His [Romney's] comparison of the two economies did not take into account the stifling effect the Israeli occupation has had on the Palestinian economy in the West Bank, Gaza Strip and east Jerusalem — areas Israel captured in 1967 where the Palestinians hope to establish a state.
In the West Bank, Palestinians have only limited self-rule. Israel controls all border crossings in and out of the territory, and continues to restrict Palestinian trade and movement. Israel annexed east Jerusalem in 1967, but has invested much less heavily there than in Jewish west Jerusalem.
Kasie Hunt, AP, Romney comments at fundraiser outrage Palestinians
Putting aside how Kasie Hunt and the Associated Press fabricated the original story about Romney's "culture" quote, the deeper issue is the failure--or refusal--of the media to understand why the Palestinian Arabs are nowhere near as prosperous as Israel.
Middle East expert Barry Rubin writes that the media's bias prevents it from understanding why the Palestinians fail:
