For several years the Institute for Social and Economic Policy at Harvard's Kennedy School of Government has been working with Arab and Israeli economists to see what the economic benefits of Arab-Israeli peace might be. This conference volume is the first major result of the institute's work, and it is a good first step. No one pretends that political issues in the Middle East can be dissolved through economic cooperation. Indeed, there is even considerable skepticism about the extent of possible regional development and the likely size of any "peace dividends." But reduced military expenditures, a more stable investment climate and some region-wide development efforts seem to hold out promises of contributing to the economic well-being of the area. The papers are uneven, but cover a wide range of topics and will be of interest to specialists. The mere fact that Israeli and Arab economists are engaging one another on this level of discourse is already an encouraging sign for the future.