Palestine

Starting in July 1995, I led IMF technical assistance teams to Israel and the West Bank and Gaza to help implement the provisions in the Oslo Accords to establish a monetary authority (Central Bank). These visits were at the invitation of the Israeli government and began and ended with briefing meetings with officials at the Bank of Israel in Jerusalem. I later led the IMF’s Financial Stability Assessment of Israel. The last of my eleven visits was in December 2013.

Following Israel’s occupation of the West Bank and Gaza Stripe (WBGS) in 1967, it allowed Palestinian skilled workers to fill labor needs in Israel. In the mid 1980s 40% of the Palestine workforces was employed in Israel. But prior to my first visit Israel closed that door and began importing workers from North Africa to fill the resulting shortage.

Looking back, in light of Israels on going attacks on Gaza, West Bank, Lebanon, Syria and Iran, (what a Financial Times article headlined as “Israel’s Spiraling Offensive” https://www.ft.com/content/cbe18019-752f-4770-be40-fe4b2dc5abd7?d )  I am surprised at what we closes our eyes to officially and unofficially.

We knew that Jewish settlements in the West Bank (and earlier in Gaza) on land stolen from Palestinians were in violation of the Fourth Geneva Convention, which prohibits the transfer of an occupying power’s civilian population into occupied territory. But in our Financial Stability Assessment of Israel, we ignored the financial implications for Israeli bank loans to setters on the grounds that the Israeli government would bail them out for any loses incurred. Looking back, I don’t really know where this judgement came from, but we understand that we were to ignore the Settlements.

During one of my missions we saw a new Jewish settlement being born before our eyes. A few dozen Jewish families had parked their trailers on Palestinian land. When Palestinians protested the theft of their land, the Settlers call on the Israeli Army for protection. Subsequently they would build permanent houses on this property.

On most of my missions to the WBGS we stayed in the famous American Colony Hotel in East Jerusalem (Laurence of Arabia had stayed there as had Peter O’Toole while later filming the movie). From there we had to drive each day to Ramallah, the headquarters of the Palestine Authority and future home of the Palestine Monetary Authority we were helping create.  Two features of our daily drive confronted us with how Israel was treating the Palestinians in the territories it occupied.

Israel was building separate Jewish only highways through the West Bank and to Gaza. Most Palestinians working in Ramallah commuted each day on their own roads.  There were separate entry check points for Palestinians and for Jews (and the international community such as us). We sailed through the Jewish entry, where our UN passports were quickly reviewed, while it took an hour or two for most Palestinians lined up at their check point to enter every day. I was amazed that Palestinian anger at such treatment was so subdued and seldom expressed.

Our several trips to Gaza and my meeting with Yasser Arafat and near abandonment in the desert are a fascinating story in their own right that you can read in my book:  “Palestine-Oslo Accords – My Travels to Jerusalem” Hearing the explosion of a terrorist attack on a Jerusalem bus while eating breakfast in the American Colony Hotel and subsequently fleeing to Jordan across the tiny Allenby Bridge over the Jordan River are also discussed in the same book.

Oslo: the Play

IMG_2150Yessar Arafat and Warren Coats in the PLO office in Gaza in February 1996.

Last night I saw the Round House Theater’s magnificent production of Oslo, the story of the secret meetings in Norway that led to the establishment of the Palestinian Authority.  It was a moving (heart wrenching) and balanced recounting of how these meetings achieved agreement between Israel and the Palestinian Liberation Organization on “land for peace” as it was called at the time after many years of failed official negotiations. I urge you to see it.

We heard the PLO negotiators lay out the Israeli theft of their homes and killings of their people and we heard the Israeli negotiators lay out the Palestinian attacks on Israelis and on the efforts of Jews to establish and secure an Israeli homeland.  For perspective, since the second intifada (between September 29, 2000 and January 31, 2018) at least 9,560 Palestinians have been killed by Israelis and 1,248 Israelis have been killed by Palestinians.  “The View from the West Bank”

The play focused on the unusual approach of these negotiations, which built on the development of trust and respect between the opposing negotiators and the agreement on achievable steps one step at a time. Between their long negotiating sessions in an isolated room near Oslo, they dinned, drank and bonded together. Unfortunately, the play fails to provide us with an overview of the resulting agreement, which applied the same step by step confidence building approach to the incremental establishment of a Palestinian government (the Palestinian Authority) and withdrawal of Israeli troops from the West Bank and Gaza. The PA was given governance authority for a limited number of functions in order—step by step—to build both institutional capacity and trust.

One of those functions was the establishment of the monetary authority (central bank). I led the IMF team that helped establish the Palestinian Monetary Authority and have many stories to tell of my many visits to Israel and the West Bank and Gaza in 1995-6 plus a number of visits in later years (most recently in December, 2011).

The PMA has developed into a well-run organization of which Palestinians (and those Israelis who see a successful Palestine government as important and necessary for their own security) can be proud.  It helped a great deal that the Bank of Israel and PMA developed good relations. Stanley Fischer was the governor of the BoI from 2005-13 and George Abed was governor of the PMA from 2005-7. They had both previously been colleagues at the IMF. “Jerusalem in August 2006”

It is with a broken heart that I watch Israel’s Prime Minister, Benjamin Netanyahu, with help from American President Donald Trump, increasingly abandon the two state solution of the Oslo Agreement for an apartheid single state regime in which “democratic” Jewish control is preserved by denying what would become the majority Palestinian residents their right to vote. “The Future of Israel and Palestine”