A Palestinian financial crisis? Problems with donor countries? Economist Raja Khalidi offers some different explanations for the PA’s fiscal problems.
Economy
Anyone who asserts that there is no construction in Israel should peruse OECD data on building beyond the Green Line. 9% of GDP beyond the Green Line comes from construction, compared with 4.7% of GDP within the Green Line. The difference is even greater for residential construction: within the Green Line, residential construction accounts for just over a fifth of investment; beyond the Green Line, it accounts for almost 45%.
Transportation Minister Yisrael Katz confirmed Monday that the state subsidizes bus tickets within West Bank settlements, causing them to be cheaper than tickets for rides within the Green Line.
IOA Editor: Transportation options and costs are an integral part of household location decisions. Therefore, public transportation subsidies to Jewish residents of illegal West Bank settlements, which reduce the cost of living in the West Bank compared to pre-1967 Israel, constitute yet another incentive for Israelis to become settlers.
Dr. Salem Ajluni: “Without annual external assistance to the tune of about $1 billion from the donor countries, this is not a sustainable situation. I’m not the only one saying this. So is the World Bank, the International Monetary Fund and [Palestinian Prime Minister] Salam Fayyad.”
Israel exploits the natural resources in the Jordan Valley and northern Dead Sea more than in the rest of the West Bank and prevents Palestinians from using most of the area’s land and water resources.
Yaakov Amidror, newly appointed head of National Security Council, worked with many Ofer-controlled companies; the Ofer brothers are uspected of illegal trade with Iran through subsidiaries registered abroad.
IOA Editor: While Israeli leaders continue to raise the Iranian Threat as a diversion from Israel’s enhanced colonial efforts, prominent Israeli security officials have been exposed in the upper management tier of a leading Israeli conglomerate suspected of illegally trading with Iran. Hypocrisy knows no bounds, and the same goes for propaganda.
“We are rapidly turning into South Africa. The economic hardship due to sanctions will be felt by every family in Israel,” said Idan Ofer at a gathering of some 80 businessmen. (HEBREW)
IOA Editor: A clear indication of how Israel’s ruling elite is deeply concerned about the potential economic impacts of BDS on Israel’s economy and on all Israelis. The meeting, which was organized in great secrecy, included Israeli billionaires and other leading business figures and its purpose was to support a diplomatic initiative designed to avert the impending deterioration of Israel’s global status.
Israeli Defense Ministry director general: Five countries interested in Iron Dome, Israel’s anti-missile system.
IOA Editor: There’s no business like arms business… The Occupation has been very good to Israel’s arms industry, serving as a live shooting range, practice killing fields for the high tech systems Israel is marketing to countries around the world. As Amira Hass wrote in 2009, Israel knows that peace just doesn’t pay. For more on the economic benefits of the Occupation, see the Shir Hever interview series The Political Economy of Israel’s Occupation.
While the Middle East is undergoing massive national changes, Israel received little attention in global media until last week’s bombing in Jerusalem. But Israel has seen its own share of national struggles in recent months leading to a major labor victory in March. Israel’s massive labor association, the Histadrut, succeeded in taking the worker’s fight to the government, forcing the Prime Minister to acquiesce to many of their demands, including raising the minimum wage.
It is possible to sum up Israel’s relations with its Palestinian citizens in one sentence: We are not only a minority that is discriminated against, we are a minority at risk. Over the past two years, the Knesset has brought forth dozens of laws designed to strengthen the Jewish character of the country at the expense of its democratic character. I fight for my rights in my homeland. Perhaps this is news to many of you, but I did not choose to live in the State of Israel; Israel has chosen to live among my people and I.
IOA Editor: Although originally written for International Women’s Day 2011, this commentary is directly related to the anti-Palestinian laws under consideration by the Israeli parliament, including the Nakba Law and the law enabling “admission committees” approval-requirement for would-be residents of towns of fewer than 400 families – both just passed by Israel’s parliament.
[Note also the summary of readers' reactions above article.]
A dramatic change is taking place in the form of Israeli control in the occupied Palestinian territories (oPt), whereby, in addition to soldiers and security officials, one begins to notice the growing presence of private security personnel. A number of Israeli security companies operate in the oPt, taking over some of the tasks that were traditionally executed by the army… The variety of operations of private security companies illustrates, perhaps most lucidly, that the Israeli occupation today is sustained not only by state military forces, but also by a multitude of commercial and economic forces, whose activities in the oPt are interwoven into the establishment of control itself.
MKs from the party heading the opposition recently voted in favor of two bills that should have been easy “nays”: giving mortgage help to would-be settlers and probing leftist organizations.
IOA Editor: Another, rather mundane, instance where so-called “Labor,” “Centrist” Israeli parties participate, alongside the “Extreme Right,” in the daily conduct of Israel’s colonization program: the century-long dispossession and repression of the Palestinian people, now with a new McCarthyist twist pointing to its own Jewish citizens. History doesn’t repeat itself, it simply continues.
Documents of the Second International session of the Russell Tribunal on Palestine that took place in London on November 20, 21 and 22 2010 on “Corporate Complicity in Israel’s Violations of International Human Rights Law and International Humanitarian Law”.
US forces have fired so many bullets in Iraq and Afghanistan – an estimated 250,000 for every insurgent killed – that American ammunition-makers cannot keep up with demand. As a result the US is having to import supplies from Israel.
Noam Chomsky speaks about the US economy, US mid-term elections, climate change, Haiti, Honduras, China and North Korea, and much more. This is Part II of a DemocracyNow interview with Amy Goodman held on 30 November 2010.
Noam Chomsky on the illusion of US democracy, liberal-conservative politics, the economy, unions and much more in a Paul Jay (the Real News Network) interview.
Israeli banks provide the financial infrastructure for all activities of companies, governmental agencies and individuals in the continuing occupation of Palestine and the Syrian Golan Heights. The services provided by the banks support and sustain these activities. Additionally, as this report shows, it is evident that the banks are well aware of the types and whereabouts of the activity that is being carried out with their financial assistance.
With the resumption of settlement construction in the West Bank yesterday, Israel’s powerful settler movement hopes that it has scuttled peace talks with the Palestinians, too. It would be misleading, however, to assume that the major obstacle to the success of talks is the right-wing political ideology the settler movement represents. Equally important are deeply entrenched economic interests shared across Israeli society.
Although colonists do have a powerful impact on Israeli politics, this is because the majority of the public allows them to… [T]he colonists actually serve a useful function for the Israeli government. Their seeming irrationality and apparent dangerous messianic politics are used to divert attention from the Israeli public’s reluctance to recognize Palestinian rights.
Harvard University has insisted that the sale of shares in Israeli companies is not driven by pro-Palestinian boycott and divestment campaign.
ALSO
Globes (Updated): Harvard denies divestment from Israel
Foreign Policy: Harvard not divesting from Israel
IOA Editor: Harvard’s sale of all its Israeli holdings will remain a bit of a mystery, at least for a while. The manner in which it was done – an entire country-portfolio, sold at once – during the second quarter of 2010 which, coincidentally or not, was also when the Berkeley BDS struggle culminated, suggests it may be more than just a matter of investment management.
If the Harvard Corporation wanted to avoid becoming embroiled in a BDS struggle connected to the Israeli Occupation – say, the next time Israel commits war crimes on sea or land – its best strategy would be to make a ‘business decision’ to pull out of Israel, quietly and without fanfare: not to make a principled, morally-based and publicly explained University policy decision, one that would be controversial and may cause some of Harvard’s donors to put their money elsewhere. And this is exactly what it did. Only time will tell.
In another blow to Israeli shares, the Harvard Management Company notified the US Securities and Exchange Commission (SEC) on Friday that it had sold all its holdings in Israeli companies during the second quarter of 2010. No reason for the sale was mentioned. The Harvard Management Company manages Harvard University’s endowment.
IOA Editor:The Harvard Management Company — a subsidiary of Harvard University charged with managing the university’s endowment, pension assets, working capital, and non-cash gifts — is best known for managing the university’s $26 billion endowment, the largest endowment in US higher education. Historically, the HMC has been the leading university investment management company, receiving a great deal of attention from all other university funds.
This is probably the first reported university endowment divestment from all Israeli holdings. Coming from Harvard, it sets a very important precedent: it is likely to be reviewed, scrutinized, and possibly followed, by other universities. Because Harvard, or HMC, has yet to make a public statement on the decision, one can only assume that it took place as a preventive measure, to avoid becoming the “next Berkeley.”
Israeli defense companies have scored one of the biggest deals in the industry’s history: They will be making about $4 billion worth of parts for the F-35 Joint Strike Fighter [manufactured by] Lockheed Martin… The discussions about Israel’s involvement were led by Defense Minister Ehud Barak.
IOA Editor: There’s no business like War Business, to misappropriate Irving Berlin.
A seven-part series on the political economy of the Israeli Occupation. Paul Jay of The Real News Network interviews Shir Hever, an Israeli economist and expert in the political economy of the Occupation whose forthcoming book is The Political Economy of Israel’s Occupation.
IOA Editor: This is a very important series. Among other things, it confirms Amira Hass’s assertions, made regularly, that Israel knows that peace just doesn’t pay.
A seven-part series on the political economy of the Israeli Occupation. Paul Jay of The Real News Network interviews Shir Hever, an Israeli economist and expert in the political economy of the Occupation whose forthcoming book is The Political Economy of Israel’s Occupation.
Part II: Israel Inflates National Security Concerns in Order to Invalidate Labor and Class Disputes
IOA Editor: This is a very important series, confirming Amira Hass’s assertions, made regularly, that Israel knows that peace just doesn’t pay.
A seven-part series on the political economy of the Israeli Occupation. Paul Jay of The Real News Network interviews Shir Hever, an Israeli economist and expert in the political economy of the Occupation whose forthcoming book is The Political Economy of Israel’s Occupation.
Part III: Israeli Elite Profited through Privatization of Public Assets – Workers Are Asked to Sacrifice
IOA Editor: This is a very important series, confirming Amira Hass’s assertions, made regularly, that Israel knows that peace just doesn’t pay.
A seven-part series on the political economy of the Israeli Occupation. Paul Jay of The Real News Network interviews Shir Hever, an Israeli economist and expert in the political economy of the Occupation whose forthcoming book is The Political Economy of Israel’s Occupation.
Part IV: Rational and Irrational Zionism – The Moderates and the Right
IOA Editor: This is a very important series, confirming Amira Hass’s assertions, made regularly, that Israel knows that peace just doesn’t pay.
A seven-part series on the political economy of the Israeli Occupation. Paul Jay of The Real News Network interviews Shir Hever, an Israeli economist and expert in the political economy of the Occupation whose forthcoming book is The Political Economy of Israel’s Occupation.
Part V: One State or Two, There Should Be Economic Justice – The Only State Now is Israel, It Has Obligations
IOA Editor: This is a very important series, confirming Amira Hass’s assertions, made regularly, that Israel knows that peace just doesn’t pay.
A seven-part series on the political economy of the Israeli Occupation. Paul Jay of The Real News Network interviews Shir Hever, an Israeli economist and expert in the political economy of the Occupation whose forthcoming book is The Political Economy of Israel’s Occupation.
Part VI: Israel’s Elite and the Far Right – Israel Sells Itself As ‘Frontline’ Against Islam
IOA Editor: This is a very important series, confirming Amira Hass’s assertions, made regularly, that Israel knows that peace just doesn’t pay.
A seven-part series on the political economy of the Israeli Occupation. Paul Jay of The Real News Network interviews Shir Hever, an Israeli economist and expert in the political economy of the Occupation whose forthcoming book is The Political Economy of Israel’s Occupation.
Part VII: The Boycott Israel Movement – The Reasons for Boycotting Israel
IOA Editor: This is a very important series, confirming Amira Hass’s assertions, made regularly, that Israel knows that peace just doesn’t pay.
It has become impossible to supervise the defense budget … It is utterly opaque. The system does everything to deflect true supervision… [T]he army is completely opaque to us. There is no civilian supervision over the IDF.
IOA Editor: This is an important story, confirming Amira Hass’s assertions, made regularly, about the power of the Israeli defense industry — from the professional classes of the IDF to the private sector arms manufacturers, dealer/exporters, “consultants,” and the rest — and the inherent financial and personal interest it has in continuing the Occupation. The Occupation is an essential part of the “business environment” of Israel’s largest and most influential economic sector. Civilian financial oversight of the IDF is only one aspect of a much bigger picture. See also:
Amira Hass: Israel knows that peace just doesn’t pay
Jonathan Cook: Remote-Controlled Killing
The Political Economy of Israel’s Occupation
[B]anking sanctions impact quickly upon financial elites who have the clout to pressure governments to concede political change. Trade sanctions, by contrast, impact hardest on the poor or lower-paid workers, who have virtually no political influence. SWIFT will, however, only take action against Israeli banks if ordered to do so by a Belgian court, and then only in very exceptional circumstances. Such very exceptional circumstances are now well-documented by the UN-commissioned Goldstone report.
Attorney Sari Bashi, director of the NGO Gisha that closely follows the restrictions on the freedom of movement of persons and goods, says that as far as is known, the “easing” has not included construction materials or raw materials. “Continuing the restrictions on the ability to produce will also limit the [Palestinians] buying power,” she said.
A number of local supermarket chains are taking a political stand: They have decided to boycott products manufactured in Turkey.
IOA Editor: Israel can boycott the world, but won’t tolerate the world boycotting it.
In response to a lawsuit by Gisha, an Israeli human rights group, the Israeli government explained the blockade as an exercise of the right of economic warfare.
How can we rely on those Palestinians? For 43 years, they have been building the settlers’ homes with the sweat of their brows, paving roads for them and building their fences, and then suddenly, out of the blue, a boycott? Is that the way for partners to behave? Is that how they pay us back after we educated them for so many years to be our hewers of wood and drawers of water?
The commotion over the PA’s economic campaign against the settlements indicates, more than anything else, how the colonialist mindset has been branded into Israeli consciousness. The protests over the threatened loss of the hewers of wood and drawers of water shows how hard it is to shake off the master-servant attitudes that have taken root over the last 43 years.
