The World Bank’s latest report on the Palestinian economy points describes 2% growth rate in Gaza, trying to support an unemployment rate of over 40%. Clearly this is unsustainable. What can be done?

The recent moves of reconciliation between Hamas and  the Palestinian Authority (PA) offer some hope. According to Doron Peskin from Concordmena, The agreement should lead to an extra US$165 m of support from the UAE. This will be in addition to the current annual payments of:

  • US$140 m from Iran
  • US$120m from the PA, primarily for salaries and electricity
  • US$100m from Qatar
  • US$50m from Turkey

Tax revenues are rarely revealed but Hamas leaders clearly find a way to finance their own lavish life styles, assumedly from willing local contributions.

Clearly all of these amounts are fickle. For example, the UAE contribution is apparently dependent on former Gaza bully and aspiring successor to President Abbas, Mohammed Dahlan, being handed some level of power in the territory. So, what other revenue sources can emerge?

One possibility is the extraction of the estimated 32 billion cubic meters of national gas just off its coast line. There are rumours that an agreement has been signed with a Greek developer and a contractor called CCC. However, concrete details remain sketchy.

A second source of relief could come from “impact investing“. For example:

A project to produce tablets for schoolchildren and their parents, a company that reduces the need for pesticides, an IT development centre in a crisis-ridden location and a bond to fight type 2 diabetes….They are all cited by investors and entrepreneurs as examples of impact investments in Israel and the Palestinian territories.

Yet again, the question remains if political stability will allow enough such entrepreneurs to come forth? There are already reports of the PA arresting Hamas representatives.

Another angle could be a hoped for relaxation of central control of the Palestinian economy. One small indication of change is entrance of a second mobile provider in Gaza. The hope is that prices will drop, service will improve, and thus improved corporate taxation will allow the exchequer to benefit.

The reality is that Gaza needs open borders with its neighbours. This is unlikely to happen so long as Hamas considers Israel to be a pariah state and wages war against it. This policy was most clearly indicated last week, when the Israeli army destroyed a tunnel from Gaza. Those Palestinian soldiers killed had crossed the border, underground. (It should also be noted that it takes considerable investment and raw materials to construct such tunnels.)

The unfortunate bottom line is that the Palestinian leaderships can always blame Israel for their woes. With a willing international community and a supportive set of UN institutions, this stance absolves them from any form of responsibility. Hoorah!

And meanwhile most people in Gaza will continue to be dependent on handouts.

Israel’s economy is a study in contrasts“. Thus headlined “The Economist” magazine a few days ago.

The article is wide in its scope. For example, it highlights the desert city of Beersheva as a world leader in creating cyber technology. And that is just for starters. The economy grew at 4% last year. Unemployment resides at a lowish 4.3%. Public debt at 62% of the GDP is one of the best ratios in the OECD. The shekel currency has appreciated by 13% against a basket of leading global currencies. And so on.

The magazine does feature the weak side of the Israeli economy. Restrictive import and licensing practices keep the cost of food unnecessarily high. Productivity stats are poor. And with boring predictably, the authors cites Israel’s defense policy for the main cause of the a weak Palestinian economy. Thus, in real terms, “Gazans are about 25% poorer today than they were at the time of the Oslo Accords”.

This is an argument that sounds politically powerful. However, it bares up, neither in the numbers game nor against the facts on the ground. First, as I have mentioned in the past, when the World Bank examined the Palestinian economy prior to 1994, when it was governed by Israel, “the annual growth rate (for the period 1968 to 1999) establishes itself at 5.5%.” As the author Sebastian Dessus observed, this was one of the highest rates in global terms, even allowing for substantial population growth.

The point is that this begs the question as to why the Palestinian politicians refuse to allow cooperation with Israel.

And then there is 8200, renowned as Israel’s high-tech unit in the army, whose geeks produce software and hardware that James Bond filmmakers cannot even dream about. In parallel, for some years, many of the alumni of this elite group have struck out in the start up world. And it is no secret that against what might be considered assumeded norms from around the globe, they have been openly seeking cooperation with the Arab sector in Israel.

Well the 8200 “Hybrid Accelerator” has just initiated its latest round of intakes. They include SAF, Brainkos and Shareshipper to name just three of the seven involved. One cardinal condition for acceptance into the programme is that each team must include at least one Arab member on its staff.

It is this form of contrast which sets the Israeli economy apart, especially from those of its neighbours. This approach, embracing the views of all religions and backgrounds, that is one of the key reasons why Israel has become known as the start up nation. And that is why “The Economist” is able to report on such positive economic stats for the Holy Land.

Earlier this week, I wrote how Israel’s 69th birthday party, the celebrations for Independence Day, reflect its amazing economic progress over the decades. In this third and final review, I want to look at one of the lesser known aspects of Zionism – how to relate to Arab minorities.

While pre-state / pre 1948 Zionist leaders fought amongst themselves, many accepted that there must be room for non Jews to play a full roll in the new country. Given geopolitical dynamics, that statement has not been easy to fulfill all the time and there is still much to be done. What can be said is that today, about 25% of the population is not Jewish and this is roughly represented in  the Kenesset, the Israeli Parliament.

How does this outreach manifest itself outside the realms of politics? I want to delve into the complex situation in Syria. The international media, even those outlets known to be hostile to Israel, has often reported and filmed how Israel has been treating thousands of wounded civilians fleeing from the battles in Homs and elsewhere.

I have read an analysis on the activity of the hospital in Nahariya. This is located near the Israeli-Lebanese border and whose managing director is Dr Masad Barhoum, an “Israeli, an Arab and a Christian – in that order“. Since 2013, the hospital has looked after about 1,600 Syrians, roughly 70% of those treated in Israel. The average period of hospitalisation is about 23 days, which reflects the seriousness of the injuries. And the cost of this treatment, estimated in the hundreds of millions, comes out of the purses of the taxpayers.

Remember, from time immemorial, Syria in its various forms has displayed nothing but outright hostility to Israel. And it is difficult to latch on to similar outreach work from Arab countries in the region. In the worst case scenario, Iran is investing its precious oil revenues in strengthening the armies of Hizbollah and Hamas, the very opposite of what Israel is practicising.

My hope is that when there is a Palestinian leadership that comprehends what this form of Zionism can offer them – as per Egypt and Jordan previously – then the path to peace can open up for all.

Boycotting Israeli businesses has been a policy of Arab nations since May 1948, when the State of Israel was founded. Just how effective is it today, nearly 70 years on, in a period of globalisation?

The boycott has seen many forms. Initially, the Arab League simply adopted the methodology of the Nuremberg Laws from Nazi Germany. And for decades, most Japanese companies stayed away from the Holy Land. Since the year 2000, the BDS campaign has taken up the call, demanding a disassociation from anything to do with Israel, including overseas players who visit the country.

Surely, over the years, there has been an unmeasured level of success of the messages of such policies entering the minds of neutral thinking people. The result is an increased distrust or worse of Israelis for some. But more than that?

My wife was recently talking to a leading techie in one of Israel’s premier IoT companies. He frequently travels to exhibitions, where Israeli companies are sought after. Any talk of a boycott is simply a joke. Business is business, and political vicissitudes have no place. And that is good for all of us.

As proof of that, look at today’s announcement by SAS to relaunch its flight schedule between Sweden and Israel. Now the Scandinavian country is no friend of Israel’s on the diplomatic scene, to say the least. However, the combination of tourism and business disrupts those paths towards hatred.

To quote from today’s announcement coming out of Israel’s Ministry of Tourism:

The following companies (have also) announced the opening of new routes(to Israel): WOW, Ryanair, Wizz Air, Hainan Airlines and Air India………..Incoming tourism increased 24% in the first quarter 2017 on the same period in 2016.

“Boycott” was a term born in violence in the 1880s. It was hijacked by the revolting racism of the Nazis. It is now employed by the enemies of Israel, hatred wrapped in politically platitudes. Ironically, BDS has a lot of support amongst leading Swedish politicians.

Let us hope the new trade and transport agreements show the way forward for all towards peace for all.

For years, the Palestinian economy has been a dominant theme on the minds of international politicians and diplomats. Ironically, in an era of ‘fake news’, it seems to have fallen down in the pecking order of world issues. Is that because the champions of the Palestinian cause like Presidents of Syria and North Korea are more demanding, or has the reality on the ground changed?

There is no doubt that there is increasing evidence that the Palestinian economy has been on the up for some time.

And so the list goes on. However, in the opposite corner, there are plenty of downers, not helped by the insistence of Hamas in Gaza to devote resources to war rather than basic human development. For example: –

And meanwhile, in defiance of American law and European directives, the PA continues to fund the families of Palestinian martyrs and the welfare of cell mates in Israeli prisons. Officially, this was valued at US$180 million in 2016 alone. And it should be pointed out that much of the PA budget comes from overseas donations, which means the pockets of Western taxpayers.

In truth, the average Palestinian is still very poor. The official GDP is less than that of Egypt. And yet, the weaponry of Hamas becomes more sophisticated by the month. Leaders of the PA and Hamas live a life of luxury. Corruption is never far away from the talk of the day.

It is sad to see. The Palestinian economy, that could be so vibrant as its nascent high-tech industry is testing, continues to be doomed by leaders concerned with violence rather than people.

I have just returned from a visit to a large medical in clinic in Jerusalem. People of all persuasions and languages – pensioners, soldiers, Arabic, English, Hebrew and Russian.

And this started me thinking how some of those in the waiting room might define themselves as Palestinians. Surely there are other areas of cooperation between the sides that the world media just does not allow others to learn about. A quick consultation with Rabbi Google, and I was stunned to learn just how embracing are the joint areas of activity. For example: –

  • Let us start with a practical example of everyday life. A dog sanctuary, located in Beit Sahour near Bethlehem, is often short of resources. A way has been found by the Palestinian Authority (PA) to enable Israeli animal lovers to help out.
  • The Negev desert has seen many projects involving both Israelis and Jordanians. Much of the effort is focused around the Arava Institute For Environmental Studies. With nearly a thousand graduates over two decades, “about 29 percent are Israeli Jewish, and about 24% are Arabs from Israel, Jordan and the Palestinian Territories“.
  • Israel’s scientific partnerships with the EU are well documented. However, I came across this EU sponsored consortium, the SESAME Project – Synchrotron Light for Experimental Science and Applications in the Middle East.

Based in Jordan, it is an independent laboratory formally created under the auspices of UNESCO nearly 15 years ago. The founding members of SESAME include Israel and countries that do and some that don’t have diplomatic relations with each other, including Iran, Bahrain, Cyprus, Egypt, Iran, Jordan, Pakistan and Turkey, as well as the PA.

  • Water has often been a cause of sharp rhetoric for those campaigning against Israel. Last Sunday, “Israel and the PA signed a water cooperation agreement , the fourth major infrastructure deal agreed to in the past year and a half.” Other accords refer to electricity, mobile phones and mail distribution. Significantly, the document on water takes a long term approach, allowing for parallel changes in population for many years to come.
  • And finally, if all of that is a tad too gentle for you, yes, cooperation between Israel and the PA exists over security issues. Maj. Gen. Majid Faraj is the powerful head of President Abbas’ General Intelligence Service. He has also been seen as a potential successor to his octogenarian boss. Interviewed by “Defense News” last year, at the height of tensions with Israel, Faraj confirmed that in previous months “PA intelligence and security forces have prevented 200 attacks against Israelis, confiscated weapons and arrested about 100 Palestinians – claims that were not rejected out of hand.”

The past month has revealed a flood of stories from university campuses in the USA and the UK, where Jewish and Israeli students are physically and verbally abused. This is part of the  BDS campaign to boycott anything remotely resembling a link to the Jewish State.

As I have frequently observed, such a campaign is nothing short of anti-semitic. It is certainly hypocritical because has less to do with Palestinians and more to do with denigrating Israel. And BDS proponents simply lie, because they will not admit that Palestinians – from top leaders down – are also working, very well, with their Israeli counterparts.

BDS – Boycott, Divestment and Sanctions of Israel – has been around for about 15 years in its present structure. Formally, it calls on the world to punish Israel on behalf of the Palestinians.

There is no doubt that its politically correct slogans have attracted many to its cause. Occasionally, a pop group may cancel a tour of the Holy Land. A company may reduce or cease trading with counterparts in Tel Aviv and Jerusalem.

On the other hand, as I have repeatedly pointed out, it is a movement founded upon hypocrisy. Its leader studied at Tel Aviv University with all facilities open to him. It is a movement that fails to condemn human rights abuses by Palestinian leadership. Above all, it is not looking for change in Israel, but its obliteration from the map.

In the past year, there has been a wake up move, rejecting the fallacy of the BDS argument. Four Spanish cities have reversed resolutions, which had called for sanctions against Israel. A guitarist from the Bruce Springsteen outfit notoriously used an expletive to dispel any notion that he would support a ban on visiting Israel. And foreign investment continues to pour into the Holy Land, as the seen by the growing list of over 350 multinationals with R&D centres in the country.

In parallel, it is fascinating to note the increase in demand for space in industrial areas, located in the West Bank. Ostensibly, these would be the first companies to be face boycott calls if their exports were to reach overseas markets. And yet, we learn that the opposite seems to be true, especially when the trade is directed to the very countries BDS supporters had seen as natural allies; China, India and much of Africa.

It is noteworthy to look at the Barkan region, where there is a waiting list of 60 factories. Many of the current facilities ensure that Arabs and Jews work together. And by law, all employees have to receive full employment benefits, which far outweigh anything offered under the Palestinian Authority.

BDS is replete with the bile and hate of the worst elements of politically correct movements. It has impacted on specific individuals, companies and artists. Fortunately, it worst aspects seem – for now – to be over.

As a final thought, maybe if Israel’s detractors would lay down their weapons, then the Palestinian economy would achieve the  3.8% economic growth that Israel reached in 2016. Now that would be a true and direct benefit to the average person on the street in Gaza and in Nablus.

December 2016 – It is nearly time for those end of year celebrations; Christmas and Chanukah fall on the same day this year. So lots of candles to light.

The economy of the Holy Land also stands brightly. I have not hidden my complaints about how certain population sectors have been ignored during recent booms nor how restrictive practices remain in place, such as in the ports. That said, just have a look at this impressive list of achievements as we prepare for a new year.

  1. Israel’s economy is growing at a little over 3% per annum. This is a real increase, factoring in the rise in population. Further, it is close on double the average rate for the OECD.
  2. Unemployment is at a 30 year low, around 4.5% of the work force. Again, this is a stat that other countries can only be jealous of.
  3. Despite a rise in the cost of commodities and the internal growth mentioned above, Israel has managed to ensure that inflation has been kept within reasonable and acceptable limits.
  4. Looking ahead, a strategy is emerging to lower taxes, particularly in the corporate sphere. This will encourage direct foreign investment and thus feed into further growth.
  5. The Palestinians are also set to benefit from this good news. An additional 22,000 daily work permits will be issued for them to cross over from the West Bank and from Gaza. (It is just a shame that they refuse to reciprocate and formally allow in Israeli exports, which would enhance the peace process).
  6. Jordan too is expected to benefit. It will receive cheap gas from new reserves developed by Israel. Jerusalem also intends to double its supply of water to the Hashemite Kingdom in the next few years.
  7. Large conglomerates are continuing to invest in Israel. I mentioned last week that Microsoft is about to invest US$0.25 billion in a new campus, just north of Tel Aviv. GE, BMW, Tata are just some of the other world leaders that have been in the news during the past month, when it comes to extending their activities in Israel.

All in all, 2016 has turned out well for the Israeli economy. I just hope more people can be part of that triumph. Meanwhile, there is cause for optimism regarding 2017.

The Western Wall Plaza in the heart of the old city of Jerusalem is arguably the holiest site in the world. In a proximity important to three great religions, people have been allowed to practice the beliefs freely since it fell into Israeli control in June 1967.

This week, UNESCO will vote on a resolution that effectively abrogates Jewish and Christian history. In an effort to denigrate Israel, the organisation will call for sanctions against the Jewish state. And it is this clear divide between the reality of pluralism as opposed to the world of vicious political or diplomatic manipulations that brought me to question:

‘What else does the world not want to hear about Israel?’.

With incredible timing, this morning I came across three seemingly unrelated pieces of news. Individually, they may be interesting. Together, they reveal a society in Israel that is bubbling, at least partially integrated, and continually struggling to improve despite of all the surrounding external threats. For example: –

Let me deliberately start with some news from the military. The IDF (Israel Defence Forces) has just completed its latest and largest programme to induct people with special needs. In the past few days, 80 young recruits finished a basic training course and are starting to find their way to their designated units.

Then there is the contentious issue as to how Israel treats Palestinians. Now I am not going to boast that all is rosy. However, I can say that this week, I will be starting with a new client who may claim that he is a Palestinian. And this video clip presents a whole different take to what is reported in places like the New York Times and similar. War is created through distrust, while on the ground Israel is doing much to break down barriers with Palestinians.

Number three on my list is actually a set of three women: Miriam Banki, Adenko Sabhat Haimovich and Esther Tapeta Gradi. Not exactly household names. All three ladies were  appointed as judges a couple of weeks ago, not something you would see in most other Middle Eastern countries.

And now look again. Banki’s teenage daughter was murdered last year, when she marched in a gay a parade. There was mass condemnation at the outrage, and this “promotion” must also be seen in that context. In contrast, Haimovich and Gardi were born in Ethiopia. And for all the struggles of the community which has emigrated from there, they represent the progress towards integration that has been made over the decades, and the more that still needs to be done.

Yes, Israeli society is not perfect. However what these stories and anecdotes illustrate is that UNESCO’s resolution today is based on one big fabrication. Is it not ironical, sad and shaming that the leading global agency for cultural integration is promoting a modern form of that classic hatred, known as anti-Semitism?

Last week’s blog on “4 takeaways of the Palestinian economy” highlighted how so much money seeps into Gaza and the West Bank. Yet so little is accountable and so much seems to escape the notice of Western donors.

As one person commented that rather than ‘takeaways’, this is a policy of “giveaways”! And thus on that note, I would like to apply one more comment to this huge generosity from Western taxpayers.

 Alex Fishman wrote a detailed commentary this weekend on the continuing tension between Gaza and Israel. While the government of Jerusalem is investing billions in new tech to prevent tunnels reaching its territory, Hamas has upped the level of digging and shoveling beyond anything previously known. 50 or so terrorists – captured, or those that gave themselves up – have spilt the beans on what is being dug, where, by whom and how.

But let me concentrate on the financials and stats that Fishman alluded to:

  • To date, in 2016, it is estimated that Hamas has channeled up to 300 million nis towards the tunnels. (About US80 m)
  • Approximately 20% of the Hamas budget is allocated to military needs.
  • Despite Egyptian efforts, Hamas still has around 10 or so tunnels pointing in the direction of Cairo. (It is worth recalling, Egypt is furious that ISIS operators in Sinai receive regular support from Hamas, including escape routes and medical treatment.)
  • The tunnel creation is a 24/7 project that has already cost at least 20 lives this year alone.
  • Roughly 5,000 Hamas militia are being trained for ‘tunnel warfare’, more than double the total available in 2014.

Now Fishman did not offer any directs sources to substantiate these facts. However, I think it reasonable to state that Hamas are up to no good. These tunnels are designed to cause injury and destruction.

So, where does the concrete come from? Lorries enter from Israel, ostensibly with raw materials for new homes. Oh come off it!!! No wonder, UNWRA complains that home building is behind schedule.

And where does the financing come from? Strange how that question never seems to be asked in European Parliaments………..even if these same governments give hundreds of millions directly and indirectly every year to Gaza and to the West Bank?

The default reporting mechanism for the Palestinian economy is that it is bust and that is mainly due to Israeli oppression.

The facts that Ramallah and Gaza and surrounds are today replete with shopping centres or that the economy leapt forward when under full Israeli control up to 1999 seem to be irrelevant. So I briefly want to take a quick survey of anecdotal evidence as to what is happening.

Ostensibly, the answer is nothing. The Ma’an News Agency in Ramallah has not updated its economic section in English for over two months. Moving beyond this bizarre situation, I found out that:

1) Certainly, the EU continues to pour in hundreds of millions of Euros on behalf of the Palestinians. It justifies this on the grounds that the money stops a complete collapse of the two-state economy. The strange thing is that the donors from the Arab states are still around US$1 billion short in meeting their commitments, and show little real to pick up the slack.

This does beg the question why the oil-rich nations revoke on their financial pledges to the leadership of Abbas and Hamas? What do they know?

2) That the Palestinian economy is in dire straights is not an argument. It is a fact. The perennial question is where does all the aid go to?

It is significant that even the British newspaper, the Guardian, considered one of the most hostile to Israel for two decades now accepts that:

About 6 percent of the Palestinian budget is diverted to prisoner salaries. All this money comes from so-called ‘donor countries’ such as the United States, Great Britain, Norway, and Denmark.

Thus, by one calculation: “The Palestinian Authority is paying them (prisoners) up to £1,957 a month – more than the average salary of a UK worker.” Absolutely stunning!

Why the complete lack of accountability? Why does UNWRA, what I describe as the largest charity in the world, have no external auditor? Why is so much of taxpayers’ money poured into bottomless pot, yet relatively little is spent elsewhere?

3) The blog of Haifa Diary picked up on a small yet significant news item. The Israeli security services arrested a small-time Palestinian smuggler. No big deal, except that he was carrying thousands of dollars intended to fund Hamas terrorism in the West Bank.

So what is it? The average Palestinian does not need the cash, or their livelihood is just irrelevant for their leaders in this incessant game of hatred?

4) And if we are talking of illegal trade, did you hear about the illegal spare automotive parts, which were nearly smuggled into Gaza? No? Silence in your media?

Well, I bet you did not hear about all of these stories? And maybe it is time to ask why?

For decades, we have heard that the Palestinians do not have any money. We know that their brothers in the Arab League do not readily convert financial promises into actual deliveries. Despite that, Palestinians mange to build extravagant tunnels and shopping centres.

So who is paying for the development of the Hamas regime in Gaza or the perpetuation of the Abbas empire in Ramallah? Consider these three anecdotes that shows what happens on the quiet to the earnings of Western taxpayers.

First, the generosity of the UK knows few limits. It was revealed in the Parliament of Westminster on July 4th by the minister for the DFID, the Department for International Development that: –

DFID provided almost £157 million to the Occupied Palestinian Territories (OPTs) between 2014/15 and 2015/16 to help build Palestinian institutions, deliver basic services and promote economic development. DFID has either met or exceeded the majority of its targets for programmes in the OPTs.

DFID supported over 390 companies to improve their operations and increase competitiveness. In each of the two years, through UNRWA support, over 26,000 families received social transfers (either food or cash) and almost 45,000 children were provided basic education. Furthermore, over 1.6 million medical consultations were provided over the two years.

In addition to this support, the UK provided more than £17m in immediate humanitarian assistance for those affected by the Gaza conflict in the summer of 2014. Non-food Item (NFI) packages were provided for 23,400 families covering their needs for three months.

Very noble. And this does not mention contributions to the EU for Palestinian-specific projects.

So, turning to Brussels, there is no doubt that the EU can be incredibly supportive. It recently contributed 10 million Euros towards a much needed desalination plant in Gaza. Officially, the EU contributes around 170 million Euros annually to the Palestinians. This does not include the hundreds of millions, which find their way to UNRWA. Could this be one of the reasons that the British voted to opt out of Europe?

And finally, some may say ironically, there is the support and training provided by Israel. Yes, the government in Jerusalem is not immune to what happens in the West Bank and in Gaza. One prominent expression of this can be found in the agricultural sector, where two sides met up regularly.  In fact is staggering just how much Israel gives to the Palestinians via business centres, education, medical assistance and much more.  This must be worth tens of millions of dollars in any given year.

This week, a flotilla of aid from Turkey arrived in Israel. The goods are to be transferred under supervision to Gaza. This act of charity may save face for the Turkish regime, but it is not what the Palestinians necessarily need not will it directly help the overall cause of peace.

It is time to change the narrative. The Palestinians do have money – not a lot, but it is right there. They do need more investment, not in its leadership but directly in the people. And as the UK Parliament is beginning to understand, the monitoring of these donations has to become transparent and accountable, which simply is not what happens today.

People who live in Israel often have a problem explaining the ‘true Israel’ to outsiders. They are encouraged to believe by international media that the modern-day Holy Land is engulfed in violence 24/7, while the locals are rude and abrasive.

Moving rapidly away from this over simplification, Ruth Corman has released a beautiful book entitled “Unexpected Israel”, which rightly highlights unusual individuals or the peculiar characteristics of groups in Israel. Together, the sum of the parts is what makes Israel so wonderful and thrilling.

The book reflects close to 90 anecdotes, descriptions or just cameos, all enriched by some excellent photography. For example: What is so unique about playing ‘matkot’ on the beach at Tel Aviv? Alternatively, Corman gives deserved space to the amazing fauna and birds that have entered and conquered the country over the centuries. And she then describes the numerous types of pilgrimages that swamp the country throughout any given year.

It is this last point that truly struck me. So many of her observations seem to focus on people outside Judaism. On reflection, this is a triumph for the pluralism inherent in most Israelis.

However, as  a blogger who tries to find the ‘unusual’ in Jerusalem, I must quickly acknowledge that this is where Corman excels.

  • Tsegue-Mariam, the Ethiopian nun, who escaped fascist and Marxist torture in order to play the piano in the Holy city.
  • Elia Kahvedjian, an Armenian, who survived Ottoman persecution and set up a thriving photography business in central Jerusalem
  • Those many worshippers who write notes of hope and prayer, leaving them in the cracks in the Western Wall.
  • Hassadna, a musical school that strives for excellence, while deliberately looking out for the physically and financially distressed children who want to learn.

Unexpected, but this is only a partial list. That said, my favourite story refers to Dr, Yossi Leshem, who realised that more fighter planes are lost through “clashes with migrating birds” than through enemy action. His solution was to create a fleet of aerial drones to report about the movement of birds.

Leshem’s scheme is so successful that it is supported by Palestinian ornithologists. Jordan and Turkey have incorporated his techniques. And he is in the process of setting a system that will bring together countries along the whole of the African Rift Valley.

Without fuss, Leshem along with countless other Israelis have found a way to breach the established rules of hatred in the Middle East. But you will not read about these stories in the established media.

Israel is a country that never ceases to surprise, and Jerusalem remains at the core of this adventure. It is a duty of Ruth Corman and her others to reveal yet more ‘secrets’ of this small country.

If I normally write about business in Israel and primarily in Jerusalem, the events of last night force me to discuss what happened in Tel Aviv.

Two young Palestinians, dressed up very elegantly, ordered coffee at the popular Max Brenner restaurant in the trendy Sarona market complex in central Tel Aviv. Nothing wrong in that, except that once they had calmly finished their drinks, they slew at point blank range four fellow customers. The security camera captured the massacre.

Since the Autumn of last year, Israel, and particularly Jerusalem, has been the subject of a number of horrendous terrorist incidents. They typically involved random stabbings of innocent civilians.

However, the attack in Tel Aviv has created a new atmosphere, one that has captured the viewpoint of just about all Israelis, whatever their political or religious take. After the anguish, a feeling of deep, deep, deep anger has rushed to the surface. So what was different about last night?

  1. As the video graphically depicts, the attack was cold blooded, just like recent events in Paris and in Brussels.
  2. Despite the comparisons to events in Europe, the BBC, CNN and many others have not been able to call the slaughter a terrorist incident. Somehow, when it comes to Israel, the country is judged differently to 199 other countries around the globe. That stinks of something very putrid.
  3. The attack took place in Max Brenner boutique chocolate restaurant. This chain has many branches overseas and has often been the target of calls to boycott Israeli products. With a very bitter taste of irony, the protest posters include an image of a menacing Israeli soldier, carrying a machine gun……………horrifically similar to the one used by the Palestinians in the attack. Such hypocrisy.
  4. Once the incident ended, the injured were taken to hospital and treated on the basis of ‘most serious come first’. And that included one of the terrorists. Pictures available on the net clearly show the man being treated by a team of Jews and Arabs, despite the carnage the patient had caused barely an hour beforehand. Yes, Israeli medical treatment does not discriminate, but then you have to ask why no Jews are treated in Palestinian hospitals.
  5. Meanwhile, condemnations have come in from the Secretary General of the UN, Prime Minister Cameron and others. Staff from the Australian embassy in Tel Aviv visited Sarona this morning in support of the families who have suffered. And yet….

And yet…..in Gaza and in the West Bank, sweets were handed out in celebration of the killings. One of the largest groups in the PLO described the incident as a “natural response“! Hamas praised it and President Abbas has remained silent.

It sickens. It hurts. It is gut-wrenching. However, for me this is not the cause of my anger.

What truly annoys me is that in another day or in another week, the EU and Obama and others will put this ‘shooting spree’ to one side and call on Israel to make compromises towards peace. As in the past, predictably no such demands or pressure will be asked of the Palestinians.

Remember Paris? Recall Brussels airport? Did the politicians in Europe respond by offering the assailants boxes of chocolates (from Max Brenner, sic?). Israel is treated differently. That is morally repugnant, and this attitude represents a threat to my family.

So I will not apologise for standing up and shouting, very very loudly: I refuse to accept it. Terror needs to be fought, not appeased. World diplomats really must think again, before the attacks spread beyond the capitals of Paris and Belgium.

Reporting accurately on the Palestinian economy has never been easy. If you look carefully at the documents of the World Bank or the IMF, they often contain statements that data collected from Ramallah and Gaza is not of the most reliable standards. That said, various news items more recently have given the outside world a better understanding as to how revenues are used by the Palestinian Authority and by Hamas.

Why is this important for outsiders? Because according to the OECD, approximately 70% of Palestinian expenditure comes from overseas aid. And the overwhelming majority of that aid comes from the generosity of Western taxpayers, who in turn are suffering from their own economic uncertainties.

The OECD estimates that the Palestinians receive around US$2.5 billion in direct aid annually. Ostensibly, the USA is the largest single donor, but much of UNRWA’s support comes from the pockets of European citizens. 49% of the total sums are designated for ‘other social infrastructure’, whatever that may mean. (BTW, total annual contributions to global aid peak above $130 billion. Thus, per capita, the Palestinians receive a very healthy share of the total pool).

And where specially does this money end up? Here are four quick case studies:

  1. A few weeks ago, I discussed how in spite of the checks in place, monies from the UK and from the EU seep through to political prisoners and terrorists. Coblogger Arnold Roth has expanded on this theme. He believes that “the perpetually financially strapped PA spent $144 million paying salaries” in 2014 alone.  Thus, using the 70% factor, donors (including British taxpayers) paid about US$100m towards helping these ‘deserving people’.
  2. On a similar note, the Palestinian commentator Khaled Abu Toameh observed this week that “The Palestinian Authority has used international funds to build prisons and detention centers in the West Bank where torture has become the norm.” He outlines how the Independent Palestinian Commission for Human Rights (ICHR) has received 782 complaints concerning torture and similar abuses. Again, the money to maintain this state of affairs primarily came from overseas.
  3. Moving away from direct political issues, even culture is not immune to the misuse of funds. The New York Times revealed that a spanking new museum in Ramallah was opened on the basis of a US$24m budget. This is to be a great celebration of Palestinian history and art. However, due to internal wrangling, there is not one exhibit for inspection. So, I am forced to ask, where did the budget disappear to and how was it accounted for in front of the donors?
  4. And there is UNRWA, where the EU is proud to show off its contribution. VP Mogherini announced on 4th April:

Since 2000, EU has provided over EUR 1.6 billion to UNRWA out of the European Neighbourhood Instrument (ENI) allocation for Palestine. The bulk of EU aid for UNRWA, EUR 82 million per year for the period 2014-2016, has gone to finance its General Fund (or  Programme Budget)………On top of this, there are ad hoc temporary projects financed via other instruments. Humanitarian funding to UNRWA amounted to EUR 5 million both in 2015 and 2016 (of which, EUR 4 million for shelter assistance in Gaza)……….

Well that is clear. However, less than a month later, we learnt of an event that took place at the UNRWA refugee camp in Aida, near Bethlehem. This celebrated a violent attack on Israeli buses a few days previously. And it would appear that this abuse of funds is not one isolated party.

I could list other items. For example, Hamas has returned to building offensive tunnels to fight Israel. Such an operation can only be carried out by syphoning off raw materials meant for the reconstruction of the area.

If there is good news it is that more and more of this misuse of Western generosity is being reported. However, sadly, Western governments, the EU and others are failing to take serious action. Meanwhile, the instigators of the verbal and military war against Israel grow richer.

Give aid by all means, but make sure you can check where it is going in a transparent and accountable manner. Otherwise, send it to those who do not just need it but will…………..actually receive it.

My post earlier this week about “UK taxpayers’ contributions to the Palestinians – Who benefits? ” has proven to be very timely.

For example, I noted that the UK government struggles to fund joint cooperation programmes between Israeli and Palestinian groups. I was encouraged to read a news release yesterday from the House of Commons, which confirmed that:

As many as 25 Conservative MPs and Lord Polak CBE have written a joint-letter to the Secretary of State for International Development, Rt. Hon. Justine Greening MP, calling on her Department to consider Israeli NGO Save A Child’s Heart (SACH) for funding support.

The MPs write: “Having seen the work of SACH at the Wolfson Medical Centre first-hand, we believe that further UK Government involvement in this laudable charity would be extremely worthwhile”.

Over 50% of the 4000 children who have received life-saving heart surgery from SACH live in Gaza and the West Bank, with the rest coming from across the developing world. The charity also trains physicians and nurses from these countries, providing them with in-depth postgraduate training.

At a time, when the Daily Mail newspaper and others have highlighted the loose way overseas aid is distributed, supporting SACH could only improve the lives of thousands. More importantly, it will allow Palestinian children and their parents to see how Israel need not be seen as an evil enemy.

However, as I asked in my original piece, why is the UK government not seen to be fully transparent and accountable in its funding of Palestinians? And I stress: The issue is not if the Palestinians deserve assistance, but who receives it. The repeated stories of corruption are numerous. And there is no doubt that Palestinian terrorists and their families benefit from overseas aid.

On the latter subject, Palestinian Media Watch has just released a 15 page report, detailing how both the Palestinian Authority (PA) and the Palestinian Liberation Organisation (PLO) have repeatedly hidden the truth from Western governments. Bluntly speaking, both the PA and the PLO subvert the generosity of Western taxpayers. Millions end up with those who have carried out acts of violence against ordinary civilians!

This has to stop. And one way to do that is to ensure that all UK overseas aid is fully scrutinized. And that includes knowing who the independent auditors are and what is their mode of operandi. Otherwise, the unworthy will get richer. More people will be harmed or worse. And British taxpayers will end up throwing away yet more money.

As declared this year in the British Parliament on February 9th:

The Department for International Development (DfID) provided £349 million in support of Palestinian development from 2011-15 and will provide a further £72 million in 2015-16, of which up to £25.5 million will be provided to the Palestinian Authority. This year, UK aid will support 36,000 children in primary education and support 270 enterprises to improve their annual sales or productivity.

What is the equivalent of such sums for the British taxpayer? Well a £349 million injection would wipe off the debts of the NHS trusts in England. Very useful, if you could get hold of it.

On 30th March, it was further announced that:

As part of this support, between 2011 and 2015, DFID provided over £3 million to the Facility for New Market Development Programme and Palestinian Market Development Programme, which has helped businesses expand into new markets and products, and supported the creation of over 2800 new jobs. DFID also provided £2 million to the UN Relief and Works Agency’s which supported the creation of over 45,000 short-term jobs for Palestinians in Gaza who have been affected by movement and access restrictions.

In this case, the numbers do not appear to be consistent. Could £3 million over 4 years really help to create 2,800 jobs? That works out at about £1,000 pounds per job. Maybe. However, £2 million to support 45,000 short term jobs? That is £45 per position. No way!

So what is the fascination with the UK and its apparent need to give to the Palestinians in such generous and unlimited quantities?

Yes, there is deep poverty in parts of the West Bank and in Gaza. It is generally accepted that until that the economic despair is resolved, it remains a potential cause for renewed conflict with Israel. And some believe that it is the duty of Europeans to redress the imbalance caused by America’s massive military aid to Israel.

Even if that baseline remains unchallenged, there are two questions that dominate the debate about the size of the contributions just described. (And these sums do not include support for NGOs and the massive funding via the EU). First, the Palestinians have consistently received what has previously been described by the World Bank as the largest amount of money per capita in the history of foreign aid”. So why do they keep demanding so much more? Second, where does the money go? Who benefits?

It is the latter issue that has so concerned me over the years. For example, the recent scandal of the ‘Panama papers’ revealed cited at least two Palestinians, who you would have hoped would not appear.

  • The son of President Abbas, Tareq, and his “holding company worth more than $1 million in the British Virgin Islands”.
  • Muhamed Mustafa, former deputy PM and now head of the powerful Palestine Investment Fund.

A smell of possible kleptocracy? Ironically, around the same time of the leaking of the Panama documents, the Daily Mail newspaper released an expose, which detailed how UK taxation was funding Palestinian terrorists. The item was so intense that it drew an official government response. In fact, much of the denial was forced to focus on the issue of the Palestinians.

Since then, there have been several questions in both of the Houses of Parliament as to what steps Her Majesty’s Government “are taking to ensure that UK aid to Palestine is not given, directly or indirectly, to the families of suicide bombers or to convicted prisoners.” And the answer is often that:

UK aid to the Palestinian Authority (PA) is subject to rigorous scrutiny, with safeguards in place to ensure its being used for proper development purposes. Our financial assistance to the PA is used to pay the salaries of civil servant and pensioners. Our support is provided through a multi-donor trust fund administered by the World Bank, which carries out close monitoring of PA expenditure. Only named civil servants from a pre-approved EU list are eligible, and the vetting process ensures that our funds do not benefit terrorist groups. The process is subject to independent auditing.

But no lists are provided. The independent auditor is not revealed. Even the EU auditors determined back in December 2013 that its own ‘independent’ system by the name of Pegase “needed to be strengthened”.

Significantly, on April 15th, the government conceded that “UK officials meet regularly with the (Palestinian) Ministry of Finance and consistently lobby it at the highest levels on whether prisoner payments can be made more transparent and affordable.” George Orwell would feel vindicated with this double talk.

But what is staggering is that these so-called Palestinian civil servants undoubtedly include the full gamut of the Palestinian security sector – police, the army, Presidential Guard and a vast array of secret forces. All have been linked to terror in the past. And many are on the pay role of Hamas in Gaza, whose is persona non grata throughout Europe, America and elsewhere. In other words, the UK is supporting the very people who are destroying the purpose of what the funds are set aside for – peace and a better society for all.

Where could the funds go instead? Well there is no point in directing them towards UNRWA. Nominally part of the UN, this is probably the largest charity in the world, yet it has no external audit. Words such as transparency and accountability are seemingly irrelevant to its operations.

Disturbingly, on February 10th, there was an admission that there is no direct UK funding of joint Israeli-Palestinian programmes. However, through the Conflict Stability and Security Fund (CSSF), the UK provides a meager £40,000 for the ‘Youth Creating Peace On/Line’ project which encourages educational cooperation between Palestinians and Israelis.

So how about investing resources in key infrastructure projects? And then I hit on this report, albeit from the European Union in Brussels on April 21st.

The Palestinian Authority (PA) awarded in 1999 a 25-year exploration license for the marine area off the Gaza Strip (called Gaza Marine) to a consortium of the BG Group (British multinational oil and gas company) for 90% and the Consolidated Contractors Company (CCC) for 10%. The BG Group, which discovered the Gaza Marine field about 36 kilometres offshore in 2000, has recently merged with Shell. The field has not been developed to date.

And there you have it. In the blue corner, Israel develops its offshore gas resources, thus strengthening its financial base. In the red corner, Hamas ignores a ‘brave new world and cries ‘poverty’. In turn, it receives billions in international handouts and thus develops its ‘tunnel economy’. This fosters exports in the form of terrorists sent to attack Israeli civilians.

Arnold Roth is a well-known blogger on the theme of financial transparency. He has been invited to speak at Parliaments around the globe. He wrote recently that it is an outrage that no professional resources have been devoted to discovering where all this money has disappeared to. And he continues:

The Europeans and the Brits can say what they like about everything being checked and no possible room for malfeasance. But that’s not what the PA says to its own people. The message from the Abbas insiders for internal consumption is that, as bankrupt as their regime is, there will always be money for those “heroic” Palestinian Arab convicted slaughterers of children and of Holocaust survivors.

In that light, you have to ask if the thousand or so tunnel diggers are also considered civil servants as per the list held by the UK government. Similarly, if Hamas is able to devote resources to renewing its tunnel war against Israel, why is the UN surprised that around 75,000 houses in Gaza have yet to be rebuilt? Maybe the leaders of Hamas should direct some of their profits from the foreign currency monopoly or real estate transactions towards helping their own citizens?

And if they did? Hundred of thousands of Palestinians would be better off. And decent taxpayers in the UK might be able to receive greater benefit from their own monies that they have gainfully earned yet have been asked to part with for the ‘greater international good’.

In the past three days, I have witnessed three amazing and seemingly unconnected events in Jerusalem.

First, I was waiting for a taxi at the airport to fill up and to take me back to the Holy City, when suddenly the driver was engulfed. A group of Christian pilgrims from the UK had just flown in for a prayer meeting at the Dan Hotel. Nine of them excitedly clambered on board and we drove to their home for the week. Located in what some call Eastern Jerusalem, they were looking forward to seeing the Jewish homeland.

The next day, I was in Sha’are Zedek hospital in the centre of the city, this time waiting for a lift. The hospital is known to treat everyone by everyone. For example, it actively seeks to train doctors from areas like Bethlehem. As I entered the lift, a large Muslim family turned up, about ten of them of different ages. We moved up the floors together, with no hassles either way. I smiled.

And yesterday, I moderated a “speed dating” event at the Jerusalem Business Networking Forum. Over 50 people of different religious persuasions swopping business cards and creating commercial relationships.

Amongst all of this most natural of multiculturalism wanders the UN Secretary General, Ban Ki-moon, and declares otherwise. At a session of the Security Council in New York, ostensibly about peace in the whole of the Middle East, he devoted 90% of his words to the Israel-Palestinian conflict.

If you study Ban’s speech carefully, you will note that he hurriedly condemns Palestinian violence against Israeli citizens. However, of his 1,273 words, at least half can be attributed to an attack on Israeli policies and his appraisal that the government in Jerusalem is not pursuing peace. Prime Minister Netanyahu has since responded and the two sides are engaged in a war of words.

The point? Well, Ban did not call on the Palestinians to make efforts towards peace with Israel. In fact, he stated that “as oppressed peoples have demonstrated throughout the ages, it is human nature to react to occupation…”

In the decades since the PLO launched modern terrorism in 1964 with the backing of the Soviet block, never have I heard just a justification for terror. Does that mean that tens of thousands of pilgrims, hundreds of thousands of non Jewish visitors to hospitals, and countless business leaders of different backgrounds have got it wrong? Should they be turning (physically?) on their hosts in Jerusalem? Is that how people all over the world should react if they feel ‘oppressed’?

Last night, about half a kilometer away from where I was, people were hanging out as usual in a local burger bar. An 18 year old Muslim deliberately followed a 35 year old orthodox Jew into the place and proceeded to stab him in the neck.

I refuse to describe this act as “human nature”. Thus I call on others to reject the UN’s pathetic model towards peace. I welcome those Christians and Muslims and Jews who I met in Jerusalem earlier as my heroes for the week.

The BDS campaign is designed to secure support for the Palestinian cause, by highlighting the wrongs of Israeli society. Friends and campaigners are asked at the very least to boycott Israeli goods made in the West Bank. And this call to action has been extended to all Israeli products, as well as to entertainers and academics.

So, what does this mean in effect? There are those who determindly buy into this line of thought. On the other hand, just recently, there have been some startling rebuttals. For example: –

Just where can BDS make a successful difference against Israel? To show the way forward, last weekend, a group of protesters, dressed up as “inspectors”. They stormed into a large supermarket in Bremen, Germany, frightening customers and insisting that Israeli products be ‘correctly labeled’. A similar incident took place in the Galeria Kaufhof store in Berlin.

I can only assume that these people achieved their desired effect and thus sales on the relevant products dipped for the day. And it is almost 78 years to the day, Kristallnacht, when Nazi Germany created the same effect, demonstrating the full trust of their anti-Semitism.

Over six months has passed since Human Rights Watch (HRW) released an extensive report regarding the use of Palestinian child labour in Israel settlements. It sets out to detail that hundreds of children are employed, usually on farms, sometimes under aged, and frequently for miserable amounts of money. If correct, this is wrong. The analysis still triggers questions in the European, British and other Parliaments.

NGO Monitor has regularly pointed out the disproportionality of HRW’s work when it comes to Israel. In this specific case, the group rightly questions the methodology as well as the transparency of the evidence supplied. Reading the  HRW report, the flaws are obvious to even the untrained eye.

But what about those Palestinian children?

First, let us assume that there is just one Palestinian child abused on just one farm. That is one too many. However, as the report admits, Israeli child law is based on international law. Instead of investing millions in creating a 70 page document – of which over 50% seems to focus on the minutiae of irrelevant international law and not the children – and in order to obtain justice, HRW merely needed to ensure that prosecution lawyers were found – again assuming the allegations are truthful.

It would seem that HRW is not actually interested in the children per se. And for the record, HRW did not discuss the possibility of Jewish kids working on the farms – a point which I find abhorrently selective.

Second, and in my view more relevant, why is stronger criticism not thrown at the Palestinian middlemen, who reportedly connect the children with potential employers. If the kids need to work, why do the not place them with Palestinian businesses and farms?

Also lacking here is equivalency. There is no parallel HRW report of such Palestinian employees. Yet, if you surf the internet carefully, you will find documented incidences of how these children are exploited by their own community leaders.

The ‘need to work’ then prompts the issue of the Palestinian economy itself. We know that since the Oslo Accords of 1994, the Israeli economy has doubled in size. Yet, as asked by leading academic Moshe Elad, what have the Palestinians done to develop their own economy? Yes, the IMF has confirmed that the Palestinian economy grew annually by 5.5% for three decades since 1967 under Israeli supervision. However,

In other words, what can be left for the average Palestinian business owner in order to employ adults or even teenagers? Wages in the Palestinians territories are clearly so poor that it is the key factor why every day tens of thousands of Palestinians flock to work inside Israel, and this includes people under the age of eighteen. And as for the practices of good social government and the protection of children by the regimes in Ramallah and in Gaza, forget it!

Israel has often claimed that Palestinian children have been used as human shields in the fields of battle. That is against the Geneva Convention. But these youngsters have also become pawns in the battle for Western media and the opinions of decision makers.

The true winner in this  debate is ‘reverse psychology’. The Palestinian children are abused. The real criminals are shouting, pouring bile and blame in the direction of Israel. This rhetoric merely serves as a convenient cover for their own sins. The HRW was blind enough to lap it all up. And you now know who has lost out? The abused themselves.

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