Originally the Jewish settlements were constructed in order to stop Palestinians from obtaining their own state and to establish a buffer zone between Israel and its Arab neighbors.
Settlers have largely come to the region for economic reasons. Israel’s government offers certain bonuses to people who are willing to settle there. Goods produced in the West Bank and East Jerusalem are subsidized by the government. Tax cuts and other economic incentives motivate Israelis to move to the occupied territories. On the other side there are religious fanatics who believe they are returning to their biblical homeland. They regard Arabs as aliens in their country.
Most new settlers enjoy the advantages of their new home. While Israeli settlements offer jobs to Palestinians who would otherwise be unemployed, there is regular tension between settlers and Arabs.
Many settlements are built on the best farming land. Palestinians accuse Israelis of consuming too much water and leaving them only little. Reports of violence on the side of settlers who lash out at Palestinians are not uncommon.
The future of the Jewish settlements is only one issue that needs to be resolved in order to achieve a lasting peace agreement in the Middle East. Other issues are the future of Jerusalem and the borders between Israel and a new Palestinian state.