Fixing Palestine

In 1995 and 6 I led IMF technical assistance teams to Israel to establish the Palestine Monetary Authority as called for by the Oslo Accord. We were excited by the prospects of contributing to peace between the Arab and Jewish populations who had occupied the area for millennia (as well as new arrivals). We spoke, as did many others, of the Oslo Peace Process establishing a two-state solution to the struggles between the Palestinians and Jews since the establishment of Israel in 1948. In fact, we should have referred to the Oslo Accords as establishing only a step, a rather small one at that, toward a two-state solution—two independent states following Israel’s occupation of the West Bank and Gaza Strip in 1967.

I wrote about these experiences in “Palestine-The Oslo Accords Before and After-My Travels to Jerusalem” Our work was greatly facilitated by the fact that the governors of the Bank of Israel, Stan Fischer, and of the newly created Palestine Monetary Authority, George Abed, had been IMF colleagues. I asked each if they would write the foreword to my book. Stan declined saying that it was too sensitive a topic and George declined saying that my book was unfair to the Palestinians.

I have just finished reading a new account of the efforts to find peace in the area by two insiders with much wider exposure than I had had:  “Tomorrow is Yesterday-Life, Death and the Pursuit of peace in Israel/Palestine” by  Hussein Agha and Robert Malley. And I concluded that George Aben had been right about my account.

The two authors had been intimately involved in the many efforts to find agreement between the relevant parties. Drawing on their experience advising the Palestinian leadership (Arafat and Abbas) and US presidents (Clinton, Obama, and Biden) and their participation in secret talks over decades, Agha and Malley expose the weaknesses of those efforts and point to the potential of a very different approach. “They stress that the two-state solution became a global goal only when it was no longer viable; that U.S. officials preferred technical schemes to a frank reckoning with the past; that Hamas’s onslaught [on Oct 7, 2023] and Israel’s war of destruction were not historical exceptions but historical reenactments; and that the gaps separating Israelis and Palestinians have less to do with territorial allocation than with history and emotions.” From Amazon Books website.

Robert Malley was the United State Special Envoy for Iran in 2021-23 and as Special Assistant to President Clinton from 1998 to 2001, he was a member of the U.S. peace team and helped organize the 2000 Camp David Summit. Hussein Agha, a Lebanese, is a senior associate of Oxford University’s St. Antony’s College was a senior associate fellow at Chatham House.

Malley and Agha stress the diversity of players in the search for peace—ultra orthodox to nonreligious Jews—Palestinian groups that spent more energy fighting one another than fighting Jews. Selecting Israeli prime minister Ehud Barak and Palestinian Authority chairman Yasser Arafat for US lead negotiations at the Camp David summit left out most groups and many relevant issues. The authors end with the somewhat encouraging call to return to the beginning (1948 and before) and seating all Jewish and Palestinian groups at the table to take on the fundamental issues of history head on if there is any chance of finding the compromises needed to live together in peace with one, two, or more states as options.  https://wcoats.blog/2024/01/19/one-state-solution-for-palestine-israel/   Their narrative is a very enlightening account. 

My Travels to Jerusalem

Palestine: The Oslo Accords before and after, My travels to Jerusalem By Warren L Coats (2021) Kindle and paperback versions available at: Oslo Accords: Before and After

An intimate account of the establishment of the Palestine Monetary Authority and related adventures by one of the International Monetary Fund’s post-conflict, transition economy monetary experts. From being stranded in the desert without a cell phone, to hearing the sound at breakfast of a suicide bomber, to meeting with Yasser Arafat, and Stanley Fischer of the Bank of Israel, the author shares his adventures in the land of Canaan over a sixteen year period.

The establishment of the State of Israel in 1948 in Israel’s ancestral homeland required dealing with Palestine’s existing residents. In the Six-Day War in 1967, Israel’s occupation of the territories given to the Palestinians when the United Nations first recognized the State of Israel (the West Bank and Gaza Strip) increased pressure to resolve that issue. The Oslo Accords offered a path to its resolution, based on an agreement between Yasser Arafat, representing the Palestinian people, and the government of Israel, to swap land for peace (the return of Palestinian lands in exchange for Palestinian recognition of the State of Israel and its right to exist in peace).

One of the elements of the Oslo Accords was the establishment of a central bank in the Occupied Territories. Between 1995 and 2011 Warren Coats lead or participated in the missions of the International Monetary Fund to assist the Palestinian Authority in establishing and developing the capacities of the Palestine Monetary Authority. This book recounts the highlights of his visits, which included meetings with Arafat, as well as Bank of Israel officials.

Previous Books

One Currency for Bosnia: Creating the Central Bank of Bosnia and Herzegovina by Warren Coats (2007)   Hard cover: One Currency for Bosnia

FSU: Building Market Economy Monetary Systems–My Travels in the Former Soviet Union By Warren L Coats (2020)  Kindle and paperback versions available at: FSU-Building-Economy-Monetary-Systems

Afghanistan: Rebuilding the Central Bank after 9/11 — My Travels to Kabul By Warren Coats (2020)  Kindle and paperback versions available at:  “Afghanistan-Rebuilding the Central Bank after 9/11”

Iraq: An American Tragedy, My Travels to Baghdad By Warren Coats (2020) Kindle and paperback versions available at: Iraq-American-Tragedy-My-Travels-Baghdad

Zimbabwe: Challenges and Policy Options after Hyperinflation by Warren L. Coats (Author), Geneviève Verdier (Author)  Format: Kindle Edition Zimbabwe-Challenges and Policy Options after Hyperinflation-ebook

Money and Monetary Policy in Less Developed Countries: A Survey of Issues and Evidence by Warren L. Coats (Author, Editor), Deena R. Khatkhate (Author, Editor)  Format: Kindle Edition Money and Monetary Policy in LDCs-ebook