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

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”

 

American Exceptionalism—where has it gone?

Americans are among the most generous people in the world.  World Giving Index – published by the Charities Aid foundation – averages the percent of the population giving money to charities, the percent who have volunteered time for an organization in the past month, and the percent who have helped a stranger in the past month. Americans are sixth, tied with Switzerland with a score of 55%. Australia and New Zealand are first and second with 57% followed by Ireland and Canada with 56%. Germany is 19th with 44% and France is 93rd with a score of 27%.

I have always been proud that visitors to the United States have generally found Americans to be friendly, helpful, and good-hearted. I realize that this is a bit hard to imagine these days with the negativism thrown from the right and the left at each other, but we still manage the occasional smile in the grocery store as we wait at the checkout line. However, views of America abroad have been declining for some years and have plummeted this year. http://www.pewglobal.org/2017/06/26/u-s-image-suffers-as-publics-around-world-question-trumps-leadership/

The reasons for this decline that leap out to me reflect the propensity of our government to throw its weight around. We have been at war almost continuously since 9/11 (Afghanistan, Iraq, Somalia, Syria, Libya, Yemen, Nigeria, and who knows where else). The U.S. has 662 overseas bases in 38 foreign countries and military personnel in 130 countries. Most American soldiers are fine young men but no one likes foreign soldiers on their streets for very long, even went they are well behaved most of the time.

I was discussing with a Pakistani friend the “special” qualities of the American government and American people that make us exceptional https://works.bepress.com/warren_coats/35/. He suggested that a growing number of people around the world see the United States as exceptional in the sense that it doesn’t think it needs to follow the rules it sets out for everyone else. We are seen as bullies. Ouch.

The most recent and embarrassing example of this was President Trump’s announcement that the United States recognized Jerusalem as the capital of Israel and would move the U.S. Embassy there. As background, on May 14, 1948 the British agreed when Israel declared its independence from the British mandate that ruled Palestine. The State of Israel was immediately recognized by the United States. After several rejections by the UN Security Council, Israel’s UN membership application was accepted by the General Assembly on May 11, 1949 in Resolution 273, which, among other things, defined the new country’s boundaries. Between June 5 to 10, 1967 Israel attacked and captured surrounding territories in Egypt, Jordan and Syria in what became known as the Six-Day War. Except the Gaza Strip and the West Bank most of the captured territory was returned as part of a peace agreement. Israel ended its occupation of the Gaza Strip in August 2005.

The termination of Israel’s “temporary” occupation of the West Bank, including East Jerusalem remains the subject of the Israeli-Palestinian peace negotiations. “Under the 1947 UN Partition Plan to divide historical Palestine between Jewish and Arab states, Jerusalem was granted special status and was meant to be placed under international sovereignty and control. The special status was based on Jerusalem’s religious importance to the three Abrahamic religions.”  “Jerusalem-capital-Israel”

In general, the international community rejects the use of brute force to change borders. Russia’s annexation of Crimea into Russia (though it was previously part of Russia before Khrushchev gave it to Ukraine in 1954) violated this understanding.

President Trump’s announcement about the status of Jerusalem violates standing U.S. and international policy. It was almost universally condemned. The US vetoed a Security Council condemnation of Trump’s action but the General Assembly overwhelmingly (128 to 9, with 35 abstentions) passed a resolution declaring that, “any decisions and actions which purport to have altered the character, status or demographic composition of the Holy City of Jerusalem have no legal effect, are null and void and must be rescinded.” White-House-vows-to-stand-firm-on-trumps-recognition-of-jerusalem-as-israels-capital/2017/12/23/

The General Assembly vote used a rarely exorcised power as explained by Paul Pillar. “Among the principal takeaways from the General Assembly’s action is that an international sense of justice and fairness matters.  Many states reject the notion that might makes right, which is how the Israeli government has treated its relations with the Palestinians, and how the Trump administration approached its lobbying on this resolution.” “Uniting-against-trumps-policies-for-peace”

When the UN voted Thursday (Dec 22) to condemn this action “Only seven countries—Guatemala, Honduras, Togo, Nauru, Palau, Micronesia and the Marshall Islands—were willing to stand with Uncle Sam and Israel and vote against the resolution.” “Next-year-in-Jerusalem”

Aside from keeping the favor Israeli Prime Minister “Bibi” Netanyahu and some wealthy American Jewish donors, there is no upside to this step to be found. The peace talks, such as they were, have been damaged. Even the “Permanent Observer Mission of the Holy See to the United Nations called for maintaining of the status quo of Jerusalem.” In its letter to the President of the General Assembly it stated that: “The unique identity of Jerusalem, which is of universal interest, consists in its particular nature as a Holy City, most sacred to the three monotheistic religions and a symbol for millions of believers worldwide who consider it their “spiritual capital”. Its significance goes beyond the question of borders and this reality should be considered a priority in every negotiation for a political solution.” “Holy-See-supports-Jerusalem’s-historical-status-quo”

Israelis themselves are deeply divided on this issue. The continued and unresolved occupation of the West Bank by Israel has and continues to provoke terrible behavior by both sides. Uri Avnery, an Israeli freedom fighter in his youth, decries acts by his country against occupied Palestinians in passionate terms (email me if you are interested in his email) as does Phillip Weiss: Ending-crisis-Zionism/

But American bullying did not stop there. Nikki Haley, U.S. Ambassador to the UN, delivered a disgusting and threat-filled speech condemning the U.S. rebuke. “The crude tactics included Nikki Haley’s rhetoric about ‘taking names’ and Donald Trump’s bombast about cutting off U.S. aid.  Among the Arab states that supported the resolution were the two states—Egypt and Jordan—that receive more U.S. aid than anyone other than Israel.  The very crudeness of the tactics, and the offense taken to bullying, probably made the tactics counterproductive.” (see Pillar article above).

Good hearted and freedom loving Americans are increasingly represented by governments that push our views and interests on the rest of the world. The rest of the world’s resistance is building. This does not serve our economic or security interests. How did the “essential country”—the “exceptional country”—become a big bully? In recent weeks we have also been asking ourselves how prominent leaders in the media, industry, and Congress have become sexual bullies. It seems that power corrupts. Eternal vigilance is still needed.