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I'm going to assume that this has to be at least somewhat realistic as opposed to something like 67 borders and a peaceful democratic state where we're all happy with free movement and work for everyone with Israel.
I would probably start with taking a deal, probably wait until the next Israeli government, try to get as much land as possible and maybe even see about purchasing some from the other countries like Egypt that's unpopulated or barely populated. In exchange I would probably have to agree let the IDF in to fight the various terrorists groups that currently exist which would be to my benefit because they would be trying to kill me too. In fact, I would leverage the desire for a stable Palestine to get as much Israeli involvement as possible. I would negotiate reperations for the suffering that my people went through and request all the international money to be transferred to the new government. This will be used to improve living conditions for everyone first and foremost. There would also have to be a high amount of transparency to keep trust.
Then I would have to figure out how to sort out the various clans which wouldn't want to give up power. I would probably try creating some sort of Parliament with representatives from all the major clans and even try to get all the minor clans in. I wouldn't turn power over to them off the bat, but I would let then be involved in decision making processes to start with and hard commitments to turn over power later. They probably won't trust me, but I still have all the power and they get to watch me keep my word for a few years to hopefully build trust.
I then tackle the housing crisis and start several social programs to reduce poverty with my big pile of reperation money. Around this time I declare full right of return for Palestinian diaspora. Construction would also generate a bunch of jobs. I would completely reform the education system to be child oriented and also remove all the anti-semitic garbage. History especially would focus on the positives of having a state and being able to succeed on our own land as the Palestinian people. Child abuse and especially honor killings would be cracked down upon along with a full commitment to universal human rights. It would be a slow process to change the culture, but it's doable.
A lot of Palestinians already have jobs in Israel and I would work directly with Israel to make sure they they don't loose those and even create a government office to coordinate job opportunities across the boarder both ways. De-radicalization on both sides will be greatly helped by just experiencing each other as reasonable people. There are also plenty of left wing Israeli NGOs that would be happy to help. I would also piggyback off of Israel's vibrant tech and medical sectors to utilize my already highly educated population to build out our own too.
As time goes on and I deliver on promises, I can start turning over power to Parliament and declare elections for the members. The clans wouldn't want to be voted out, so I would sell it to them as increasing their legitimacy now that they're getting power and then support their campaigns to get them officially elected. Now that I've generated some reasonable stability for several years and the Israeli government starts to relax a bit, I start building out my own security forces and even doing joint exercises to build trust.
After probably about 20 years, I'll have been able to build Palestinian nationalism to the point that they're proud of their country and participate and demand a Democratic government which I'm delivering on. There will always be radicals, but they should be minimal and joint Intel sharing with Israel should help keep the bulk of them from committing any atrocities.
The end
I don't think that this is particularly likely to happen, but it may be doable with good Palestinian leadership. Some of the most likely outcomes at this point is probably annexation and naturalization of the West Bank and its Palestinians and either the same with Gaza or a small standalone state. Another idea that may work well would be the eight state solution where the majors clans would be given territory directly and would be able to form the Palestinian Emirates like the UAE. Overall I very much agree with Standing Together's stance of "We're both not going anywhere, so we have to learn to coexist." and am hopeful that it will some day happen one way or another.
Dude or dudette this was the best answer. Thanks you for the education and typing it all out.....no sarcasm
I'm happy to hear that I was helpful. I'm not any sort of expert, but a lot of this is basic state building. Add to that that the Palestinians actually have pretty high rates of education, already have access to a stable currency, and a regional power that they're already integrated with, they really have a leg up on most other countries starting out. The main sticking points are leadership, radicalization, and external forces like the IRGC backing terrorist groups.
As time goes on I really see this winding down one way or another in a couple decades. In 1948 basically the entire Arab world supported the Palestinians both directly and indirectly against Israel. Now Egypt and Jordan both have peace treaties and increasing economic ties with Israel. Saudi Arabia is coming onboard and the UAE and Bahrain already signed the Abraham accords. Palestinian maximalist goals look more and more unreasonable. Hamas hoped that their attack would trigger a whole regional war against Israel. It didn't, just IRGC proxies joined in. It didn't even put a stop to Saudi normalization, just delayed it a bit.
For the Israel side of it, there is more international pressure than ever to resolve this. The only hard dealbreaker IMO is keeping Hamas around in power. I just don't see any other way that has historically worked to remove a fascist regime than force. See the Whispered in Gaza series for what life is like under Hamas. Now we just need a good Palestinian leader to actually push building a positive future or Israel may just say screwed it, I'll do it myself, which would probably include annexation and citizenship.