Israel–Palestine relations

Israeli–Palestinian relations

Israel
Palestine

Israel–Palestine relations refers to the political, security, economical and other relations between Israel and Palestine (as well as with the preceding Palestinian National Authority and earlier Palestinian Liberation Organization). Israel and the PLO began to engage in the late 1980s and early 1990s in what became to be the Israeli-Palestinian peace process, culminated with the Oslo Accords in 1993. Shortly after, the Palestinian National Authority was established and during the next 6 years formed a network of economic and security connections with Israel, being referred to as a fully autonomous region with self-administration. In the year 2000, the relations severely deteriorated with the eruption of the Second Intifada - a rapid escalation of the Israeli-Palestinian conflict. The events calmed down in 2005, with only partial reconciliation and cease fire. The situation became more complicated with the split of the Palestinian Authority in 2007, the violent split of Fatah and Hamas factions, and Hamas' takeover of the Gaza Strip. The Hamas takeover resulted in a complete rift between Israel and the Palestinian faction in the Gaza Strip, cancelling all relations except limited humanitarian supply.

Background

Economy

Israel’s GDP per capita is more than $35,000, and the unemployment rate is at 5%.[1] Israel maintains a strong currency and has the best protection of property rights of all the economic systems in the Middle East. Israel is a member of the OECD (Organization for Economic Cooperation and Development), and is also known as the “entrepreneurship country.” [2]

Due to historical reasons, Palestine has not been able to form a completely independent economic system. Foreign direct investment is almost non-existent. Israel is ranked 19 on the UN’s Human Development Index ranking of 177 countries, while Palestine is in the lower 100’s.[3] In addition to agriculture, Palestine's main economic income is aid from the international community and Palestinian labor in Israel or other places.[4]

Joint economic cooperation between Israelis and Palestinians officials has experienced growth over the past years. Starting in 2008, Cisco Systems began a concerted effort to jump-start the nascent Palestinian IT sector with a holistic ecosystem approach, encompassing venture capital, private equity, capacity building and direct outsourcing to Palestinian companies. The company invested $15 million toward that end and drew in other major international investors and donors, including Microsoft, HP and Google. The Palestinian IT sector has since grown from 0.8% of GDP in 2008 to 5% in 2010.[5]

Olives of Peace is a joint Israeli–Palestinian business venture to sell olive oil. Through this project, Israelis and Palestinians have carried out joint training sessions and planning.[6] The oil is sold under the brand name "Olives of Peace."[7]

In October 2009, a new government-funded project launched promoting tourism and travel between the two areas. New business efforts and tourist attractions have been initiated in Jenin.[8] The two regions are planning a joint industrial zone which would bridge the border. Palestinians would produce locally-made handicrafts and sell them through Gilboa to other regions of the world. Another possible project is a joint language center, where Israelis and Palestinians would teach each other Arabic and Hebrew, as well as aspects of their cultural heritage.[9]

Since 2010, Israeli high-tech companies have employed Palestinian engineers. To date, the majority of them are outsourced workers, but Mellanox, a computer hardware firm, plans to hire 15–20 Palestinian engineers as regular employees.[10]

In 2011, bilateral trade between Israel and the Palestinian-ruled areas reached $4.3 billion, with Israeli exports to the PA amounting to $3.5 billion and Palestinian exports to Israel amounting to $816 million. According to Nader Tamimi, chair of the Association of Traditional Industries in the PA, there are regular interactions between Palestinian and Israeli businessmen.[11]

At a conference hosted by the Faculty of Business and Management at Ben-Gurion University of the Negev in 2012, Israeli and Palestinian trade experts met to discuss ways of promoting cross-border business interactions.[11]

Politics

The political relationship is rooted in conflict between Israel and Palestine. The conflict is over whether or not Palestinians should be able to form its own separate country in government within a part of land that currently belongs to Israel. Palestine, in the years before 1948, was piece of land surrounded by the Jordan River, Egypt, the Mediterranean Sea, Syria and Lebanon.[12] The battle over this specific area of land has arisen due to contrasting views on who has a valid claim to the land. According to Jews, the Hebrew Bible states that Palestine has been promised to them by God. They believe that modern day Palestine was ancient Israel. However, Palestinian Arabs are unwilling and unable to acknowledge their claim of Israel. Palestinians believe that because they maintained control of the land, it should stay in their possession. The continual conflict between Israel and Palestine regarding their inability to acknowledge the other’s claims to territory has resulted in many years of violence and instability in the region.

The area of land that has caused political conflict between Israel and Palestinian also effects international relations. That area of Palestine influences the demand for oil on a more global platform. This has caused the United States and other nations to come together in the hopes of finding a solution to the conflict. However, a solution to the conflict is currently still evasive.[12]

Israel and the United States perceive the military actions of Hamas as terrorist aggression, and cite Israeli national defense as the rationale for Israel's aggressive military response. On the other hand, Palestinians view the actions of the Israeli military as state-sponsored terrorism. Both sides continue to suffer casualties as the impasse over territorial rights in the region continues. This conflict spills over into the regional and international communities, with both sides drawing support and military aide.[12]

Current status

Economic relations

Israel desires a strong economic system for Palestine. The Israeli government has created and distributed areas to expand Palestine’s trade system, which includes import/export passages, information, specific economic sectors and transportation. Israel also encourages Palestinian to invest in Israel. The Israeli government has promised to provide risk insurance and long term visiting permits to the Palestinian investors.[13]

As of 2015, Israel and Palestinian administration in the West Bank continue in partial economic relations, including limited bilateral trade, transfer of goods from and to Palestine via Israel (in which Israel collects the imports taxes and transfers to Palestinians), limited electricity and water sales from Israel to Palestinians and admission of Palestinian workers from the West Bank to work in Israel on daily basis.

In 2013, commercial trade between Israel and the Palestinian Authority were valued at US$20 billion annually. The continuously increasing transactions led to the creation of the joint Palestinian and Israeli initiative, the Jerusalem Arbitration Center (JAC). The center will specialize as an independent institution focusing on business arbitration between Israelis and Palestinians.[14]

Before the most recent conflict, many Palestinians were unemployed, resulting in a struggling Palestinian economy. As of 2014, this has only worsened, with 1 out 6 Palestinians left jobless. The World Bank Country Director for West Bank and Gaza Steen Lau Jorgensen has stated, “Without immediate action by the Palestinian Authority, donors and the Government of Israel to re-vitalize the economy and improve the business climate, a return to violence as we have seen in recent years will remain a clear and present danger.”[15]

In January 2015, Israel withheld tax transfers to the Palestinians in response to the Palestinian membership application to the International Criminal Court.[16] Activists in Abbas' Fatah movement countered it by enforcing a boycott of goods made by Israeli food companies.[16]

Security coordination

Palestinian security forces in the West Bank have retained limited security relations with the Israeli counterparts in the IDF and Shin Bet since re-establishment of relations in 2005. The parties cooperate on prevention of Hamas and Islamic Jihad activity in the West Bank, which is considered a threat by both parties.

In March 2015, the PLO Central Council adopted a resolution calling the Palestinian President to cease cooperation of Palestinian security forces with Israel in light of severing economic and political relations.[16]

In October 2015, tensions rose, resulting in thirty-two Palestinians and seven Israelis being killed in two weeks. The unrest was a result of Palestinians’ resentment over heightened Israeli intrusion on the al-Aqsa mosque compound in Jerusalem. A UN spokesman denounced Israel’s actions on the matter, and stated that UN Secretary-General Ban Ki-moon "would find that the apparent excessive use of force by Israeli security forces is also troubling and demands serious review, as it only serves to exacerbate the situation, leading to a vicious cycle of needless bloodshed."[17]

See also

References

  1. ↑ "World Development Indicators". databank.worldbank.org. Retrieved 2015-12-08.
  2. ↑ "Global Entrepreneurship Index". thegedi.org. Retrieved 2015-12-08.
  3. ↑ "Human development index (HDI)". hdr.undp.org. Retrieved 2015-12-08.
  4. ↑ "How Much International Aid Do the Palestinian Territories Receive? - Israeli-Palestinian Conflict - ProCon.org". israelipalestinian.procon.org. Retrieved 2015-12-08.
  5. ↑ Cisco Pioneers Market Development Approach in Palestine, Mission Measurement, June 2012
  6. ↑ “Israel-Palestinian cooperation a decision that makes sense from the economic point of view”, Konrad-Adenauer-Stiftung (KAS) a political foundations in germany for Mideast dialogue and cooperation, 26 October 2008.
  7. ↑ New joint Israeli-Palestinian olive oil brand launched, Ynet news, 20 March 2007
  8. ↑ RON FRIEDMAN (9 October 2009). "Jenin now open to Arab-Israeli and foreign tourists". jpost.com. Retrieved 12 June 2014.
  9. ↑ RON FRIEDMAN (15 October 2009). "Mutually assured prosperity". jpost.com. Archived from the original on 16 September 2011. Retrieved 12 June 2014.
  10. ↑ Tali Heruti-Sover (7 November 2010). "High-tech company aims to be first Israeli firm to hire Palestinian engineers". Archived from the original on 10 November 2010. Retrieved 12 June 2014.
  11. 1 2 Arieh O’Sullivan (30 May 2012). "Israel Increasing Imports From Palestinian Areas: Conference aimed at fostering better business ties". Retrieved 12 June 2014.
  12. 1 2 3 "An Overview of the Regional Conflict and the Current Relations Between Israel and Palestine". connection.ebscohost.com. Retrieved 2015-12-08.
  13. ↑ "Israeli-Palestinian Economic Relations". www.mfa.gov.il. Retrieved 2015-12-08.
  14. ↑ "Israeli Palestinian business center". Retrieved 12 June 2014.
  15. ↑ "Palestinian Economy in Decline and Unemployment Rising to Alarming Levels". World Bank. Retrieved 2015-12-08.
  16. 1 2 3 "PLO officials calls for ending security coordination with Israel". ynet.
  17. ↑ "UN Security Council to meet on Israeli-Palestinian violence". The Jerusalem Post | JPost.com. Retrieved 2015-12-08.
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