Israeli and Palestinian Economic and Civil Policy: A New Strategy
Event Featuring:
Overview
Haggai Alon, a senior political advisor to Israeli Defense Minister Amir Peretz, presented a new Israeli Ministry of Defense (MoD) economic policy geared towards enabling the establishment of an economically and politically viable Palestinian state. As Amir Peretz’s advisor on the economic and social situation in the West Bank and Gaza, Mr. Alon suggested measures that would simultaneously improve Palestinians’ day-to-day lives and ensure Israel’s national security. According to Mr. Alon, such measures would include greater numbers of Palestinians employed in Israel, the gradual removal of check-points and road blocks, and greater Israeli-Palestinian cooperation on energy and environmental issues.
Event Summary
Mr. Alon opened his presentation with a quote from Abraham Lincoln: “the dogmas of the quiet past are inadequate to the stormy present.” This quote refers to Israel’s need to improve the living conditions of the Palestinian population as a prerequisite for resolving the conflict. According to Mr. Alon, alleviation of the socio-economic reality in which the Palestinian population has been living will eventually enable the establishment of an independent Palestinian state alongside Israel.
Mr. Alon acknowledged that the challenges facing the MoD in executing a new strategy are numerous. Obstacles include the current halt in peace talks between Israel and Palestine, the breakdown of official channels between the two governments, the functional deterioration of the Palestinian Authority (PA) due to the violent rivalry between Hamas and Fatah, and the severe economic regression of the Palestinian Territories, which have a 60-70% unemployment rate. He emphasized, however, that these challenges cannot persist for much longer given the political and strategic reality.
Mr. Alon outlined the MoD’s new socio-economic policy, which relies on three main strategic pillars. First is the idea that security and economic prosperity are inseparable and depend upon on one another. Second, Israeli-Palestinian functional interdependence needs to be maintained under extreme political conditions, i.e., any economic development promoted by the MoD could not revert even during political turmoil. The third pillar is the concept that short-term solutions create long-term damage. Therefore, financial aid from the international community cannot solve economic and societal issues in the long run. Mr. Alon added that since prosperity is a product of a development-oriented political environment, it is incumbent on the MoD to create an environment in the Palestinian territories that is suitable for developmental projects.
According to Mr. Alon, the underlying logic for building such an environment is the view that the Israeli and Palestinian societies are in fact “Siamese twins.” Consequently, disengagement is not feasible for these two populations. Economic links, especially in the agricultural and industrial sectors, are vital to both Israelis and Palestinians. Additional ties between the two societies exist in the energy and environmental fields. Issues such as Palestine’s dependence on Israel as its primary source of electricity, and the pressing, mutual environmental concerns of both Israelis and Palestinians as residents of a comparatively small land area between the Mediterranean and the Jordan River, cannot wait until a peace agreement is reached to be resolved. Moreover, Israel must gradually remove roadblocks inside the Palestinian Territories to allow for greater movement of people and goods; indeed, in order for the PA to achieve anything close to full employment, substantial numbers of Palestinians must have access to work inside Israel.
Mr. Alon asserted that the strengths of the MoD’s new strategy lie in realizing the interdependence of the Israeli and Palestinian societies, linking security with economic development, viewing the Palestinians as partners rather than enemies, and in incorporating pledges from international organizations. Regarding this last element of the strategy, he pointed to the development of several economic cooperation projects that are internationally funded. One such example is the Turkish-financed Ankara Project in which an industrial park which was previously located on the Israeli side of the Erez cross point in Gaza is being rebuilt on the Palestinian side. Mr. Alon estimated that the first factory will be built by October 2007 and might attract private investors to the area.
Mr. Alon concluded by stating that the greatest challenge facing the MoD was to combat endemic pessimism and restore hope in both Israelis and Palestinians that a solution to the conflict does exist. Reviving this hope will be a long process that depends first and foremost on rebuilding trust between the two groups via economic improvement, while also taking into account ongoing security concerns.
About this Event
Haggai Alon offered these remarks at the Carnegie Endowment for International Peace in Washington, DC on February 28, 2007.
Speaker Details
Recently appointed as the Israeli Minister of Defense’s advisor on the fabric of life of Palestinians, Mr. Alon's responsibilities in this capacity include issues related to the separation barrier and movement and access, including at Karni and other crossings. A veteran of the kibbutz movement and close confidant of Peretz, he played a large role in mobilizing the grassroots movement that brought Peretz to the Labor party chairmanship.
Attributions
This event summary was prepared by Shira Efron, a current Masters student at New York University, and current intern in the Publications Department at MEI. The summary was peer edited by Peter White, a recent graduate of Princeton University’s Near Eastern Studies Department, and current intern in the Publication’s Department at MEI.
