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An Alternative
View of the Israeli-Palestinian Conflict
by Daniel Ades, MALD '03
In the wake of the September 11th attacks many of us have
wondered: What is fundamentally wrong with U.S. and Israeli policy towards Palestine? Why
is there so much discontent and anger in the region? Since a synopsis of "who is to
blame historically" for the conflict would require a multi-volume book that would
satisfy none of the parties, I will only attempt to analyze economic and social data from
the past two decades and provide my set of suggestions to bring a lasting peace to the
region. First and foremost, I only intend to demonstrate my specific viewpoint, rather
than to offend particular individuals. I do not wish to be politically correct either,
which often (and unfortunately) mutes important perspectives in the international
community. My attempt is to simply put forward the evidence that has surfaced in the last
ten years of a failed Palestinian State.
With a GDP per capita of around $1,060 (1999 estimate), the West Bank and Gaza Strip
(WBGS) region has been experiencing a financial downturn during this last decade, a
phenomenon rarely evidenced in modern societies. Until the early 1990s, which also marked
the start of the current peace process, the WBGS was growing at an average of 4.2 percent
annually (from 1980 to 1990). At the same time, its population growth rate at about 4.6
percent was amongst the highest in the world. This generated an almost stagnant GDP per
capita growth. However, special growth regions inside the occupied territories kept
unemployment in the region at an average below 5 percent.
The prospects seemed to be encouraging: the number of secular primary and secondary
schools built in the region started to increase, allowing Palestinians to compete for
places in local and foreign universities. This in turn created a small professional class,
which generated a wealth creating process in the area. Many Israeli industries were
present in the region, providing many jobs. I want to be clear that I am not arguing that
Israel provided equal benefits to the occupied territories compared with the rest of the
country. Nonetheless, relative progress was
being achieved at this time.
Unfortunately, the situation changed dramatically in the 1990s with the advent of the
peace process. Between 1992 and 1996, real per capita GDP declined by 36.1 percent. More worrisome, dangerous unemployment rates of
over 20 persisted throughout the 1990s to this date.
What has gone wrong and why did the peace process fail to bring prosperity, security, and
development? Many would argue that it is the result of hardships imposed by Israel due to
its security concerns. Although Israeli policies might partially explain the problem and
is a sufficiently satisfying explanation to the international media, it certainly does not
explain the entire picture. The full story is a much harsher (and not as
"sellable") reality. The financial hardships experienced by Palestinians today
are not only the results of Israeli policy. Rather,
the failed government of the Palestinian Authority (PA) was responsible for this economic
decline as well.
In the early 1990s Israel permitted relative autonomy to the occupied territories and
granted the PA power over schools, civil police, and many other administrative issues.
While Israel collected the taxes, these funds where turned to the PA, which had full
discretion over where to allocate funds. As a result, in less than a decade of PA
governance, there are now few public secular schools left. Many were closed, some were
turned into traditional Muslim education centers, and some became the bases for Islamic
fundamentalism and political activism.
This resulted in a significant reduction of Palestinians able to compete for vacancies at
foreign universities, consequently destroying the main human capital creation processes
existent outside the Palestinian Diaspora. Moreover, without prospects for being educated
or obtaining a job, where else will youths find stability but in the revolutionary causes
of fundamentalism? Moreover, where did the
funds earmarked for the schools and given to the PA go? Simple: the money fed corruption.
Most of the diverted funds allocated to schools and hospitals went into illegal arms
trade, which ironically brought in weapons and armaments for use against Israel in today's
combats.
But why isn't corruption in the territories portrayed in political discussions
worldwide? Part of the answer can be explained by the lack of freedom of speech. To
illustrate, most remember the Italian cameramen from RAI that filmed the beating up and
killing of an Israeli soldier last year. Afraid of retaliation from having published the
footage, the journalist is currently still hiding from various threats. How can we expect
an in-depth investigation with such repression of expression?
In order to become a transparent and viable state, the Palestinians must build a civil
society in which its people are the basis for governance. For instance, in over 8 years
there hasn't been one election for any political posts. Instead of dealing with its
population growth rates, instead of creating jobs, instead of maintaining a sense of
political stability that would encourage foreign investment, instead of building schools,
instead of cracking down on Islamic fundamentalism, the PA spends its time and resources
attracting international attention to their cause by encouraging innocent youths to
actively confront the Israeli army. In such
an environment, there is no basis for a stable government to emerge.
In order for serious discussions about a Palestinian state to begin, an
institutional basis for economic growth, a sound political establishment, the closure of
fundamentalist schools, and the eradication of illegal arms trade must first be achieved.
Without these foundations, we run the serious risk of creating an institutionalized
terrorist, if not a criminal, state. Imagine
another Taliban that, instead of hating American interests, hates the Jewish
establishment. No country could tolerate a neighbor that harbors known
terrorists and allows for the murder of cabinet ministers.
Golda Meir, Israeli prime minister in the 1960s, once observed that there would
only be peace in Israel when Islamic fundamentalists love their children more than they
hate the Jews.
I am not suggesting the reoccupation of Palestine. Instead, a viable
option is to give aid and tax revenues conditional on: a) the creation of accountability
standards overseen by a multinational consultancy; b) the creation of an educational
system based on secular topics such as biology and math even if mixed with traditional
practices of Islam; c) the creation of a democratic political system; and d) the promotion
of freedom of speech. We can start talking about an independent Palestinian State only
when the PA proves itself capable of running an effective and transparent state, when we
are sure that resources intended for the development of its people are not diverted into
illegal arms trade, and only when peace, not war, is the driving spirit of a society.
Daniel Ades was member of a Jewish Youth movement in Brazil
for ten years. He was editor of their weekly newspaper and representative to the South
American Jewish Youth Council for the State of Sao Paulo. His current interests at
Fletcher include corruption and development, as well as micro-credit.
Comments? Write us at letter@fletcherledger.com
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