He claimed success in assisting development in the Palestinian territories since taking up his role in summer 2007, but suggested the recent political situation had been an obstacle. He expressed hope, however, that the commitment to peace from US President Barack Obama, the Israeli government and the Arab world could bear fruit.
Mr Blair predicted that Mr Obama would use a speech in Egypt on Thursday to signal the extent of the new American administration's "serious undertaking" in the Middle East.
Asked about his achievements, he pointed to improvements in housing, tourism, mobile telephones, and access and movements for the Palestinian people.
He added that there was now a "new sense of momentum towards peace", with the White House "fully committed" to the region, a settled Israeli government and the Arab world demonstrating "a renewed desire for partnership".