Afternoon Tea in Jerusalem Blog

In addition to my work as a business coach, one of my interests is blogging about life in Israel. This is a country full of contrasts – over eight million citizens living in an area the size of Wales. You can see snow and the lowest place on the globe in the same day. Although surrounded by geopolitical extremes, Israel has achieved a decade of high economic growth. My work brings me in contact with an array of new companies, exciting technologies and dynamic characters. Sitting back with a relaxing cup of strong tea (with milk), you realise just how much there is to appreciate in the Holyland. Large or small operations, private sector or non profit, my clients provide experiences from which others can learn and benefit.

For decades, Palestinian leaders have been trying to convince the world that heir economy is bankrupt, and that can only be the fault of Israel. In a year of Brexit, a bizarre American election campaign and continued global retrenchment, has that rhetoric changed. And anyway, who is still listening?

Some facts: In July of this year, an IMF team warned that overseas donations, a critical part of the numbers for the exchequer in Ramallah, were slowing down again. Israel had held up its contributions, due to the Palestinian Authority’s (PA) massive state to Jerusalem. Unemployment is 27% in the West bank and much higher in Gaza. While their is growth of over 3%, this does not cover the growing population.

The World Bank status report, released this week, also makes for depressing reading. The fiscal system is under pressure. And because there is such a disproportionately large public sector, there is a looming threat of a pensions crisis.

The problem for the Palestinians is that the world financial crisis, which continues to fizzle along, ensures that there is no longer so much spare cash available for international aid. In parallel, the competing crisis of refugees from Syria and elsewhere in the Middle East has demanded that large sums be set aside for them.

Add into that equation the continuous flow of stories and rumours about corruption and mismanagement within the Palestinian leadership, and what do you end up with? Less funding!

Even the notoriously conservative thinking British government’s Department for International Development, which has handed out hundreds of millions in aid over the years, observed: “…we will work with organisations in the right way to make sure that we are delivering the right outcomes that meet our Government priorities—both peace and stability, as well as humanitarian causes.” That is Oliverian Newspeak for ‘we are reviewing the situation…you have all been warned’.

One positive factor did emerge this week. Israel and the PA finally settled their argument over how the Palestinians owe Israelis for use of their electricity and other amenities. A time schedule was established to pay off the debt, while Israel wrote off a billion shekels in back payments. Such a deal also answered the critiques, who have repeatedly claimed over the years that Israel has cut off power to the Gaza Strip.

However, the future does not look too bright. 81-year old President Abbas is clearly losing control over the West Bank. That is probably the true reason why elections there have been postponed. In addition, it is becoming horrendously apparent that Abbas will block any challenge to replace him, especially if that means the financial empires of his two sons are threatened. The Falcon Enterprise is evidently worth hundreds of millions of dollars.

Whatever the true size of the Abbas family’ private fortune (and that of Hamas leaders), as the Autumn of 2016 approaches, the rhetoric of hatred directed against Israel continues unabated. Many Palestinians continue to live in poverty. And their representatives continue to prosper.

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