Worldwide condemnation of the terrorist group Hamas’s rise to power had immediate results: Funding for the Palestinians from the United States and Europe—$1 billion annually—was cut off, leaving the Palestinians in an untenable situation.

Unable to pay its 150,000 employees, even the Palestinian government itself has fractured. Palestinian President Mahmoud Abbas has taken a stance against Hamas; the fighting has resulted in about 20 deaths.

Long story short, Israel’s enemies are flat broke and fighting among themselves. That’s the sort of situation Israel should promote. Instead, Israel—along with much of the international community—is making a concerted effort to defuse this success.

First of all, Israeli Prime Minister Ehud Olmert has announced his intention to give up more territory to the Arabs, this time possibly even extending into Jerusalem itself. This pronouncement is, to say the least, misguided. The history of the peace process shows that giving land away only gives terrorists a new staging ground to launch attacks.

Consider Gaza: Israel withdrew from Gaza under the premise that a smaller Israel is more defensible. Terrorists in Gaza immediately began staging attacks with the most powerful rockets at their disposal, now launched from a closer vantage point than previously possible. Israel’s withdrawal increased the capability of the terrorists. Giving up the West Bank will yield the same results.

Second, even though the financial chokehold on the Palestinians is working, the European Union, the United States, the United Nations and even Israel all seek ways to remove it—to effectively maintain the appearance of an embargo while removing its effects on the populace. Israel has withheld $55 million a month in tax revenue since Hamas took power. Because the Israelis fear a humanitarian crisis, the politicians are seeking a way to get the funds to the most needy, bypassing the government altogether. The problem, though, is that financial embargos only work because of the suffering they impose. The incentive for Palestinians to remove Hamas from power will only remain while needed funds are unavailable. Though the entire international community should understand that, Israel in particular is dealing with enemies that would destroy the country given the opportunity. Deliberately removing the advantage is senseless.

Third, and perhaps most perplexing of all, Israel is now providing weapons to the Palestinians. Nine hundred and fifty M16 rifles have been transferred from Jordan to President Abbas’s care. Granted, Hamas is an enemy to the Israeli state. The Palestinian Authority, though, is certainly not a friend. Arming one enemy to fight the other may have a twisted logic, but when they stop fighting each other, where will those weapons be turned?

It is obvious that Israel lacks the will to protect its homeland. Last June, Olmert told the Israel Policy Forum in New York, “We are tired of fighting, we are tired of being courageous, we are tired of winning, we are tired of defeating our enemies.”

Worse than simply lacking the will to win, though, Israel is actively working against its own interests.