Israel Resource Review |
27th May, 2002 |
Contents:
Consequence of the War on the
Palestinian Arab Economy Today
Danny Rubenstein
Arab Affairs Correspondent, HaAretz
Judging
by the economic indicators, Yasir Arafat
and his colleagues in the Palestinian leadership
plainly did not plan in advance or even anticipate
the outbreak of the bloody confrontations that
came to be known as the al-Aqsa Intifada. The most
striking indicator is the billions of dollars
invested by the Palestinians in tourism
enterprises toward the year 2000--the year that
produced the Intifada
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In the ambitious "Bethlehem 2000" project alone
that climaxed with the visit of the Pope to
Bethlehem, more than two billion dollars were
invested. New and luxurious hotels were built in
the city of Jesus's birth, along with a modern bus
terminal and a conference center; infrastructure
for various services was installed and hospitality
and entertainment centers were opened. Similar
investments in tourist projects were made in
Jericho, Ramallah and even Gaza. A large portion
of the funding for these projects came from
external sources, from the countries that
contributed to the Palestinian Authority. But
large private and public investments were also
made by the Palestinians themselves.
Needless to say, the tourism industry is the most
sensitive of all to security events. In other
words, whoever invests such huge sums in tourism
not only is not planning violent events, but
indeed does not even imagine that something like a
war is about to break out. Thus we can state
unequivocally that the economy of the Palestinian
Authority in its short duration (1994-2000) was
built as a peace economy.
There are other aspects of the Palestinian economy
that offer an explanation of sorts for the
outbreak of the Intifada. A brief survey of the
development of the Palestinian economy should also
explain why so much attention is now being paid to
the corruption rampant within Palestinian
institutions.
The Oslo agreement of September 1993 was signed at
a time when a degree of separation was developing
between the Palestinian economy in the West Bank
and Gaza and the Israeli economy. Following the
Israeli occupation of the territories, and in the
course of over 20 years, near total integration
was instituted between the economies of the
Palestinian territories and Israel. Relations
between the small and relatively backward
Palestinian economy and Israel's large and modern
economy were completely asymmetrical.
It was Israel's minister of defense during the
1967 war, Moshe Dayan, who presided over the
process of integrating the two economies, based on
the free passage of goods between them. This
generated the near total dependency of the
Palestinian economy on that of Israel. Its main
feature was the employment in Israel of half the
Palestinian work force. Masses of laborers from
the Gazan refugee camps and the villages of Judea
and Samaria commuted daily to Israel to work in
construction, agriculture, services and industry.
This generated a process of rapid economic growth
in the West Bank and Gaza. In 1986, some 20 years
after the territories were occupied, Palestinian
per capita income had reached 22 percent of that
in Israel. In other words the Palestinians'
economic situation, relative to Israel's,
increased significantly during these years, and
their income began to close the gap with incomes
in Israel.
It was in the course of the crisis generated by
the Gulf War of early 1991 that closures were
first imposed on the territories. But the dramatic
change in the relationship between the economy of
the territories and that of Israel came about with
the Oslo Agreement and the establishment of
Palestinian autonomy. Palestinian laborers could
no longer enter Israel freely. Closure became a
permanent matter of principle. Instead of
integration between the two economies, rules of
economic separation were developed against a
backdrop that was both political and security-
motivated.
The establishment of Palestinian rule on the West
Bank and in Gaza was accompanied by great
expectations for economic growth. The ensuing
disappointment was equally great. Separation from
Israel through closure generated high rates of
Palestinian unemployment. Tens of thousands of
Palestinian workers stood beyond the fences and
the roadblocks and pondered how the peace process
had created a situation whereby guest workers from
Rumania, China and Thailand were taking their
places.
Following the Oslo Agreement, large sums of money
flowed to the Palestinian Authority to finance
national projects involving tourism,
communications industries, an airport at Rafah,
the first stages of constructing a seaport at
Gaza, and offshore gas production. But this could
not replace sources of employment in Israel. Only
the Palestinian ruling elite benefited
financially. Senior PA officials also received
benefits from Israel: free passage at roadblocks
and concessions for advancing commercial projects
and monopolies.
The Gazan and West Bank lower classes became
poorer and poorer. In 1998, four years after
Palestinian rule was established, per capita
income in the PA had dropped back to a low of 10
percent vis-à-vis that in Israel. The Palestinian
economy had been set back some 20 years.
Widespread instances of corruption and waste
within PA institutions also emerged. Even more
important was the impression that these phenomena
made on the masses of unemployed and poor. A
critical crisis of confidence developed between
them and the ruling elite. Bitterness and jealousy
generated endless stories and gossip about the
luxurious life of those enjoying the privileges of
rule at the expense of the suffering of the
masses. These socioeconomic circumstances played a
key role in the outbreak of the Intifada, and
continue to exercise decisive influence on the
widespread demands for reform and elimination of
corruption within the ruling institutions of the
Palestinian Authority.-
Danny Rubinstein is a member of the Editorial
Board of Haaretz. He specializes in Palestinian
issues, and lectures in the Department of Middle
East History at Ben Gurion University in the
Negev.
This essay was published for Published on 27/5/02 for
©bitterlemons.org,
a project financed by the European Union
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Saudi Sermon Declares War on
the Jews
Saudi Shaykh
Khayyat on Government TV calls on God "to deal with the
tyrannical Jews and their supporters" and bring about their defeat.
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#1 Riyadh Kingdom of Saudi Arabia TV1 in Arabic, official
television station of the Saudi Government, at 0928 GMT 17 May
2002 carries a live sermon from the holy mosque in Mecca.
Shaykh Usamah Ibn-Abdallah Khayyat delivers the sermon, which he begins by saying: "O Muslims, God has willed that the fire of the battle of destiny must not die down, but remain ablaze until He inherits the earth and all that is on it. For it is a battle of right against falsehood, guidance against deviation, and faith against infidelity. Indeed, it is the intifadah of goodness against evil in all shapes and colors, regardless of the different flags, many soldiers, big plots, and serious dangers. This battle is not a new development, but continuous chapters that go back in history, as related in the Holy Koran."
The imam refers to the battles fought by the prophets; namely, Abraham against idol-worshippers, Moses against the Pharaohs, Muhammad against the Qurayshi infidels of Mecca, and, in recent history, Salah-al-Din against the crusaders in Jerusalem. He then says: "The intifadah by Muslims in Muslim Palestine today is a link in the chain of the battle of destiny. It is a living example of the confrontation between right, which is the defense of religion, holy places, freedom, dignity, and honor, and falsehood, which is usurpation, aggression, and violation of sanctities and holy places."
Continuing, the imam says: "The battle of destiny is long and with continuous links. But, as in the past when God made right triumph over falsehood and gave victory to the faithful and humiliated the infidels, He would also give victory to Islam and make it raise the flag of right on Jerusalem and its vicinity and humiliate the criminal and tyrannical Jews so they would be a lesson for everyone."
The imam continues with the theme of "victory of right against falsehood" in the second part of his sermon, saying that the hope for victory should prompt Muslims "to stick to their rights" until God fulfills His promise. He concludes with a prayer to God to support Islam, unify Muslims and guide their steps on what is right, and give victory to the mujahidin in Palestine, Kashmir, and Chechnya. He also prays to God "to deal with the tyrannical Jews and their supporters" and bring about their defeat.
#2 Riyadh Kingdom of Saudi Arabia TV2 in Arabic, official television station of the Saudi Government, at 0931 17 May 2002 carries a live sermon from the holy mosque in Medina.
Shaykh Ali al-Hudhayfi delivers the sermon, which he devotes to repentance, calling on worshippers to repent to God and atone for their sins. He concludes with a prayer to God to strengthen Islam and Muslims, humble infidelity and infidels, and destroy the enemies of religion. He also prays for the unity of Muslims and the victory of "our brethren in Palestine."
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