The Future of Israel and Palestine

At an otherwise friendly dinner conversation at the home of Israeli friends, our host explained that Israel having taken over the West Bank and Gaza Strip (WBGS) in the 6 day war in 1967, i.e. having won the war fair and square, so to speak, the Palestinians and the rest of the world should accept that reality and move on. He was articulating the one state solution to the Israeli-Palestinian problem. The WBGS now belongs to and is part of Israel (though Israel did withdraw later from and gave up Gaza).

The Zionist movement’s goal of establishing a Jewish homeland, a Jewish nation, seemed fulfilled with the U.N.’s recognition of the new state of Israel in 1048. The commitment of its Jewish residents to building a democratic state required achieving and maintaining a Jewish majority in the population. Absorbing the West Bank into Israel presents some obvious challenges. If you are not familiar with the history of Israel, I urge you to read my summary of it: “View from the West Bank–A History of the Conflict”

One state for Israel and the West Bank would have a majority of Palestinians. The Jews around the world willing to move to Israel (the earlier strategy for obtaining a Jewish majority) have pretty much already done so and birth rates among the Palestinians are higher than among the Jews. Thus a consolidated, democratic, and Jewish state would require second-class citizenship for its Palestinian residence. A British journalist living in Nazareth, Israel explains this in more detail: “With-more-palestinians-than-jews-israel-waging-war-of-attrition”

Former President Jimmy Carter described this potential outcome in his 2006 book, “Palestine: Peace Not Apartheid,” where he wrote: “The bottom line is this: Peace will come to Israel and the Middle East only when the Israeli government is willing to comply with international law, with the Roadmap for Peace, with official American policy, with the wishes of a majority of its own citizens — and honor its own previous commitments — by accepting its legal borders.” This reality is recognized by many Israeli and even endorsed by some: “Israeli minister-endorses-apartheid.”

An apartheid regime for Israel would be an affront to liberal democratic values not easily swallowed by the Jewish diaspora. In fact, it would not be acceptable at all. That argues for continued effort to agree on a two state solution. In the following article Ronald Lauder, President of the World Jewish Congress, makes the case for the two state solution that the U.S. and U.N have worked for until now (or perhaps until last year) as the only morally and practically acceptable solution to this problem: “Israel’s Self-Inflicted Wounds”.

What we are seeing now, however, is something much uglier. The third option to two states, or one apartheid state, is one state that has ethnically cleansed the unwanted Palestinians in order to preserve Jewish control in a democratic state. The increasingly corrupt regime of Bibi Netanyahu seems to be moving in this direction and uncritical U.S. support of whatever his government does is putting the U.S. at odds with the rest of the world. For a similar review, see: “The-strange-catharsis-of-hopelessness-in-Israel”

U.S. tacit support of continued construction of illegal Israeli settlements on Palestinian land was resoundingly rejected by the U.N. When President Trump moved the U.S. Embassy to Jerusalem “The United Nations General Assembly voted… 128-9, with 35 abstentions, on a non-binding resolution condemning President Trump’s new policy recognizing Jerusalem as the capital of Israel…. U.S. Ambassador to the United Nations Nikki Haley told an emergency meeting of the General Assembly [that] ‘the United States will remember this day in which it was singled out for attack in the General Assembly for the very right of exercising our right as a sovereign nation.’” This is the language of a bully, not a world leader, and I was appalled and embarrassed for my country. “UN-votes-to-reject-US-decision-on-Jerusalem-despite-threats”

More worrying are increasing signs that Netanyahu’s government is indeed pursuing the ethnic cleansing option. In addition to stealing Palestinian land in the West Bank for Israeli expansion, Israel has increasingly isolated and stifled the Palestinian economy. “Israel-Jewish-nation-state-bill”

Israel has occupied the West Bank for fifty years. Some of its treatment of its wards would be seen as human rights violations if committed by any other country. “Alabama-Israel-apartheid.” Recent Israeli laws are escalating such abusive treatment, allowing “the minister of interior to revoke the residency rights of any Palestinian in Jerusalem on grounds of a “breach of loyalty” to Israel.” “Israel-passes-law-strip-residency-Jerusalem’s-Palestinians”

Last December you may have watched the video of 17 year old Ahed Tamimi attacking two Israeli soldiers who had just shot her 15-year-old cousin Mohammed Tamimi in the head at close range with a rubber-coated steel bullet. https://www.youtube.com/watch?v=8YFen2KdqbU. The Israeli soldiers get points for staying cool. Ahed is now servicing eight months in prison after agreeing to a plea bargain. More recently (March 30, 2018) Israeli soldiers shot and killed 16 Palestinians on the Gaza Israeli border and wounded hundreds. http://www.bbc.com/news/world-middle-east-43593594 “Both UN Secretary-General Antonio Guterres and EU diplomatic chief Federica Mogherini have called for an independent investigation. On Saturday, the United States blocked a draft UN Security Council statement urging restraint and calling for an investigation of the violence.” Such blind obedience to Netanyahu’s government does not service the U.S. or Israel well (not to mention the Palestinians). Israel rejected the call. “Israel-rejects-calls-independent-probe-Gaza-violence.”

To ours and Israel’s shame, ethnic cleansing seems to be winning out. During my many visits to Israel and the West Bank and Gaza I marveled at the open debate among Israelis of these issues and praised their free press. I wrote the following from Jerusalem 12 years ago and again praised the importance of a free journalism. “Jerusalem-in-august-2006″. I am now waiting for today’s tweet attacks from Mr. Fake News, and wondering if we are in danger of letting it slip away.

As a bonus, I recommend the following video discussion of these issues at the New America: “Ultimate-deal-or-ultimate-demise”

 

 

 

About wcoats

I specialize in advising central banks on monetary policy and the development of the capacity to formulate and implement monetary policy.  I joined the International Monetary Fund in 1975 from which I retired in 2003 as Assistant Director of the Monetary and Financial Systems Department. While at the IMF I led or participated in missions to the central banks of over twenty countries (including Afghanistan, Bosnia, Croatia, Egypt, Iraq, Israel, Kazakhstan, Kenya, Kosovo, Kyrgystan, Moldova, Serbia, Turkey, West Bank and Gaza Strip, and Zimbabwe) and was seconded as a visiting economist to the Board of Governors of the Federal Reserve System (1979-80), and to the World Bank's World Development Report team in 1989.  After retirement from the IMF I was a member of the Board of the Cayman Islands Monetary Authority from 2003-10 and of the editorial board of the Cayman Financial Review from 2010-2017.  Prior to joining the IMF I was Assistant Prof of Economics at UVa from 1970-75.  I am currently a fellow of Johns Hopkins Krieger School of Arts and Sciences, Institute for Applied Economics, Global Health, and the Study of Business Enterprise.  In March 2019 Central Banking Journal awarded me for my “Outstanding Contribution for Capacity Building.”  My most recent book is One Currency for Bosnia: Creating the Central Bank of Bosnia and Herzegovina. I have a BA in Economics from the UC Berkeley and a PhD in Economics from the University of Chicago. My dissertation committee was chaired by Milton Friedman and included Robert J. Gordon.
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