Israel Matzav

As Obama obsesses with 'settlements' the 'West Bank' is flourishing

Israeli ambassador to the United States Michael Oren has a column in Friday's Wall Street Journal that shows how the 'Palestinian' economy in Judea and Samaria is flourishing while the Obama administration obsesses with 'settlements' and misses the boat.

Imagine an annual economic growth rate of 7%, declining unemployment, a thriving tourism industry, and a 24% hike in the average daily wage. Where in today's gloomy global market could one find such gleaming forecasts? Singapore? Brazil? Guess again. The West Bank.

According to the International Monetary Fund (IMF), the West Bank economy is flourishing. Devastated by the violence and corruption fomented by its former leadership, the West Bank has rebounded and today represents a most promising success story. Among the improvements of the last year cited by the IMF and other financial observers are an 18% increase in the local stock exchange, a 94% growth of tourism to Bethlehem—generating 6,000 new jobs—and an 82% rise in trade with Israel.

Since 2008, more than 2,000 new companies have been registered with the Palestinian Authority in the West Bank. Where heavy fighting once raged, there are now state-of-the-art shopping malls.

Much of this revival is due to Palestinian initiative and to the responsible fiscal policies of West Bank leaders—such as Prime Minister Salaam Fayyad—many of whom are American-educated. But few of these improvements could have happened without a vastly improved security environment.

Oren goes on to describe the factors that have led to the economic boom in the 'West Bank:' The Dayton forces, Israel removing checkpoints it felt were no longer needed and cooperation between Israel and the 'Palestinians.' It sounds like Shimon Peres' vision of Paradise.

Shimon Peres, now Israel's President and the architect of the 'Oslo accords,' argued that if the 'Palestinians' had something to lose economically, they would give up terrorism. It was an argument that many on the Right in Israel dismissed. And we were and still are correct.

There's a storm cloud looming on the 'Palestinian' horizon and it's one that's not even mentioned by Oren. Oren notes that western-educated Salam Fayyad is responsible for much of the success of the 'Palestinian' economy due to his adoption of no-nonsense, honest fiscal policies. One of the upshots of this week's Fatah conference and the apparent replacement (and I say 'apparent' because there have been accusations of fraud that threaten to cause Fatah to break apart) of much of Fatah's central committee with members of the 'next generation' is that Fayyad, the western-educated technocrat who is not a member of Fatah may no longer be welcome as Prime Minister.

A senior Fatah official speaking on condition of anonymity said it would be "natural to review Fatah's position now that we have a new leadership (with) the right to reconsider its representatives in the government."

Many in Fatah have been irked by Abbas's reliance on Fayyad, a former International Monetary Fund official, and complain budget cuts have hit the party and its loyalists.

Fayyad's supporters, including Western aid donors, say the premier has curbed corruption and waste that Fatah's critics say were the hallmarks of its earlier rule.

A source close to the prime minister said: "The government should enjoy the official support of the biggest party.

"This means that the government may be changed, reshuffled or stay. But at the end of the day, the government should be publicly backed by the ruling party, not only by (Abbas)."

A second diplomatic source said rumors of Fayyad's likely replacement were merely "background chatter" prompted by shifting political fortunes at the congress, and predicted no change of prime minister.

Fayyad had tendered his resignation in March, apparently partly in frustration at opposition from Fatah. But Abbas refused and confirmed him in the premiership in May, heading a cabinet with more Fatah representation. There were simply no credible alternatives to Fayyad, the second diplomat said.

...

Fayyad has no significant power base of his own but is popular for his grass-roots engagement. Hamas would welcome his removal at any time. They consider him an obstacle to dialogue because of his security crackdown on Hamas in the West Bank.

If Fatah is to reconcile with Hamas, Fayyad will lose his job. And if Fatah does not reconcile with Hamas, he may lose it anyway.

Without an economy to speak of, it is doubtful that a 'Palestinian state' can ever thrive within any borders. But the 'Palestinian leadership' is not interested in a 'Palestinian state.' They are interested in destroying the Jewish state.

posted by Carl in Jerusalem @ 5:44 PM