It’ll be interesting to see how things play out with the recent victory of Hamas in the Palestinian elections. Those saying that this victory by a terrorist organization fundamentally destroys Bush’s rationale that democracy brings peace may have spoken too soon.

The Palestinian Authority faces a budget crisis. According to an article in the Baltimore Sun today, “the Palestinian Authority put off paying the January salaries of 137,000 government employees yesterday for at least two weeks as it struggles to find new sources of funding.” The World Bank is withholding aid. The US and the European Union threaten to withhold aid.

If Hamas refuses to recognize Israel and renounce terrorism, they could face a huge economic crisis. People will be out of jobs. A big question is: Will they blame the West, or will they blame their elected leaders?

When I read Dispatch from Hamastan, I got the impression that the voters weren’t overwhelmed with all of Hamas’s platform. What stood out for me especially was that “one post-election poll found that as many as three out of four Palestinians hope Hamas will step back from its calls for armed conflict with Israel.”

As things are going, it seems as if Hamas will not recognize Israel, even to prevent such a budget crisis. Or at least, so said senior Hamas leader Khaled Meshaal. [NY Times article, registration required.]

I hope the West, and perhaps the rest of the world, shows solidarity in using their economic sticks against Hamas if Hamas does not do what it needs to do. Perhaps with strikes, demonstrations, or riots, on hand, Hamas will be forced to do so. If the violent extremists are truly a minority, we will see the real power of democracy, and what it means to be accountable to the people.

Unless, the answer to the question I posed early on is that the people will blame the West for their troubles. Even if this happens, withholding economic aid is the right course of action, lest the world legitimize terrorism. In fact, I would propose an increase in economic aid if Hamas recognizes Israel and rejects terror, just as an added incentive — a carrot as counterweight to the stick.

My faith in the power of democracy, as always, remains unshaken, and will remain resolute no matter what the consequences of this crisis. Even the most volatile democracy is always preferable to the most peaceful tyranny.