Policy Uncertainty in the West Bank

Mitt Romney is being criticized for comments earlier today suggesting that the poor economic record seen in the West Bank is due to Palestinian "culture". There are probably many reasons why there is low growth in the West Bank and Gaza, but when people are living in an area that lacks a secure centralized state they will be unlikely to invest in capital goods. It is risky to build a new home or start a business when the basic day to day safety and stability can disappear at any time. This will reduce the capacity for long term growth. A stark example of what conservatives call "policy uncertainty".