It has become de rigueur in Europe and the Arab world to proclaim that the problem in the Middle East is that the Bush administration is not "engaged" in restarting the Israeli-Palestinian peace process. Yet the United States has been engaged in important ways, and hopeful signs are now coming from Israel and the Palestinians. To exploit this moment, the European and Arab states themselves must now also become engaged. While everyone was focused on Iraq, some promising developments have occurred. First, Yasir Arafat was forced to accept Salam Fayyad, a highly respected veteran of the International Monetary Fund, as...