Zero, Bethlehem isn't in Israel and is governed by the palestinian authority. Israel has no role there other than security. Criminal activity is dealt with by the palestinian police and justice system. It's unfortunate, but I don't think it's going to change, it's majority Muslim now, and when it was a Christian town there was never any desire to associate with Israel that I'm aware of.
No, it's a regretable mess.
The Pope wants to start people thinking about reciprocity. If Muslims want rights and fair treatment in Christian or secular countries, then they should grant similar treatment to Christians (and Jews and others) in their countries.
Unfortunately, the prospects for reciprocity of religious freedom are exceedingly small. But at least the Pope is trying to bring this to the attention of America, Europe, Australia, and so forth. If nothing else, it should weaken the multicultural insanity to ask why we should be tolerant of Muslims if they absolutely refuse to reciprocate? And what about all those victims of Muslim intolerance?