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.

This week, Palestinians are being encouraged to demonstrate, and in some cases, violently. Today, America will open its embassy in Jerusalem. Tomorrow will see the culmination of six weeks of riots on the border with Gaza, which ties in with Naqba Day.

One of the motivating factors behind these tensions is the poverty in the Palestinian territories. And it is generally accepted that Israel is to blame for all the woes. Israel is rich. Israel occupies. Ergo, Palestinians are poor.

The fact that the leaders of Fatah, the main faction of the Palestinian Authority (PA), and Hamas are stinking rich seems to be irrelevant. Similarly dismissed is the issue that under Israel governance, the Palestinian economy boomed until the late 1990s.

Ha’aretz, an Israeli paper not known for being sympathetic to the current government, gave light on Friday to a very different approach. It discussed how at a recent Fatah conference in Ramallah, the non payment by the PA of April’s salary to 40,000 civil servants in Gaza was the hot topic.

Remember that it is now over a decade since Hamas violently eradicated the PA from the Gaza Strip. And the attempt on the life of the PA Prime Minister while visiting Gaza is still seen as a major insult by President Abbas.

These civil servants represent about 14% of the work force in Gaza. The value of their salaries is about 80 million shekels, the equivalent of a little over US$20 million. Throw in the fact that Hamas has increased taxes over the past year, and all this adds up to a dearth of money in the Gaza economy…. in the very week that Ramadan is about to commence.

According to Reuters, May’s wages have turned up, but with a 20% pay cut automatically docked. The squeeze is on, and Israel is merely a bystander in this powerplay? Well, not entirely. Potentially, it could up even further the humanitarian supplies flowing into the costal territory via the Kerem Shalom crossing point.

The problem is that on Friday the border post was thrashed by Palestinians, causing an estimated US$9 million worth of damage. As if to make my point for me, an Israeli news site reported that:

A Palestinian source in Gaza, meanwhile, told Ynet that Hamas has been profiteering considerably as a result of the crossing’s destruction. The Kerem Shalom crossing is operated by the Palestinian Crossings Authority, which is controlled by the Palestinian Authority (PA) rather than Hamas, he noted.

The source then explained that Hamas was encouraging rioters to damage crossings, thereby causing the PA to lose revenue from customs and other taxes levied on incoming goods.

Bringing the goods in through the Rafah border crossing, the source added, will allow Hamas to pocket such tax levies.

The riots over the next few days will distract international news media partially from reporting on the American embassy in Jerusalem. They will help to sow new hatred, both between rival factions and against Israel. They will also ensure that the poverty remains exactly where it is, so that swords are not turned into ploughshares.

Time to blame Israel again?

 

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