Michael Oren writes in the WSJ:

In view of its performance over the past 14 years, the Palestinian Authority under Fatah can be counted on to squander most or all of the vast sums now being given to it by the U.S. and the international community. More gunmen will be hired and better weapons procured, but in the absence of a unified command and a leadership worth fighting for, PA soldiers will perform no more credibly than they did in Gaza. Mr. Abbas will continue to denounce terror while ignoring the terrorist units within his own organization, while PA imams will persist in preaching their jihadist sermons. … [T]he peace talks will inexorably grind to a halt. In the end, the Palestinian people will remain impoverished, divided and stateless, and more than ever amenable to the purist polity of Hamas. … Clearly no progress toward Palestinian statehood can be made before Fatah has reformed itself financially, ideologically and structurally. Even under the most propitious circumstances this process is certain to take many years — longer if economic aid and political support are provided to the PA unconditionally. …

So what’s the alternative? Oren continues:

The U.S., together with its Quartet partners, can work to establish areas of extensive Palestinian autonomy in the West Bank. Within these districts, local Palestinian leaders will be fully empowered to manage all aspects of daily life including health, education and resource management. A national assembly, comprised of representatives from each district, will meet regularly to deliberate issues of West Bank-wide concern. Security, however, will be jointly administered by Israel and Jordan. The Jordanian involvement is crucial to convincing Palestinians that the status quo of occupation has ended and they may in the future assume full responsibility for their internal defense. Such an arrangement will benefit Jordan as well, by facilitating its efforts to fight radicalism and stem the flight of Palestinians over its borders.

More here.