In his campaign to become prime minister, Benjamin Netanyahu explained that he believes “economic peace” should come before final agreements are signed between Israel and the Palestinians. He promoted a vision of economic growth in the Occupied Palestinian Territory (OPT) that would ostensibly help ease political tensions.
The idea that the Palestinians can be “bought” with prosperity and convinced to give up some of their rights has been part of the Israeli strategy already since conclusion of the 1967 Middle East war and the subsequent Israeli occupation.
This “economic peace,” however, has never been an attempt to improve the standard of living of Palestinians. First, it excludes the Gaza Strip, where Israel is actively promoting economic hardship. Second, not a single cent in Israeli public funds is invested in the Palestinian economy. Instead, Israel is counting on foreign investments to create employment in the OPT, and that partial relief in mechanisms that prevent economic development in the West Bank, such as the removal of some internal checkpoints and lifting some limitations on tourism, imports and exports, would be considered by the international community as Israeli “aid” to the Palestinians.
This partial relief was intended to create the appearance that Israel is willing to make compromises to the Palestinians, and also to fortify Palestinian Prime Mminister Salam Fayyad’s economic reform plan, a neoliberal plan that favors the private sector and is thus popular in the U.S, Europe and in Israel.
However, the “economic peace” idea was implemented very half-heartedly by Israel, and ran into numerous snags and obstacles when Israeli soldiers, settlers or officials found ways to sabotage the Palestinian economy.
The most recent setback for “economic peace” is the cessation of Israel’s “tolerance” of Rawabi, the new planned Palestinian city which has been the flagship infrastructure project of the Fayyad government.
According to the Israeli newspaper Yisrael Hayom, Israeli Minister of Environment Gilad Arden (Likud Party) argued that Rawabi does not meet Israeli environmental standards, and thus could potentially pollute the nearby Israeli illegal settlements.
Quickly convinced by Arden’s arguments, Israel’s Ministry of Defense announced that Israel will no longer “support” the Rawabi project.
It should be clarified – Israel never supported the project. It merely allowed it to proceed. Thus, the announcement of the Ministry of Defense can be understood as Israel declaring that it will now begin to sabotage the construction of Rawabi, just as it has been sabotaging economic projects in the occupied Palestinian territory since 1967.
Although it remains in Netanyahu’s interests to maintain the appearance that Israel supports the Rawabi project, in Israel’s political sphere the needs of the settlers always trump the diplomatic priorities of the government, and politicians can always score cheap points with their voters by showing that they are “tough on the Arabs.”
The construction of Rawabi will likely suffer, be delayed and costs will mount. Rawabi housing is sorely needed for the growing population of the West Bank, which is not allowed to build in Area C, which comprises about 60% of the West Bank. The city was intended for the upper-middle class of Palestinians, many of whom are supporters of Fayyad and his economic policies. Their upper-class neighborhood will be delayed once more, another reminded that economic development under occupation is outright impossible.
Sources:
- Tochfeld, Mati, 2010, “Assistance? Only if Its Environmentally Friendly, “, August 12th, 2010.
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