Israel and Palestine

Who started the feud between the Hatfields and the McCoys? Who is to blame? In the case of the new nation of Israel in the land of Canaan (Palestine) we might go back to Adam and Eve or more recently to the Balfour Declaration in 1917 (see the brief history in my book “Palestine-Oslo Accords-My Travels to Jerusalem”) to see where the feuding began.

Who started it?

But let’s start this current, tragic round of fighting with the Israeli police attacks on demonstrators “rallying against the forced expulsions of Palestinian families from the occupied East Jerusalem neighbourhood of Sheikh Jarrah…. At least 90 Palestinians were wounded on Saturday [May 8] during an Israeli police crackdown on protesters outside the Old City of Jerusalem, while another 200 Palestinians were injured on Friday when Israeli forces stormed the Al-Aqsa Mosque.” Al-Aqsa Mosque, known as the Dome on the Rock in English, is Islam’s third most sacred site. Muslims believe that Muhammad ascended to heaven from this site.

 “Jerusalem court delays Palestinian Sheikh Jarrah eviction hearing”

Israel’s Supreme Court “is reviewing a judgment to evict Palestinian families from the Sheikh Jarrah neighbourhood of East Jerusalem. Their homes sit on land that was owned by Jews before Jordan occupied the eastern part of Jerusalem in 1948. Israeli law allows the heirs of the original owners to reclaim property in East Jerusalem. Yet Palestinians cannot claim their former homes in West Jerusalem (or anywhere else in Israel). No wonder Palestinian residents of the city are always ready to protest.

“The injustices elsewhere are worse. Palestinians in the wider West Bank, like those in Jerusalem, have watched Israel confiscate land and build settlements on occupied territory, which is illegal under international law. They must also deal with Israeli checkpoints and an onerous permit regime. In Gaza more than 2m Palestinians have been cut off from the world by Israeli and Egyptian blockades since 2007, when Hamas grabbed control.” The Economist: Only negotiations can bring lasting peace to Israel and Palestine”

That is the immediate background to the dozens of rockets launched by Hamas from Gaza starting on Monday (May 10): “Palestinian militants launched dozens of rockets from Gaza and Israel unleashed new air strikes against them early Tuesday, in an escalation triggered by soaring tensions in Jerusalem and days of clashes at an iconic mosque in the holy city.” “Israeli police Palestinians clash Jerusalem holy site”

At least 30 Palestinians, including 10 children, and three Israelis were killed as tensions in Jerusalem spread west toward the seacoast Tuesday. Israeli airstrikes flattened a multistory apartment building in Gaza and rockets fired from the Gaza Strip reached Tel Aviv in an unusually far-reaching barrage that sent residents of Israel’s largest city scrambling into bomb shelters.  “Israeli clashes Palestinians turn deadly Jerusalem tensions spread”

More concerning than the exchange of rockets between Gaza and Israel, is the sharp rise of violence between Arab Israelis in Israel and between Palestinians and Israelis throughout the West Bank.  A major problem is that there are no good guys on either side. “Most Israelis are comfortable with the ‘anti-solutionism’ of Benjamin Netanyahu, the prime minister, who shows little interest in pursuing a permanent settlement with the Palestinians….  Fatah, has not done much better in the West Bank. The party’s leader, Mahmoud Abbas, is in the 17th year of a four-year term as Palestine’s president. He seems concerned mainly with preserving his own power.”  The Economist: Only negotiations can bring lasting peace to Israel and Palestine”

Critically, the United States has failed to promote Palestinian rights, giving one-sided support to whatever Israel does.

Sadly, the winners, if we can call them that, of today’s tragic fighting are the status quo leaders (Netanyahu, Abbas, and Hamas), who have failed to address the central issues of the coexistence of Israelis and Palestinians in the land of Canaan. War, or the threat of it, are historically tested instruments for strengthening public support of existing leaders.  In a recent report on the situation in Israel, the Human Rights Watch pronounced Israel an Apartheid state.  “Israel report apartheid” The Jewish diaspora are increasingly speaking up against the policies of Israel. The United States could make a major contribution by conditioning its very large financial aid to Israel on its respecting the rights of Palestinians.  “A New U.S. Approach to Israel-Palestine”  

I shudder to think what might be happening by the time you read this.

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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6 Responses to Israel and Palestine

  1. Ron says:

    Excellent analysis, Warren.
    Ron

  2. Could give me your valuable insight? I am moved by your post!

  3. Chris says:

    Sadly, I find this sympathy for Palestinians bizarre. Israel has made many offers to the Palestinians, but they’ve never made an offer to Israel. There’s literally zero evidence that Palestinians would accept any 2 state solution; in fact, their leaders routinely deny that they would (making only ambiguous claims IN ENGLISH to the contrary; in Arabic, they assure their supporters that 2 states would be temporary). Why should we pretend that the Palestinians just haven’t received the right offer?

    Either you agree w/ the Palestinians that there should be only 1 Arab state, or you think the Palestinians are wrong because they’re the only side pushing a 1 state solution. Maybe you don’t like Israel’s offers, but at least they made offers!

  4. zpycer says:

    Hi Warren!
    Indeed.
    Typo, 1st Paragraph: Balfour
    Thanks
    😘♥️

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