WASHINGTON -- While no one was looking, something historic has happened in the Middle East. The Palestinian intifada is over, and the Palestinians have lost.

     For Israel, the victory is bitter. The last four years of terrorism have killed almost 1,000 Israelis and maimed thousands of others. But Israel has won strategically. The intent of the intifada was to demoralize Israel, destroy its economy, bring it to its knees and thus force it to withdraw and surrender to Palestinian demands, just as Israel withdrew in defeat from southern Lebanon in May 2000.

     That did not happen. Israel's economy was certainly wounded, but it is growing again. Tourism had dwindled to almost nothing at the height of the intifada, but tourists are returning. And the Israelis were never demoralized. They kept living their lives, the young people in particular returning to cafes and discos and buses just hours after a horrific bombing. Israelis turned out to be a lot tougher and braver than the Palestinians had imagined.

     The end of the intifada does not mean the end of terrorism. There was terrorism before the intifada and there will be terrorism to come. What has happened, however, is an end to systematic, regular, debilitating, unstoppable terror -- terror as a reliable weapon. At the height of the intifada, there were 9 suicide attacks in Israel killing 85 Israelis in just one month (March 2002). In the last three months, there have been none.

     The overall level of violence has been reduced by more than 70 percent. How did Israel do it? By ignoring its critics and launching a two-pronged campaign of self-defense.

     First, Israel targeted terrorist leaders -- attacks so hypocritically denounced by Westerners who, at the same time, cheer the hunt for, and demand the head of, Osama bin Laden. The top echelon of Hamas and other terror groups has been either arrested, killed, or driven underground. The others are now so afraid of Israeli precision and intelligence -- the last Hamas operative to be killed by missile was riding a motorcycle -- that they are forced to devote much of their time and energy to self-protection and concealment.

     Second, the fence. Only about a quarter of the separation fence has been built, but its effect is unmistakable. The northern part is already complete, and attacks into northern Israel have dwindled to almost nothing.

     This success does not just save innocent lives. It changes the strategic equation of the whole conflict.

     Yasser Arafat started the intifada in September 2000, just weeks after he had rejected at Camp David Israel's offer of withdrawal, settlement evacuation, sharing of Jerusalem and establishment of a Palestinian state. Arafat wanted all that, of course, but without having to make peace and recognize a Jewish state. Hence the terror campaign -- to force Israel to give it all up unilaterally. Continued...