“I have to admit, we, the private sector, have changed,” said Hulileh. “The mood used to be all the time to complain and say there is nothing we can do. And then the politicians were trying to create this atmosphere of resistance  resistance meant no development under occupation.”

Image Thomas L. Friedman Credit... Fred R. Conrad/The New York Times

Fayyad and his boss, President Mahmoud Abbas, changed that. Now the mood, said Hulileh, is that improving the Palestinian economy “is what will enable you to resist and be steadfast. Fayyad said to us: ‘You, the business community, are not responsible for ending occupation. You are responsible for employing people and getting ready for the state. And that means you have to be part of the global world, to export and import, so when the state will come you will not have a garbage yard. You will be ready.’ ”

Meeting in his Ramallah office two weeks ago, I found Fayyad upbeat. The economist-turned-politician seems more comfortable mixing with his constituents in the West Bank, where he has quietly built his popularity by delivering water wells, new schools  so there are no more double shifts  and a waste-water treatment facility. The most senior Israeli military people told me the new security force that Fayyad has built is the real deal  real enough that Israel has taken down most of the checkpoints inside the West Bank. So internal commerce and investment are starting to flow, and even some Gazans are moving there. “We may not be too far from a point of inflection,” Fayyad said to me.

The Abbas-Fayyad state-building effort is still fragile, and it rests on a small team of technocrats, Palestinian business elites and a new professional security force. The stronger this team grows, the more it challenges and will be challenged by some of the old-line Fatah Palestinian cadres in the West Bank, not to mention Hamas in Gaza. It is the only hope left, though, for a two-state solution, so it needs to be quietly supported.

The most important thing President Obama can do when he meets Israel’s prime minister, Bibi Netanyahu, on July 6 is to nudge him to begin gradually ceding control of major West Bank Palestinian cities to the Palestinian Authority so that Fayyad can show his people, as he puts it, that what he is building is an independent state “not an exercise in adapting to the permanence of occupation”  and so that Israel can test if the new Palestinian security forces really can keep the peace without Israel making nighttime raids. Nothing would strengthen Fayyadism more than that.