Workshop: A viable Palestinian State: Economic Development and Good Governance

Report by: Koriander (C.P) van den Ende Jan Moerings, both students at the University of Amsterdam

Led by:

Speakers:

When looking at a viable Palestinian State we have to look at how we define viability. In order to grasp the term "viable" you can look at it from a few aspects that are important to determine what is part of this viability:

1. Geographic factors
2. Economic factors
3. Governmental factors

Ad 1: The question on boundaries. Should for instance the Westbank be linked with Gaza or not. And if so, how? Will the West Bank be split up in Bantustans. What about the settlements?

Ad 2: Resources, Who is in control of the land, water, infrastructure, labor and capital mobility?

Ad 3:What is Good Governance. Political reforms caused by U.S and E.U pressure? What in this is the vision of the Palestinians? Democracy, transparancy, security forces?

And how to think about these above three mentioned considering nearby, mid- term and long- term effects?

Fact is that closures have been devastating for the Palestinian economical situation. Unfortunately a fact is that even harsher closures have already been implemented. Besides this the operation Defensive Shield has had devastating effects according to a World Bank Report.

S. Bichler states that good governace has been studied and examined since the 70's. The plan was to assume a independent Palestinian State that is sovereign.

Several things have occurred during these times. The world order has shifted. In the case of Israel this has meant that first flowing from a weapon- petro dollar coalition it shifted to a Merger- techno dollar alliance with the emergence of High Tech. Right now the shift is back to the weapon- petro dollar coalition. He states that the task is very clear: There can not be good governance if there is not an independent economy. Therefore it is only useful to put full force on Israel with whatever pressure methods because first there has to be an independent sovereign and autonomous Palestinian State to be able to look at economical development and good governance. He states that complex situations ask for complex and hard measures. Ending the association agreement could in his eyes be one of these things.

Mouin was invited on very short notice because of the absence of Mr. Hadi. He excused himself for maybe being a bit unprepared. We all thank him for his contribution.

He states that he sees three future scenario's:

• The situation getting worse
• The situation getting better
• The situation remaining in the status quo

He points out that when you look at the effects of closures that this particularly shows the linkage between politics and economics. Facts are that Israel has followed a policy of prolonged multiple fragmentation of the Palestinian Territories, prolonged immobilization of goods and persons.

All Palestinian Economic Developments or initiated efforts suffer from this.

The situation is not likely to improve if there is significant political changes on the side of the Israeli's. The Palestinians are too weak to create there own economy. Neither there is room for honest negotiations since the Palestinians are too weak, the Israeli's too strong and the U.S biased in favor of Israel and as a result a strategic party in the whole.

The Arab world on her part is too fragmented to take any real steps. Therefore the E.U should not consider its role to be marginal.

Though they have to address the region with sensitivity towards the region and history, they are the only party that can really undertake action. Since they are the number 1 trading partner of Israel and the second largest donor country for the Palestinian Territories there is certainly a role for the E.U in the process.

The E.U now is mainly subsidizing and financing the Occupation. Next to this they are helping the status quo to persist since they trade products that formally belong to Palestinians but are beneficial only to the Israeli economy.

This is what he calls Bad Governance. Besides this Europe has become what people also call the laughing stock of the Middle East since Mr. Solana was not allowed to talk to Yassir Arafat on his visit to the region and Europe didn't respond to this.

Furthermore there is consistent E.U criticism on U.S policy that according to him is correct, but misplaced. Misplaced since the E.U has the power to do something but doesn't do it. The European Union should look for its own objectives in the region and take a stand. The E.U has the power to be decisive in a lot of matters. If only it would use this prerogative.

The basic conclusion coming forth from the continuing debates was the fact that a viable Palestinian state will only be reachable is there is an independent economy, sovereignty and autonomy. Mr. Bichler calls for hard measures and pressure on Israel. Mr. Rabbani hopes the E.U will not underestimate the role that they can play in the whole process. Furthermore the role of the E.U should be one more of action instead of just sticks and carrots. Fact is that Israel is really depending on the E.U economically. This should open doors for changes and interventions.

Sanctions could be one of these possibilities, although taking in account that sanctions sometimes don't work if people are behind the politics. However countries are vulnerable when it comes to economics.