bethlehem, with French representatives.

These and other steps already taken and soon to be carried out are intended by the Israeli government to support Palestinian development, encourage the flow of commerce in the Palestinian areas, enhance quality of life there and, most important, tangibly demonstrate Israel's commitment to reaching an economic and political peace with our Palestinian neighbors.

With these and other measures we say to them: "Come to the table and engage directly with Israel." We hope to bring not only Palestinians, but other countries in the Arab and Muslim world, such as Egypt, Jordan, Turkey and Persian Gulf countries.

In taking such steps, Israel is taking a risk with our security and with our citizens' lives. We pulled out of Gaza unilaterally with hopes for a better future for both sides, and began to work with Palestinians on economic development. The actual outcome, however, was a Hamas coup and thousands of missiles and rockets launched into Israel. Understandably, the Israeli public is now much more resistant to unilateral withdrawals or concessions.

Nevertheless, the Israeli government remains committed to peace and a better future for Israelis and Palestinians, living side-by-side in two states. Step-by-step, we are making progress. We are not yet where we want to be. We hope to have partners for peace and prosperity.

Silvan Shalom is vice prime minister and minister for regional development of Israel.